Microsoft Prices Going Up? Here’s What You Need to Know

Prices are changing. Make sure you're ready for the upcoming price increase for various Microsoft apps and services.
Microsoft Prices Going Up? Here’s What You Need to Know

Microsoft has announced that its prices for various Microsoft SKUs are going up:

  • Microsoft 365 Business Basic, Microsoft 365 Business Premium, Microsoft 365 E3, Office 365 E1, Office 365 E3, Office 365 E5, and Microsoft 365 E5 pricing are all increasing.
  • All monthly terms for Microsoft 365, Dynamics 365, Windows 365, and Power Platform SKUs will experience a 20% pricing premium due to the implementation of NCE.

The good news is that there are ways to keep your costs down, and we’ll show you how.

If you're a Microsoft partner or customer, then you need to read this post carefully. Microsoft prices are increasing, and the changes are coming into effect very soon. In this post, we'll take a look at why the price increases are happening and what you need to do to stay ahead of the curve. Stay tuned – we'll be updating this post as more information becomes available!

Microsoft prices are changing, and it’s important to stay ahead of the curve. Microsoft has announced price changes for a variety of software and suites, effective February 28th. If you’re a Microsoft partner or someone looking to purchase Microsoft apps, these changes could have a big impact on your business.

Microsoft price increase on March 1st

There are two major price hikes to be aware of. The above-mentioned six licenses are affected by the March price hike. All Microsoft 365, Dynamics 365, Windows 365, and Power Platform NCE SKUs are affected by the NCE increase, but only if you pick a monthly commitment period.

In March 2022, some Microsoft 365 Business and Office 365 Enterprise subscriptions will be changed. Depending on your plan, the increase will vary from $1 per user per month to $4 per user per month.

The following plans are affected by the Microsoft price increase coming this March:

  • Microsoft 365 Business Basic: Increasing from $5 to $6 per user (+$1)
  • Microsoft 365 Business Premium: Increasing from $20 to $22 per user (+$2)
  • Office 365 E1: Increasing from $8 to $10 per user (+$2)
  • Office 365 E3: Increasing from $20 to $23 per user (+$3)
  • Office 365 E5: Increasing from $35 to $38 per user (+$3)
  • Microsoft 365 E3: Increasing from $32 to $36 per user (+$4)

Note: All prices are shown in USD.

As you can see, this price hike is mostly aimed at commercial clients, albeit some will be exempt. For example, Microsoft 365 Business Standard subscriptions will not see a price rise as a result of this adjustment.

Why are Microsoft prices increasing?

There are several reasons why Microsoft is increasing prices.


The first and most significant reason for this increase in cost comes from the post-pandemic inflation that the United States has been experiencing. Recent outbreaks are causing increased costs across all industries, particularly technology companies that produce software or hardware.

Security needs are another cause for the hike in costs. Operating online has become increasingly perilous over time.

For example, phishing attempts climbed by approximately 280% per month in May and June of 2021. As cyber threats continue to increase, data privacy requirements for firms have become more important and costly. Microsoft is required to protect the data that companies acquire from both employees and consumers.

Collaboration and communication

Microsoft Teams has been a focus for Microsoft in recent years. The platform has received a lot of time and attention from the company. This is because it has many features, including the ability to function as a full VoIP business phone system and webinar service.

Another improvement recently added is the ability to use Teams for registration activities, like those seen in an app like GoToWebinar. These features have come without any price increase until now.

Automation and AI technology

The Microsoft user experience is filled with time-saving and cost-reducing tools like AI, automation, predictive text in Word or Outlook. A great example is the use of data types within Excel combined with predictions and complex calculations. PowerPoint also comes with powerful AI features that help presenters better prepare before going live on stage.

These are just a few instances of how artificial intelligence is used in Microsoft products. These features are powerful productivity enhancers that are meant to make repetitive chores easier and faster. Microsoft intends to incorporate more AI and automation in the future, which is one of the reasons for the need to raise pricing today.

Microsoft price increase FAQ

Q: When is the Microsoft price increase happening?

Microsoft will update the list pricing for all programs and services that will be affected by the upcoming price rise on March 1, 2022. Subsequently, all resellers and online stores will adjust pricing according to the new list.

Q: Are all Microsoft products affected by the March 2022 prince increase?

Not all applications and services are affected by the Microsoft price increase. You’ll only see changes in the following commercial products: Microsoft 365 Business Basic and Premium, Office 365 E1, E3, and E5, as well as Microsoft 365 E3. These changes will be implemented globally, with certain regional market changes.

Q: How much is the Microsoft price increase in 2022?

Depending on the plan, the increase will vary from $1 per user per month to $4 per user per month. The article above provides a thorough analysis.

Final thoughts

Microsoft is making some changes to its pricing model, and the details are still being finalized. We’ll update you as soon as we know more. In the meantime, be sure to start preparing by checking your current licenses and subscriptions!

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