


In an article for Microsoft, Spataro details how Microsoft’s productivity suites have improved over the years, without hiking prices.

risks of signing up for multi-year plans that will reduce flexibility and increase your commitment to MicrosoftĪccording to Jared Spataro, Corporate Vice President for Microsoft 365, this is the first time Microsoft has increased its prices since 2011. Review spend and understand what you’re being billed for each month.Choose the right SKU for your needs (such as Microsoft 365 Business for organizations under 300 seats).Reduce costs by removing unused licenses (such as having an E3/E5 assigned to a terminated employee account).Optimize your monthly subscriptions (including underutilized technology included in the licenses).Assess your licensing situation with a trusted Microsoft Partner.Tenant administrators need to pay attention to these license management changes, as there’s never been a better time to: But if you’re a larger organization with 1,000 users a month, that $3 can translate into a much more significant $36,000 in additional costs each year. Ultimately, an increase of $3 per month, per user, might not seem like much. After March 1, 2022, customers will have to renew their subscriptions at the new price. Important to note: You will be affected by these changes whether you’re a Cloud Solution Provider (CSP) customer, a Volume License Agreement customer (such as Enterprise Agreement), or a Web Direct customer.ĬSP and Web Direct customers can switch from monthly plans to annual contracts to lock in the old pricing for the next year, though you’ll need to act fast. Specifically, here are the products that will be affected, as well as the percent change for each product: Plan Recently, Microsoft announced that, effective March 1, 2022, subscription prices for its Office 365 and Microsoft 365 products will increase, due to the accumulated additional value Microsoft has added to its products over the past decade.
