Last year, Microsoft quietly announced that from 1 March 2022, prices for Microsoft 365 will be rising. The first significant rise in over a decade. The change affects all but 1 of Microsoft 365’s subscription plans (E5, their most expensive offering, is untouched for now). Microsoft have written an extensive post here explaining all of their value adds and new apps in Microsoft 365 over the years.

Only at the very end of the post is the reader informed about the incoming price changes. It reads, that on average Microsoft 365 Products will be increasing anywhere from 8.5% to 20% depending on which product you have. Understandably, this has caused an outcry of dissatisfaction, as many businesses are utilising only a few of the new apps now bundled in with the full plans. Not to say Microsoft haven’t done some true value adds though, the best example of this being Microsoft Teams – an invaluable addition in these recent times.

Why now?

The strategic 20% premium being added to all monthly subscriptions from July onwards is an attempt to push customers towards Microsoft’s annual plans. Unfortunately, businesses hurt the most by this change will be small to medium sized enterprises, with larger businesses remaining unaffected. Microsoft subscribers on monthly terms will ultimately be forced to lock in licenses for a year or shell out extra each month to keep their flexibility.

Make the best choice for your business.

With only a couple of months until this change, now is the time to have a think about your Microsoft subscriptions. More specifically, evaluate if each user is fully utilising the subscription level you are paying for. Are you prepared to move to an annual subscription? Or do you need the flexibility a monthly term offers at a price premium?

Looking for an alternative?

Due to Microsoft’s strong presence in the productivity suite market with Office, businesses may look for alternatives. Given the competition though, they may be hard pressed to find one as feature packed and fleshed out as Microsoft’s Office Suite.

For our valued Altitude Innovations clients, we will be reaching out in the coming weeks to work with you on this. If you are not currently a client of Altitude Innovations and are looking to optimise and extract the most value from your Microsoft Subscriptions then get in touch today for assistance with navigating the upcoming price rise.