Beat the Microsoft price increases
There are just a few days left for Business customers to lock in lower prices for Microsoft 365, before Business plans get more expensive on 14 March 2022.
No customer likes a price increase but Microsoft’s targeted rises in Microsoft 365 Business plans have been unpopular with both customers and the vital partner or sales community. Little wonder Redmond has decided to delay their money grab a little longer.
The price increases announced last year, up to 25% price increase Microsoft 365 Business and Enterprise including Business Basic and Business Premium are being delayed until 14 March 2022.
This does NOT apply to consumer Microsoft 365 (Personal or Family) plans. There’s no announced price increase so far. Our usual advice applies; extend your Family or Personal plan anytime when a discounted offer is available.
Beat the price rise
Business plan customers, especially those paying monthly, can lock in the current, lower prices.
Simply pay the current annual rate before 14 March. After that you’ll pay up to 25% more for the same Microsoft 365 plan.
The new prices are higher generally but also more expensive paying monthly. So there’s an extra incentive to switch to annual payments for as many licences as possible.
Transitional Grace Period
Microsoft calls this extra two weeks a ‘transitional grace period’. We call it an opportunity for their small business customers to save some money.
To beat the price rise, new transactions have to be completed by:
- 14 March 2022 at 5 PM Pacific Daylight Time which is
- Midnight UTC 15 March 2022
According to Microsoft, the extra two weeks is to provide “ additional lead time for adapting business processes and placing orders”.
They also “… anticipate Microsoft partners will not use this grace period to pull forward demand for these offers.”. Which is a strange thing to say. Why wouldn’t partners act in their own interest to generate some more sales? More likely Microsoft is signalling the reverse to their sales partners; to push more customers to pay annually in advance.
Real price increases
Microsoft quotes the price rises on a per month basis so the increases look small (e.g. $1 a month Business Basic). Those rates are duly copied in many media reports.
As Office Watch reported last year, the real increases are much higher than the monthly rates make it seem.
- Microsoft 365 Business Basic: up 20%
- Microsoft 365 Business Premium: up 10%
- Office 365 E1: increases 25%!
- Office 365 E3: up 15%
- Office 365 E5: 9%
- Microsoft 365 E3: 13%
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