Microsoft 365 price changes

By 26/04/2022 April 12th, 2023 No Comments
Microsoft 365 App Logos

Microsoft 365 price changes are coming and here are the two key things you need to know.


Increase in price

Firstly, an increase in Microsoft 365 subscription prices. Microsoft's justifying its pricing changes as Microsoft Teams was a key free addition to the Microsoft 365 suite, which helped fuel remote working and collaboration during the pandemic. Teams now is one of the most widely used apps in the Microsoft 365 suite and is an example of a new app with features that cost Microsoft money to run.

Lock-in terms

Secondly, Microsoft have traditionally been extremely flexible with licensing, allowing us to start and stop licenses on a whim, calculated at a pro-rata daily rate. Now, subscriptions will be fixed into monthly and annual terms, with annual terms being significantly discounted as an incentive.

Microsoft 365 price changes explained

The following table outlines an example comparison of the pricing changes for the Microsoft 365 small and medium sized business packages.

Monthly Price*
Monthly Term Price*
Annual Term Price*^
Microsoft 365
Business Basic
Microsoft 365
Business Standard
Microsoft 365
Business Premium

*Prices are ex GST
^Billed monthly or annually

Time to lock-in annual subscriptions

Now’s the time to look at locking-in annual subscriptions for your core staff as the monthly price over 12 months is significantly higher than the annual term price.

To read Microsoft’s official announcement about this, go to: New pricing for Microsoft 365 – Microsoft 365 Blog

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