Microsoft announces price increase for Office 365 and Microsoft 365

Microsoft announced the first price increase for Office 365 and Microsoft 365 services in 10 years. The price increase will affect commercial and business users of Microsoft Software as a Service (SaaS) products over the next year with no price changes for educational or consumer use.

Microsoft’s updated pricing is effective March 1, 2022.

  • Microsoft 365 Business Basic ($5 to $6 per user)
  • Microsoft 365 Business Premium ($20-$22)
  • Office 365 E1 ($8 to $10)
  • Office 365 E3 ($20-$23)
  • Office 365 E5 ($35-$38)
  • Microsoft 365 E3 ($32 to $36)

Microsoft first launched Office 365 in 40 markets in 2011 and has been improving ever since. Jared Spataro, head of Microsoft 365, explains in a blog post today that these price changes are “the first substantial price update since we launched Office 365 10 years ago.”

This is also because Microsoft is reporting record revenue growth thanks to cloud services like Office 365. Since Microsoft has more than 300 million paying users for Office 365, price fluctuations will certainly further boost Microsoft’s profits and revenues next year.

Large corporations have benefited from bulk discounts and deals over the past decade, but it is small businesses that are feeling the impact of price increases as the economy begins to recover from the pandemic. Either way, Microsoft has added over 20 apps since Office 365 was first released, including Microsoft Teams, OneDrive, SharePoint, and To-Do.


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