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Microsoft Plans and Pricing:
Changes Afoot in 2022!

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If you’re a Microsoft business user, pricing and plans are set to change from 1 March 2022. A thorough audit of your existing setup will benefit your budget going forward.

Did you know that Microsoft are changing their pricing? From March 1st 2022, subscription prices will rise for Microsoft Office 365. In this post, we’ll take a look at these upcoming developments, and think about the best way forward for you and your business.

What’s changing?

If you already have an Office 365 subscription or plan to get one, there will be a rise in subscription prices from March 1st 2022. Prices per user are already very reasonable, so in theory, small businesses won’t suffer too much. However, if your budget is limited or you have a larger team with licences for each of them, those increments can really add up.

The overarching rule is that the more you’re already paying for your Microsoft subscription, the smaller the increase you’ll be facing. So, Microsoft 365 Business Basic subscribers will be paying 20% more, rising from $5 to $6 per user. However, if you have a Business Premium subscription – which currently costs $20 per user – you’ll pay $22, so 10% more.

The same principle applies to Office 365 Enterprise. If you have the most basic subscription (E1), your price per user will go up 25%, from $8 to $10. E2 subscribers will pay 15% more: from $20 to $23. And E5 subscribers will pay $38 rather than $35 per user – a rise of 8.57%.

Finally, Microsoft 365 E3 subscribers, who currently pay $32 per user, will be paying $36. That’s an increase of 12.5%. There are no increases currently planned for either consumer or education subscribers.

Flexible month to month subscriptions

There will be greater price stability with new annual term subscriptions, as well as the option of multi-year billing plans. Those who want a flexible monthly subscription will still have that option, but will pay an additional 20% for the privilege. 

There will also be a new and more restrictive cancellation policy, making it harder to change your mind once you’ve made a purchase. And the new annual subscriptions cannot be adjusted up or down. So customers will have to choose between economy and flexibility.

So what next?

Whether you have a Microsoft Business subscription, an Enterprise subscription or a flexible monthly subscription through our IT service provider, things are going to change from March 1st 2022. It’s a good idea to audit your existing licences and check that you aren’t already paying for services you don’t need.

As your IT support partner, One Technology can review your licensing and make sure you have the best deal possible going forward. Just get in touch to talk over your requirements. We’ll be happy to help.