Upcoming Microsoft 365 License Price & Subscription Changes

Microsoft To Adjust Pricing & Subscription Options for Licenses In March 2022

We don’t often write about licensing and subscription terms, it isn’t a topic most find very interesting. However, the recent developments from Microsoft will affect how small businesses purchase and budget for Microsoft 365 licenses.

Microsoft recently announced a global price increase for a selection of Microsoft 365 product licenses. This change is paired with a change to how Microsoft 365 subscriptions work. These changes will take effect March 1, 2022 and will be the same whether purchases are made through a Cloud Services Provider like The Purple Guys or purchased from Microsoft directly. We are receiving new information from Microsoft regularly and will continue to provide updates when more details become available.

Details & Dates:

Price increases expected for March 1st, 2022:

Office 365 E1: 25%
Office 365 E3: 15%
Office 365 E5: 9%

Microsoft 365 E3: 12.5%
Microsoft 365 Business Basic: 20%
Microsoft 365 Business Premium: 10%

Subscription Model Changes:

On March 1st of 2022, Microsoft will require a 1 year commitment for new licenses to secure the prices outlined above. Monthly payment options for annual subscriptions will still be available. Microsoft is placing a greater focus on an annual subscription for a number of committed “seats”.  There will likely be some ability to change license types and add seats within the same license period. We will provide an update regarding annual license flexibility once it is announced by Microsoft.

Monthly subscriptions will remain available, however, they will be subject to a 20% premium on top of any other price increases. This provides flexibility to those organizations that require licensing fluctuation throughout the year. For those that choose an annual commitment, new licenses can be added at any time. However, there is no option to remove or reduce licenses that are part of a 1 year commitment.

Microsoft is in the process of finalizing the program details, we will update this page as new information becomes available.

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