Microsoft to increase Microsoft 365, Office 365 prices

guest · Aug 19, 2021

Microsoft to increase Microsoft 365, Office 365 commercial prices in March 2022
August 19, 2021
https://www.zdnet.com/article/micro...5-office-365-commercial-prices-in-march-2022/

On March 1, 2022, Microsoft will be increasing prices globally of most of its commercial Office 365 and Microsoft 365 subscriptions. Pricing for consumer, education and the highest-end Microsoft 365 E5 SKU will not increase at that time, officials said today, August 19.

Microsoft officials are calling the coming price increase "the first "substantive pricing update since we launched Office 365 a decade ago." (There have been some smaller price increases to the suites over the past 10 years.)
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The increases will range from $12 per user per year more for Microsoft 365 Business Basic, to $48 per user per year more for Microsoft 365 E3. In some cases, Microsoft is increasing prices to match those of the competition (read, Google), officials said. In other cases, it is adjusting prices to reflect the considerable value added to the Office 365/Microsoft 365 suites over the past several years, they added.
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Microsoft: New pricing for Microsoft 365

Today we are announcing changes to our commercial pricing for Microsoft 365—the first substantive pricing update since we launched Office 365 a decade ago. This updated pricing reflects the increased value we have delivered to our customers over the past 10 years.

Let’s take a look at some of the innovations we’ve delivered over the past decade in three key areas—communications and collaboration, security and compliance, and AI and automation—as well as the addition of audio conferencing capabilities that we’re announcing today.
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longshots · Aug 19, 2021

And why not. It's not as if they have any competition.

XIII · Aug 19, 2021

Phew: “There are no changes to pricing for education and consumer products at this time.”

(for now?)

guest · Nov 8, 2021

Microsoft 365 Monthly Pricing Backlash: Solution Providers Petition Against ‘Punitive’ Fee
November 8, 2021
https://www.crn.com/news/cloud/micr...ution-providers-petition-against-punitive-fee

An online petition launched by a solution provider CEO urges Microsoft to reconsider a 20 percent fee on monthly Microsoft 365 subscriptions that’s expected to take effect in March 2022, with the petition garnering more than 900 signatures so far.

Month-to-month subscriptions “have been an invaluable tool to help with cost reduction during COVID and other economic events. Adding an addition[al] 20 percent on these types of SKUs seems almost punitive in nature and, given the already 15 percent increase, is extreme,” the Change.org petition states.
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It goes on to say, “If this policy goes into effect, it will cause ripple effects with our vendors like Ingram, Synnex and Pax8 and many others, as they struggle to implement this change in their automatic procurement portals and try to handle the additional price change management. Help us make sure this increase doesn’t go into effect in 2022 by signing.”

The extra 20 percent fee on month-to-month Microsoft 365 subscriptions is set to take effect starting March 1, 2022, according to blog posts from distributors Ingram Micro and Pax8.
The 20 percent fee is in addition to the price increases on the Microsoft 365 productivity suite of up to 25 percent that were announced in August and that also begin March 1, according to the distributor blogs.
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While Microsoft said in a blog post that monthly term subscriptions will have “premium pricing” under the new commerce experience, the company did not mention the 20 percent monthly fee cited by Ingram Micro and Pax8.

Phil Walker, CEO of Manhattan Beach, Calif.-based Network Solutions Provider, said the conversations with customers around the new pricing approach will be difficult and likely to create “anxiety” for them. It puts the solution provider in the position of having to present two bad choices to customers: pay 20 percent more or run the risk of buying licenses that might not be needed, he said.
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