Microsoft delays Office 365 price rise once again
First substantial price increase since Office 365’s launch has been postponed
When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
Microsofthas once again delayed its planned price increase of both itsOffice 365and Microsoft 365office softwaresuites.
The price increase was first announced by corporate VP for Microsoft 365, Jared Spataro last August in ablog postand was set to come into effect at the beginning of this month. Now though, the software giant has pushed back the change until March 15.
Right when the price increase was set to go into effect, Microsoft announced a set of temporary discounts for cloud service providers (CSPs) that sell Office 365 and Microsoft 365 subscriptions. CSPs currently have until 5pm PDT on March 14 or 12am UTC on March 15 to submit transactions and have them invoiced at the company’s February 2022 pricing.
These temporary discounts are designed to allow CSPs “to clear the backlog of orders for these SKUs due to high demand in advance of the March 1 price increases” according to aMicrosoft support document.
First substantive price increase
For those unfamiliar with Microsoft’s pricing changes for both Office 365 and Microsoft 365, Microsoft 365 Business Basic will increase from $5 to $6 per user per year, Microsoft 365 Business Premium will go from $20 to $22, Office 365 E1 will go from $8 to $10, Office 365 E3 will go from $20 to $23, Office 365 E5 will go from $35 to $38 and Microsoft 365 E3 will go from $32 to $36.
Thankfully though, these pricing changes do not apply to the company’s consumer or education products.
Microsoft Office 365 is getting a handy upgrade that will streamline your workflow
Microsoft 365 update will make sure no one is at a disadvantage
Microsoft Defender for Office 365 is taking no chances with dodgy attachments
Back in August of last year, Spataro pointed to the fact that these pricing changes were the “first substantive pricing update” to Office 365 since its launch just over a decade ago. He also highlighted how the company has added 24 apps includingMicrosoft Teams, Power Apps, Power BI, Power Automate, Stream, Planner, Visio,OneDrive, Yammer, andWhiteboardto the software suite and released 1,400 new features and capabilities across three key areas: communication and collaboration, security and compliance andAIand automation.
Are you a pro? Subscribe to our newsletter
Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed!
According toThe Register, Microsoft’s revenues grew by a fifth to $51.7bn during the second fiscal quarter of this year while operating income increased by 24 percent from $17.89bn to $22.2bn. However, the company’sMicrosoft Azurecloud services and its server products have been the main drivers of its higher revenue recently. As such, Microsoft’s Productivity and Business Processes segment, which includes Office 365, will need to bring in additional revenue to keep up with the company’s other divisions.
ViaThe Register
After working with the TechRadar Pro team for the last several years, Anthony is now the security and networking editor at Tom’s Guide where he covers everything from data breaches and ransomware gangs to the best way to cover your whole home or business with Wi-Fi. When not writing, you can find him tinkering with PCs and game consoles, managing cables and upgrading his smart home.
7 myths about email security everyone should stop believing
Best Usenet client of 2024
NYT Strands today — hints, answers and spangram for Sunday, November 10 (game #252)
