News & Blog

Microsoft 365 prices to increase by 20% – March 1st 2022

Microsoft has told managed service providers (MSPs) that it will charge a 20% premium on Microsoft 365 products unless customers choose to be billed annually.

Microsoft 365 prices to soar by 20% for pay monthly subscribers

Microsoft has told managed service providers (MSPs) that it will charge a 20% premium on Microsoft 365 products unless customers choose to be billed annually. The news comes as prices for individual products are also set to be increased too by a margin of up to 15% each. Coming into effect 1st of March 2022, Microsoft’s New Commerce Experience (NCE) will increase the prices of Microsoft 365 Business Basic, Microsoft 365 Business Premium, Office 365 E1, Office 365 E3, Office 365 E5, and Microsoft 365 E3.

When is the Microsoft 365 Price Increase Happening?

The price increase will go into effect on March 1, 2022

Impact on Plans

  • Microsoft 365 Business Basic: Going from $5 to $6 per user (+$1)
  • Microsoft 365 Business Premium: Going from $20 to $22 per user (+$2)
  • Office 365 E1: Going from $8 to $10 per user (+$2)
  • Office 365 E3: Going from $20 to $23 per user (+$3)
  • Office 365 E5: Going from $35 to $38 per user (+$3)
  • Microsoft 365 E3: Going from $32 to $36 per user (+$4)

Office 365 Price Increases For the Not For Profit Sector

On 1st Sept. ’22, these nonprofit price updates will go into effect:

  • Enterprise: Office 365 E1: $2.50 (from $2), 
  • Office 365 E3: $5.75 (from $4.50)
  • Office 365 E5: $15.20 (from $14)
  • Office365 Microsoft 365 E3: $9 (from $8)

Why the new Microsoft 365 price increase

Microsoft seems to be using its market dominance to force some of the monthly paying customers of its office suite into a rather big decision. Pay 20% more or commit to a longer annual subscription.

Lock them in for longer- For Microsoft possibly the opportunity to lock their customers into longer arrangements will mean better visibility into revenue and reduce the likelihood for client churn.

Larger organisations may be able to take the hit of annual payments however some smaller organisations that are possibly trying to preserve cash as they manage to deal with the challenges of the pandemic will be frustrated by the changing price model, on top of the price increase announced in August 2021 for Microsoft 365.

This also comes at a time when Covid 19 has pushed many organisations to the Cloud quicker than planned. Many organisations will be entering 2022 frustrated and angry at the recent Microsoft announcements.

Wherever You Are on Your Cloud Journey We Can Help

Covid 19 has pushed many organisations to the Cloud quicker than planned. Now it’s time to review how it is working and what you are paying? Are you paying for unnecessary licenses and storage?

We can help Reduce Office 365 Costs and Protect your data. Waterford Technologies Mailmeter Email Archiving Solution for Office 365 offers a cloud-based archive for storing all email. It is designed to help Office 365 customers mitigate the risk of moving their email infrastructure to the cloud.

MailMeter Cloud is a cost-effective add on to your current O365 subscription and an alternative to the E3 and E5 plans without the requirement for expensive compliance add ons. Use the licenses you have and only change when you need to.

Here are a few ways that we reduce the cost of Microsoft 365-

  • Removing Redundant Mailboxes
  • Lowering Storage Costs in Office 365
  • Avoid Upgrades to Higher 0365 Plans & Additional Advanced Compliance
  • Stop Over Licencing or Mis Licensing
  • Eliminate Shared Mailboxes
  • No Requirement for Microsoft Administrators or Training

Click here to discover more on how we create Microsoft 365 cost savings to make your IT budget go further.

Benefits of using MailMeter.

  • Firstly, as shown above, huge cost savings.
  • No impact on email accessibility.
  • Archived email data through MailMeter remain just as visible and accessible. If end-users need emails back, they have instant access.
  • Fully Managed- Cut the cost of management and free up your IT.
  • Our fully automated archiving service is simple to manage and highly scalable. There is no need for end-user training, set up like outlook.
  • Manage all through a single dashboard.
  • Simple eDiscovery for data regulation such as FOI, GDPR, and legal requirements.
  • Our solutions allow you to manage 90% of all searches in less than 10 minutes, for anything more, our managed service eDiscovery experts are just a local call away.

“Waterford technology is considerably faster at searching emails as opposed to the in-built search within outlook, and that is the most important thing when searching emails …. speed. MailMeter is very popular here. MailMeter delivers back searches in a matter of seconds, and that is the most important factor to me and MailMeter users.” Liam Sinnott IT Manager, The Health Research Board

The increase is global, being adjusted for each currency. The plans being impacted are as follows: