Microsoft has announced a price increase for its Office 365 and Microsoft 365 services. The price increase will affect commercial and business users of Microsoft’s software and will take effect on March 1, 2022.
In Microsoft’s blog post announcing the higher prices, vice president for Microsoft 365 Jared Spataro stated:
“The first substantive pricing update since we launched Office 365 a decade ago. This updated pricing reflects the increased value we have delivered to our customers over the past ten years.
Since its launch a decade ago, Office 365 has grown to over 300 million commercial paid seats. Along the way, we have continuously re-invested to meet the changing needs of our customers. Four years ago, we introduced Microsoft 365 to bring together the best of Office, Windows, and Enterprise Mobility and Security (EMS). That same year we added Microsoft Teams as the only integrated solution where you can meet, chat, call, collaborate, and automate business processes—right in the flow of work.
In fact, since introducing Microsoft 365 we have added 24 apps1 to the suites—Microsoft Teams, Power Apps, Power BI, Power Automate, Stream, Planner, Visio, OneDrive, Yammer, and Whiteboard—and have released over 1,400 new features and capabilities in three key areas.
- Communication and collaboration. Microsoft Teams is the new front end across work, life, and learning for more than 250 million monthly active users. We launched Teams in 2017 as the only integrated solution where you can meet, chat, call, collaborate, and automate business processes with the power of the Office apps all within the flow of work. In 2020 alone we released over 300 new capabilities including Together mode, background effects, large gallery view, raise hand, live reactions, breakout rooms, live captions with speaker attribution, and Fluid components, just to name a few.
- Security and compliance. The cybersecurity landscape is more complex than ever. With the accelerating volume, sophistication, and scale of cyberattacks, security and compliance are a priority for every organization. Since we first introduced Microsoft 365, we have added new attack surface reduction capabilities to help organizations defend against ransomware and other threats. We have added capabilities like data loss prevention (DLP) for email and documents, sensitivity labels, and message encryption to help keep important data within the organization. And we have added powerful compliance capabilities that help organizations reduce risk and respond to increasing regulatory requirements such as Content Search, eDiscovery, and core Litigation Hold.
- AI and automation. Over the past decade, we have infused AI capabilities across our productivity and collaboration applications to help everyone achieve more. Across Microsoft 365, we have introduced AI-powered innovations to help users be better writers, designers, and presenters. Cloud-powered AI now automatically creates maps, charts, and tables in Excel, and sorts email and removes clutter in Outlook. And AI-powered real-time translation, captions, and transcription make collaboration and communication more accessible and engaging for everyone.”
Tycom are working with Microsoft to understand the full implications of these planned increases and will be re-evaluating your current Microsoft 365 plan to ensure your business is on the most economical subscription moving forward from March 2022.