Microsoft 365 Pricing and Everything You Need to Know

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m365 pricing
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Microsoft recently released several updates to their commercial M365 pricing. The price changes should take effect on March 1, 2022, and will update the price list for:

Microsoft Plan

Price Increase (Per User)

Microsoft 365 Business Basic

$5 to $6

Microsoft 365 Business Premium

$20 to $22

Office 365 E1

$8 to $10

Office 365 E3

$20 to $23

Office 365 E5

$35 to $38

Microsoft 365 E3

$32 to $36

The higher costs will apply worldwide but will only affect specific business and commercial releases, not consumer education or subscriptions at this time, the company said. Since launching Microsoft 365 four years ago, Microsoft has added 24 apps to the suite, including Microsoft Teams, Power Apps, Power BI, Power Automate, Stream, Planner, Visio, OneDrive, Yammer, and Whiteboard.

Furthermore, the company launched 1,400 new features in three key areas. In terms of communication and collaboration, Microsoft introduced its Teams software in 2017 as its all-in-one product for chatting, calling, and managing projects and tasks.

In 2020, as the coronavirus pandemic forced organizations to work remotely, Tims received more than 300 new features, including Together mode, background effects, large gallery display, hands-on, live reactions, and hacking rooms.

What is Microsoft 365 trying to achieve?

Microsoft is trying to entice businesses to spend more to save more. Price increases will be smaller on bundles of more complete (and more expensive) packages, closing the price gap between Office 365 and Microsoft 365 and closing them down. It will make higher levels of support more attractive.

Justification for the M365 pricing

Microsoft first launched Office 365 in 2011 in 40 different markets and Microsoft 365 in 2017, and the company has been improving it ever since. According to Microsoft Corporate Vice President Jared Spataro, this updated price reflects the increased value the company has delivered to customers over the past ten years.

Since launching Microsoft 365, Microsoft has added 24 applications to the suite, including Microsoft Teams, Power BI, Power Apps, Yammer, Power Automate, Planner, Visio, Stream, OneDrive, and Whiteboard. In addition, the company announced more than 1,400 new features in three key areas:

  • Collaboration and Communication

In terms of communication and collaboration, Microsoft introduced its Teams software in 2017 as the only integrated solution for chatting, meeting, calling, collaborating, automating business processes, and managing projects and tasks – with the power of Office applications – all within the workflow.

Innovations in artificial intelligence in productivity and shared applications of Microsoft 365 allow users to achieve more. At the same time, real-time translation, subtitling, and artificial intelligence-enabled transcription make collaboration and communication more accessible and engaging.

  • Compliance and Security

Looking at security, Microsoft said it had added new capabilities to reduce the area of ​​attacks on Microsoft 365 to help organizations and businesses defend themselves against software and an advanced threat. Threat protection is a must, no matter the windows version you are using.

These features include sensitivity tags, message encryption, and data loss prevention (DLP) for emails and documents. In contrast, the powerful Microsoft 365 Compliance features help organizations reduce risk and respond to increased regulatory requirements.

  • Unlimited Dial-In Capabilities

The move is designed to help people call and join Team Meetings when on the go or struggling with a lousy internet connection from almost any device, regardless of location.

It will allow users to get a dialing number and use teams as a bridge for conferences without downloading the application and joining a meeting online. This great feature will be available with subscriptions in over 70 countries and interactive support in 44 languages and dialects.

How can I reduce my m365 pricing?

If your organization wants to reduce the fat in your IT budget, there are several options for m365 pricing:

Buy standalone versions of office software

Standalone versions are an option, but not enough for businesses that want to innovate and start their digital transformation journey.

Use the online version of Microsoft 365

Choosing to use the free version certainly reduces costs, but it does not work for companies that want to scale.

Move to another cloud-based Office suite

You can always take your business standard elsewhere, but very few tools are so adept at Microsoft Office regarding remote and asynchronous communication.

Yes, I said they are options, not that they are good options. Okay, no more games. The best thing you can do to reduce costs is:

Find a cost optimization partner

Working with a partner, especially a Microsoft-certified partner such as Crayon, is your best option for reducing IT costs while ensuring that the property is optimized. The partners have decades of Microsoft expertise and licensing knowledge.

Recovery cost protection

Some companies have negotiated price protection for the renewal period in their contracts, limiting how sellers can raise prices.

Unfortunately, most companies do not have that protection, so when their current contract discount expires, they are exposed to the double blow of the cost-of-price return – and that rising price.

Yet, the price will not be the first thing discussed, and Microsoft is likely to start talking about all the different applications and values ​​of Microsoft 365 over the years.

But ask yourself, do you and your colleagues use the included apps and services like Stream, Planner, Delve, Kaizala, Sway and Yammer every day or ever?

Having detailed, granular information about the features your organization uses is essential to getting back into the negotiations. Press your organization to watch, employee by employee, how it works at the feature level in each subscription.

Conclusion on m365 pricing

Microsoft explicitly changes the commercial pricing for Microsoft 365 and Office 365 plans, affecting most businesses and business plans. Consumer prices do not change at all, so if you subscribe to the service in person, you will not see any change in your monthly or annual Microsoft account.

Also, education prices, the relatively recent F-Series for first-line workers, and Microsoft’s most expensive, comprehensive subscription plan, the Microsoft 365 E5, which sells for $ 57 per user per month, will not increase. With the current global situation causing many people to work from home, Microsoft 365 has become an essentially immediate product.

Unfortunately, Microsoft decided to increase the prices of several subscriptions to M365 business and O365 in March 2022, with the most significant increase of 25%. The M365 pricing will be the first substantial price update in a decade.