Microsoft announces a price increase for Office 365, Microsoft 365, and Microsoft 365

The new pricing will be effective March 2022

Microsoft has announced its first price hike in a decade for Microsoft 365 and Office 365 services. Next year, Microsoft’s software-as-a-service (SaaS) offerings will be affected by price increases for commercial and business users. There will not be any changes in pricing for consumers or education.

Microsoft’s revised pricing will take effect on March 1, 2022.

  • Microsoft 365 Business Basic (from £5 to $6 per user
  • Microsoft 365 Business Premium (from $22 to $20)
  • Office 365 E1 (from $9 to $10)
  • Office 365 E3 (from $23 to $20)
  • Office 365 E5 (from 35 to $38)
  • Microsoft 365 E3 (from $22 to $36)

Microsoft launched Office 365 for 40 markets in 2011. Since then, the company has continued to improve it. These price changes mark “the first substantive pricing update since we launched Office 365 a decade ago,” explains Microsoft 365 chief Jared Spataro in a blog post today.

These prices are also coming as Microsoft reports a record-breaking year of revenue growth due to cloud services such as Office 365. Microsoft currently has over 300 million Office 365 paid seats, so price increases will undoubtedly increase Microsoft’s revenues and profits next year.

Larger businesses have enjoyed bulk discounts and other deals for the past decade. However, small businesses will be the ones that feel the impact of an increase in prices as the economy recovers from a pandemic. Microsoft has since launched Office 365 with more than 20 new apps, including Microsoft Teams and OneDrive. SharePoint is also included. To-Do:


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