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Microsoft 365 Price Increase

January 21, 2022

Microsoft 365 Price Increase

Microsoft 365 Commercial License Price Increases

What: Effective March 1, 2022 Microsoft 365 commercial licenses will increase in price – from 8.5% to 25%.

Effective June 30, 2022 Microsoft's New Commerce Experience (NCE) is "strongly encouraging" customers to move away from monthly term subscriptions by implementing a 20% pricing premium for clients still using month-to-month terms. This is in addition to the Microsoft 365 commercial license price increases scheduled for March 1st detailed below. There is an easy way to avoid this premium. Customers should consider annual or multi-year commitments. These commitments can be paid monthly or annually and are not subject to the 20% premium.

Knowing your renewal date is important to be prepared. You can find your renewal date by following Microsoft's instructions here. Or just reach out to your Zephyr Networks Team for assistance.

Why: Since 2017, when Microsoft 365 was introduced, Microsoft has added 24 applications and 1400 features to its Microsoft 365 product line.  Improvements include:

  • Collaboration and communication
  • Security and compliance
  • AI and automation

According to Microsoft, these upgrades justify commercial license pricing increases.

For Microsoft 365 customers, Microsoft is incentivizing clients to commit to longer term subscription commitments. According to Microsoft, "the month-to-month subscription provides greater flexibility at a higher monthly cost".

How: If you are a commercial Microsoft license holder (educational and individual licenses are not affected), per user prices will increase on March 1, 2022 as follows:

PRODUCTOld PriceNew PriceIncrease
Business Basic$5$620%
Business Premium$20$2210%
Office 365 E1$8$1025%
Office 365 E3$20$2315%
Office 365 E5$35$388.5%
Microsoft 365 E3$32$3612.5%

As a Microsoft 365 month-to-month subscription customer, subscription costs will increase 20% effective June 30, 2022. This is on top of the increases for products listed above. You can eliminate the 20% increase by committing to an annual or 3-year subscription (which can be paid upfront, annually or monthly).

Microsoft 365 Commercial License Price Increases

Existing Zephyr Networks clients should reach out to their Zephyr Networks team to determine:

  • Which Microsoft subscription they have
  • How they can optimize their spend on Microsoft products

If you are not a current Zephyr Networks client, Zephyr Networks is available to assist with your Microsoft product evaluation and cost analysis

Get Ahead of the Impending Microsoft 365 changes

In order to maximize your dollars for your Microsoft 365 investment you will need to act quickly and be willing to commit to 1 year. If you commit or renew before March 1st for a one year commitment, Microsoft will honor the current rate until 2023. For a company using 50 Office 365 E3 licenses with a month to month renewal, you would save $1800 and avoid the 20% penalty for month to month accounts saving you even more.

Zephyr Networks Solutions

Zephyr Networks has proven expertise in assisting small and medium businesses with IT decisions.  With offerings such as “Cloud Solutions” and “Technology Success Partnerships”, Zephyr Networks teams with your IT personnel to provide top level service and reduced IT risks.

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