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Microsoft is increasing 365 prices. Here is what you need to know.

Microsoft is increasing 365 prices. Here is what you need to know.

It has been at least ten years since Microsoft increased its pricing for their Microsoft 365 suite of products. An increase that was long overdue for the business.

In this context, Microsoft’s recent announcement that prices are rising by 20 per cent for Microsoft 365 is no surprise. But now that the changes are coming, what can you do about it? Here is everything you need to know.

What is the current situation?

Microsoft 365 price increase

To date, we have only seen the proposed US price increases, and for anyone that currently has a Microsoft 365 subscription and does nothing, the price is going to jump by around 20 percent on March 1 2022.

The basic business licence will increase by $1, while business premium will increase by $2. Although these increases might not sound much, per user these numbers soon add up.

Microsoft’s existing model does not offer any kind of discount on licences for larger organisations. So, a company with 1,000 licences pays the same per licence as a single user.

Currently, the only way for a larger organisation to secure lower prices is to enter into a fairly strict ‘Enterprise Agreement’ with Microsoft. This allows you to lock in prices for three years. But it also requires everyone in the organisation to have the same, fully licensed, up-to-date Microsoft products. It is a one-size-fits-all option that doesn’t always work for some companies.

What can you do to avoid extra costs?

Here is our advice on what you need to do before the cost increases.

Early in 2022, we suggest that you take out a brand new Microsoft 365 subscription for the products that you have in your organisation.

Then, move all of those users from the old licences to the new ones that you have just signed up for. Get this done before March 1 and you will then be able to enjoy the pre-increase prices locked in for another 12 months.

Microsoft 365 backup

Is that hard to do?

This can be complex and time-consuming – so it makes sense for you to get a trusted partner like virtualDCS to help you through the process. That way, you will see no disruption for your users whatsoever. Simply get in touch with us and we will do the rest.

Crucially, this doesn’t mean that you will be paying for two subscriptions, you will now be paying monthly for your licences through the new one instead. The subscription model is simply a way of locking in the price that you pay each month.

Are these products and services still worth the extra investment?

There’s no getting away from the 20 per cent rise. In March 2023, the price will go up and even your new subscription will have run out. For now, the best you can do is postpone it with our help.

So why stick with Microsoft? Well, we believe that even with the price rises, it still represents the best value. Microsoft Office 365 is now also the industry standard: everyone knows how to interact with their products and understands their document formats.

It is the most commonly used and understood solution, with no alternatives that won’t require a huge upheaval in terms of logistics, re-training and lost functionality. We don’t believe that any of those alternatives – of which Google is the only true competitor – offer the same service and experience.

In addition to this, we believe that Microsoft’s products have also improved substantially since the last price rise. There are many more features and with more of us working from home now, this price increase feels fair.

The bottom line? The price increase will happen, but you can still get 12 more months at the old price if you take action.

Need some help?

CloudCover 365 - Microsoft 365 backupLet us manage your licences and make keeping your current pricing plan a bit easier.

We will hold a licence review with you, tying your prices in for the next 12 months. As a direct Microsoft partner, we may even be cheaper than the price you are currently paying – especially if you have a high volume of licences.

In addition, we also recommend that you ask us about our CloudCover 365 solution.

A common misconception is that Microsoft is responsible for your data, which they are not. CloudCover 365 is our Microsoft 365 backup solution that allows users to quickly retrieve any deleted data on Microsoft 365 mailboxes, emails, files or sites. This saves you time and any potential exposure to legal penalties or costs in the future.

Call us today on +44 (0)3453 888 327 to discuss your specific needs or email enquiries@virtualDCS.co.uk