Microsoft 365 Price Increase - March 2022

microsoft 365 pricing update

Microsoft has announced a price increase across several of their commercial 365 products, including Microsoft 365 Business Basic, Microsoft 365 Business Premium, Office 365 E1, Office 365 E3, Office 365 E5, and Microsoft 365 E3, effective 1 March 2022. We expect Microsoft to confirm the new prices early February and state that they are bringing in these cost increases to reflect the added value they have introduced to their suite of products over the past few years. 

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At the same time, Microsoft is also changing the way MSPs must purchase commercial 365 licences which will have an impact on how companies budget for their Microsoft licensing moving forward. Effective 10 March 2022, there will be two ways in which MSPs can purchase licences:

Option 1 – to maintain your current licence cost (including the price increase mentioned above) you will need to contract a minimum number of licences for 12 months. You will be able to add more licences to your contract as you grow, however you will not be able to reduce the number of licences within the 12-month period.

Option 2 – if you require more flexibility to grow and reduce your number of licences at any given time you can opt for a rolling monthly contract so you can flex your licences each month. However, the pricing for flexible licensing will include an additional 20% premium on top of your current licence cost (including the price increase mentioned above). 

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