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Microsoft Jacks Up Software Subscription Rates

Microsoft is hiking prices on its 365 subscription services for business and commercial customers.

While consumer and education users will escape the increases for now, prices for business and enterprise versions of Microsoft 365 and Office 365 will go up as of March 1.

According to Jared Spataro, Corporate Vice President for Microsoft 365, these new prices reflect a decade of innovation in the software.

“Today we are announcing changes to our commercial pricing for Microsoft 365 – the first substantive pricing update since we launched Office 365 a decade ago.

“This updated pricing reflects the increased value we have delivered to our customers over the past 10 years,” he said.

Prices will increase globally as follows, with local adjustments for certain regions (prices per user per month in USD):

  • Microsoft 365 Business Basic from $5 to $6
  • Microsoft 365 Business Premium from $20 to $22
  • Office 365 E1 from $8 to $10
  • Office 365 E3 from $20 to $23
  • Office 365 E5 from $35 to $38
  • Microsoft 365 E3 from $32 to $36

Microsoft is also updating Teams with unlimited dial-in capabilities across enterprise, business, frontline, and government suites. Office 365 currently serves more than 300 million paid commercial seats.

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