Microsoft 365 Pricing Increase Coming in March
Mar 25, 2022

Microsoft 365 Pricing Increase Coming in March

Microsoft will be increasing the price of Microsoft 365 (formerly Office 365) in March.

It’s the first big price rise for a decade. And youcan expect to pay around 20 to 40 per cent more.

In fact, it’s not just a price increase. Microsoft’salso changing the way it sells 365. It’s a complicated situation and there’sbound to be some short-term pain as we all get used to it.

Here are the basic details. You should talk to your ITsupport partner over the next few weeks to see exactly how it’s going to affectyour business.

From March you’ll have a choice of sticking with therolling month by month contract and swallowing the price increase. Or you cancommit to a 12 month agreement.

The big benefit of an agreement is that it’ll lockyour current pricing for a year. But there’s a downside – you’ll loseflexibility.

During your contract you can increase the number of licensesyou use… but you can’t decrease them.

In real terms, that means if you take on more staff,it won’t be a problem to give them access to the essential business tools theyneed.

But if your headcount goes down for any reason, you’llhave to pay for the 365 licenses you no longer need.

You also won’t be able to move your Microsoftlicensing to another IT support company during that contract.

The other option then, is to have a monthly rollingcontract. You can add or remove licenses as needed, but overall, the price willbe higher. For some businesses, that flexibility will be worth paying extra for,and better value long-term.

It’s worth thinking through your plans for the next 15months before deciding.

If you want to talk through which option’s going to bebest for you, do give us a call.

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