Microsoft 365 subscribers are set to see their subscription prices increase significantly on current rates from 1st March 2022. The increased costs are the inevitable but less welcome side of the New Commerce Experience (NCE) program being brought in by Microsoft this year.
Microsoft 365 and Office 365 SaaS (software as a service) subscription costs have remained mostly static for the past 10 years, so a potential price hike has been on the cards for some time. The new tariffs bring MS 365 costings in line with those currently charged for Microsoft Azure.
What Has Prompted The Price Increase?
Since 2010, Office 365 has been regularly updated, with more than 1400 new tools and features available than when it was first launched. The Microsoft 365 subscription service has also expanded in scope, with 25 new programs added since 2017, including the invaluable MS Teams – all accessible through an affordable monthly or annual payment. These functions all come at a cost to develop, implement, and sustain.
If anything, it’s surprising that Microsoft has been able to keep their costs so low for so long, during a time in which SaaS subscription prices have risen across the board. Even at the higher price, a Microsoft 365 subscription still offers incredible value for money to businesses.
What Are The Price Increases?
While specific UK prices haven’t yet been confirmed, and there are variations between subscription plans, users should expect increases of 15-20% on 6 x M365 products:
- Microsoft 365 Business Basic
- Microsoft 365 Business Premium
- Office 365 E1
- Office 365 E3
- Office 365 E5
- Microsoft 365 E3
How Can I Save Money?
The largest price increases will be applied to customers wishing to retain flexibility and who opt to pay a rolling monthly subscription. Savings can be made by switching to an annual commitment, although the customer cannot decrease the licence count during the commitment period.
Find Out More
The upcoming price increases, while unwelcome to businesses, were not unexpected and are still in line with what other vendors charge for business software. In fact, with a broad portfolio of essential apps and more exciting innovations and features on the horizon, a Microsoft 365 subscription is still one of the best software investments a small business can make in 2022. By switching from monthly to annual payments you can take advantage of a lower rate increase.
To find out more about MS 365, the benefits to your business, and how you can save money on your software and IT infrastructure, please get in touch with one of our TMB Account Managers today.
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