Office 365 price warning for all Australians

The prices of Office 365 Home and Personal go up in Australia. Only four days from now on Thursday 12 October 2017. Now’s the time to save before Microsoft grabs more money.

The price increase hasn’t been widely reported and Microsoft Australia is keeping important details to themselves.  Here’s what we know and how you can save by acting now.

Office 365 Personal up $10

Office 365 Personal going up by 11%.   The current price is AUD$89 rising to $99.

Office 365 Home up (secret)

The new Office 365 Home edition price is unknown! Microsoft Australia has refused to disclose the new price of this major selling product.

If the Home edition gets a similar 11% increase, the price could go from $119 to around $132.  Maybe $129 given Microsoft’s love of retail pricing with nines?

Update – 13 October

Microsoft Australia ‘announced’ the new Office 365 Home pricing when they changed their web site.

We were right about Office 365 Home – it’s now AUD$129 up from $119.

Aussie customers still have an opportunity to save by looking for retailers selling at the old price.  OfficeWorks has good prices, still selling for $99 when we checked. HarrisTechnology has raised it’s price but at $105 is still cheaper than Microsoft.  Harvey Norman does NOT — they were selling Home at $10 more than the old, which is now the full retail price.

How to save

Australian customers can save some Aussie dollars by buying Office 365 this week, before the price goes up.  It’s possible to buy up to five years of Office 365.

See Saving money before an Office 365 price increase for details.

Office 365 business and enterprise

Microsoft Australia insists the price rises apply only to the ‘home’ or consumer versions of Office 365.

But, at the same time, there are dark whispers about increases for business customers too.

That could be true or a Microsoft planted rumour to encourage business customers into renewing before any possible price increase.

Only Australia

This only applies in Australia.  The rest of the world, including friends in New Zealand aren’t affected … for now.

Who’s Next?

It’s a cautionary tale for all Office 365 software rental customers. What Microsoft calls ‘subscribers’.

Is the Aussie price rise a trial balloon for a more widespread, global, price increase? It’s  not the first time Australia has been used as a testing ground.

Why raise the price?

11% is way over recent general price inflation in Australia.  There’s been no change in local economic conditions or costs that would justify such a rise.

Microsoft Australia’s official comment on the price rise is that it periodically assesses its pricing to ensure reasonable alignment with the needs of customers, partners and the marketplace“.   As Shakespeare said “Signifying nothing”.

Amazing yet inevitable

The Aussie price rises are being announced and implemented in amazing way.

On the other hand, Office 365 price increases aren’t surprising and really inevitable.

  • MS Australia choosing to keep secret the price increase of the biggest selling Office 365 bundle, the Home edition.
  • The price increase hasn’t received a lot of Aussie media coverage, even though Office 365 Home is widely purchased.
  • The stated reason for the price increase is typical bland meaningless phrasing. The rise has nothing to do with Microsoft’s costs. As always, the real reason is that Microsoft has decided they can make more money by raising the annual price.
  • It demonstrates, again, one reason why Microsoft wants customers on a ‘subscription’ model. They can raise prices (or change the product features) whenever they like.  The cloud integration of Microsoft Office makes it harder for customers to switch away from the software.