If you are a Microsoft 365 user, you are familiar with significant feature upgrades at regular intervals. Recent updates include things like the addition of webinar registration to MS Teams and the new Visio for the web app which is used for creating stunning diagrams.
Most of the updates over the last several years have been without any change to user subscription prices. Microsoft has continued to add value and capabilities without impacting user budgets for the most part.
However, there is a price increase coming in 2022 that Microsoft has called the most “substantive” since it first introduced Office 365 (later renamed to Microsoft 365) over a decade ago.
The company notes that the value it has added over the last 10 years and the additions that it has planned for the future are the reasons why an increase in pricing is needed at this time.
Here is a breakdown of what you need to know to ensure that your business and cloud budget are ready.
Not All M365 Plans Are Being Impacted
Users that are on home/family and educational Microsoft 365 plans don’t need to worry. The price increase is not including those plans.
Companies that subscribe to Microsoft Business Standard are also getting a reprieve and won’t see prices go up at this time.
All business prices aren’t being impacted so some companies that are on a lower-level plan might consider upgrading to Business Standard since the price difference will be slightly less in some cases.
Plans & Pricing That Are Being Increased
Commercial plans, including business and enterprise subscriptions, are the ones that are being impacted by this increase. Prices are increasing between 9% to as much as 25% depending upon the plan users are currently subscribed to.
Here is a listing of the plans that Microsoft has targeted for the increase:
- Microsoft 365 Business Basic: Increasing from $5 to $6 per user/month (+$1)
- Microsoft 365 Business Premium: Increasing from $20 to $22 per user/month (+$2)
- Microsoft 365 E3: Increasing from $32 to $36 per user/month (+$4)
- Office 365 E1: Increasing from $8 to $10 per user/month (+$2)
- Office 365 E3: Increasing from $20 to $23 per user/month (+$3)
- Office 365 E5: Increasing from $35 to $38 per user/month (+$3)
The Price Increase is Happening in March of 2022
The price increase will take effect on March 1, 2022. Companies on any of the above-listed plans can expect an increase in the coming year.
You will be charged the new price on your normal subscription renewal date and any new subscription purchases after March 1st will be charged at the new prices.
If You Are Planning to Subscribe for the First Time, Do It Now
For those businesses that have been planning to adopt Microsoft 365 and haven’t been on the platform yet, now is the time to do it!
If you subscribe prior to March 1, 2022, you will be charged at the current pricing and won’t see the price increase until your annual renewal in early 2023.
Value Adds That Have Triggered the Price Increase
Microsoft made several additions to Microsoft 365 over the last decade which made the increase to pricing necessary.
Security Upgrades
As the cybersecurity landscape continues to get more dangerous, Microsoft has added multiple security and compliance upgrades to Microsoft 365 to protect its users and allow them to protect themselves.
These include features such as:
- Email message encryption
- Sensitivity labels that allow persistent document protection
- Endpoint device management capabilities
- eDiscovery
- Core Litigation Hold
- Data loss prevention (DLP)
Audio Conferencing Upgrades
An area that has become particularly important to businesses in Connecticut and around the world since the pandemic is video and audio conferencing. Microsoft has completely transformed Teams over the last several years and made it a force to be reckoned with in the virtual meeting world.
The company has added captions and automatic transcription support for Teams meetings that supports 44 languages and dialects and makes it easy for people from around the world to connect from any device.
New Applications to Expand Business Capabilities
When Office 365 first came out, it had just a handful of apps and was mainly introduced as an online version of the Office suite (Word, PowerPoint, Excel, Outlook).
Since that time, the company has added over 24 new applications to various M365 subscriptions to boost value and provide companies with the ability to do more processes in the cloud without spending more.
Popular applications that have been added since the platform was first launched include:
- SharePoint
- OneDrive
- Teams
- Bookings
- Forms
- Lists
- Yammer
- To Do
- Whiteboard
- OneNote
- And others
Get Help Implementing/Managing Your Microsoft 365 Plan
Sound Computers can help your Connecticut business through the adoption of Microsoft 365. If you already use the platform, we can help you use it better and take full advantage of all the value provided.
Contact us today to schedule a free consultation. Call 860-577-8060 or reach us online.