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Microsoft announces price increase for Microsoft 365 and Office 365 licensing

Back in August of last year, Microsoft revealed plans to increase the pricing for Microsoft 365 and some Office 365 licenses. 

It is important to note that this is the first price increase experienced for these products for over 10 years. Microsoft has justified these increases by stating that this reflects the development and investment they are making in improving their core business offerings such as Microsoft Teams. 

Please note: Both charity and educational licensing won’t be impacted by the latest price increases 

These price changes will come into force from March 1st 2022 and will only impact on the following licenses: 

Enterprise Licence: 

  • Microsoft 365 E3 from £28.10 to £31.70 
  • Microsoft 365 E5 from £30.80 to £33.45
  • Office 365 E1 from £6 to £7.50
  • Office 365 E3 from £17.60 to £20.20
  • Office 365 E5 from £30.80 to £33.40

SMB Licence: 

  • Microsoft 365 Business Basic from £3.80 to £4.50 
  • Microsoft 365 Business Premium from £15.10 to £16.60 

Are you able to retain the current pricing for your business? 

In theory the answer is yes as you might be able to get your current pricing fixed for either one or three years depending on which plan you currently have in place if it is renewed before March 1st. 

Microsoft has also revealed the following deadlines around Microsoft 365/Office 365 licensing:

  • March 31st, 2022 - Discount pricing for annual agreements ends
  • June 30th, 2022 - End of the ability to renew subscriptions on existing platform
  • June 30th, 2022 - Discount for monthly terms ends
  • July 1st, 2022 - Can no longer renew legacy subscriptions

Next Steps? 

The best thing for your business to do is to contact a Microsoft Cloud Solution Provider such as ourselves who will be able to access a whole host of exclusive discounts as well as advise you on the best way to maximum your current pricing structure. You can also visit our Advantage Marketplace to gain access to additional licensing for your business. 

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