The Cost of Microsoft 365 Commercial is Going Up in 2022

Posted on August 19, 2021 by Paul Thurrott in Microsoft 365 with 18 Comments

Microsoft announced today that it will raise the cost of its Microsoft 365 Commercial subscriptions starting in March 2022. It is also adding some new audioconferencing capabilities in Teams to take your mind off the price hike.

“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,” Microsoft’s Jared Spataro revealed. “This updated pricing reflects the increased value we have delivered to our customers over the past ten years in three key areas—communications and collaboration, security and compliance, and AI and automation—as well as the addition of audioconferencing capabilities that we’re announcing today.”

Microsoft’s original post has a lot of information about all the value it has added to its Office 365 and Microsoft 365 subscriptions over the years, but all we really care about is the new pricing. It breaks down like so:

Microsoft 365 Business Basic is going up from $5 to $6 per user per month. Microsoft 365 Business Premium is going from $20 to $22, Office 365 E1 is going from $8 to $10, Office365 E3is going from $20 to $23, Office 365 E5 is going from $35 to $38, and Microsoft 365 E3 is going from $32 to $36. These changes will be effective March 1, 2022. And there are no changes to the pricing for education and consumer products at this time, Microsoft says.

As for the new stuff, Microsoft notes that Microsoft Teams now has over 250 million monthly active users and is “the new front-end across work, life, and learning” for those users. It has received over 300 new features since its launch in 2017, and it’s about to get some more.

“We will add unlimited dial-in capabilities for Teams meetings across our enterprise, business, frontline, and government suites over the next few months,” Mr. Spataro notes. “Even as cloud connectivity increases, we know that people join Teams meetings while they are on the go or struggling with a bad internet connection. Currently included with Microsoft 365 E5 and Office 365 E5, we have come to see dial-in as an important part of the complete Teams experience. Available with subscription in over 70 countries and with interactive support in 44 languages and dialects, unlimited dial-in provides peace of mind that users will be able to join their Teams meeting from virtually any device regardless of location.”

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Comments (18)

18 responses to “The Cost of Microsoft 365 Commercial is Going Up in 2022”

  1. lvthunder

    The dial-in number will be good news for our company. Did they say when the number will be available?

    My boss will complain about the price increase, but he thinks all these companies are just out to get as much money as they can.

    • lvthunder

      I bet the price increase is related in part by inflation the US is currently facing.

      • codymesh

        or just capitalism and the profit motive. But, what do I know lol.

        • anoldamigauser

          Yup, this feels like good ole greed. The margins on this are so large that it does not need to respond to price hikes, and, quite frankly, I doubt that Microsoft's costs are increasing like they are in retail and restaurants. That and customers are realizing that they will have a continuing need for these products and services, the price has been stable for some time...why not.

  2. ghostrider

    Ahh, the Cloud - the service that just keeps taking - it should be re-christened as RaaS - Revenue-as-a-Service, because that's only reason it exists. I like the way MS talk about all the beneifts Teams apparently brings before hitting you with the price increases. More billions for the MS coffers..

  3. mikegalos

    Wow. A 10% price increase over a decade. The horror.

  4. dougkinzinger

    For the folks who are a bit rattled by the price increase it's worth pointing out that Microsoft 365 Business Standard (formerly Office 365 Business Premium) pricing is staying the same, and it is a massive seller in the <300 seat organizations.

  5. vladimir

    Why not? Let's squeeze a bit all the small businesses that made so much money during the pandemic, during which microsoft financials have been suffering dramatically... I am fully aware of the motives of corporate ethics, but I still find this price increases pretty disgusting

  6. winner

    8 years ago, Microsoft: "Don't buy Chromebooks, you need the internet to use them!"

    Today, Microsoft: "Use the internet to store your data and run your programs! In fact, Windows 11 can't even be set up without the internet!"

  7. dspeterson

    With the inclusion of audio conferencing, this is actually a net savings for folks using audio conferencing today, which is nice (that's $4/month today).

  8. igor engelen

    Glad to see there's no increase on the family subscription.

  9. will

    Is the M365 E5 license going to stay the same?

    • bluvg

      According to Mary Jo, M365 E5 will not be increased. This might be one way of pushing companies towards M365 E5. Relatively pricey, but not really a bad value if you can take advantage of much of the functionality.

  10. dougkinzinger

    Thanks. Can we get the original post @ MSFT?

  11. wrscomputers

    So am I missing something, everything seems to be listed except for Microsoft Office 365 Standard is that price not going up or have they just change the name?

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