Close up of an Microsoft Office app on a screen

Price increase for Microsoft 365 coming next year

On 19 August 2021, Microsoft announced that commercial pricing for several of their widely-used Microsoft 365 (M365) subscriptions would be increasing.

It is the first price increase to these products in a decade. Microsoft released a statement to explain that the increases reflect the ongoing improvement and investment they make in the 365 platform.

Non-profit and academic subscriptions remain unchanged in this round of price increases.

The price increase comes into effect on 1 March 2022 and will include the following subscriptions:

Microsoft 365 E3  (12.5% increase)
Microsoft 365 E5 (8.5% increase)
Microsoft 365 E3 (15% increase)
Microsoft 365 E1 (25% increase)

Small Business
Microsoft 365 Business Basic (31.8% increase)
Microsoft 365 Business Premium (10% increase)
All pricing is per user per month.

Is it possible to fix the current 365 Prices?

Microsoft are changing their commercial model to fix current pricing if customer commit to a one- or three-year term (depending on your plan) if renewed before 1 March 2022. The terms of the annual commitment do not permit reducing subscriptions below the initial quantity and the total count may only be reduced in 72 hour window at the end of the initial commitment term. 

James Naylor

James Naylor is ITbuilder's Managing Director and Founder. He has worked in technology since the early nineties and, after a decade in the corporate world, went into business himself.

James has lead ITbuilder for over two decades, building the business into the force that it is today, but is still a technician at heart and still very hands on with tech.

Despite growing up in Hertfordshire, James lives in the Netherlands for five years as well as London, before returning and setting up the base in Hertford, where he lives today.

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