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:
Enterprise
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.
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.