Microsoft announced last month, an increase to their products, notably Microsoft 365 Business Basic, Business Premium, Office 365 E1, E3, E3 and Microsoft 365 E3 to take place in March 2022.
Just recently, Microsoft has also made mention that the CSP (Cloud Solution Provider) program through which many businesses obtain their licenses, will need to pay a premium if they want to stay on month-to-month payment terms, labelled as the “New Commerce Experience“.
This is the first of such price increases in the history of Microsoft 365, as far as I can recall. They have also added many apps to the existing product offering that we and our customers take advantage of every day, such as Microsoft Teams, Power Apps, Power BI, Power Automate, Stream, Planner, Visio, OneDrive, Yammer, and Whiteboard.
The price changes have been announced in USD but we have no AUD pricing listed yet. However, if we take the USD price changes and apply the same percentage change to AUD, we can get a prediction of where the pricing will end up.
| License/SKU | USD % Increase | AUD Price (2021) | AUD Price (Mar 2022) (Annual Commit) | AUD Price (Mar 2022) (Monthly Commit) | Max % Increase |
|---|---|---|---|---|---|
| Microsoft 365 Business Basic | 20% | $6.90 | $8.28 | $9.84 | 43% |
| Microsoft 365 Business Premium | 10% | $24.50 | $30.25 | $35.94 | 31% |
| Office 365 E1 | 25% | $11.00 | $13.75 | $16.34 | 49% |
| Office 365 E3 | 15% | $29.00 | $33.35 | $39.63 | 37% |
| Office 365 E5 | 9% | $50.70 | $55.05 | $65.41 | 29% |
| Microsoft 365 E3 | 13% | $46.40 | $52.20 | $62.03 | 34% |
If you do not take action and convert to an annual commit, you could see your Microsoft 365 bill increase by 29% to a whopping 49%. If you do convert however, it will instead be somewhere between 9% and 25%
We expect to have a more solid answer of what is happening to prices over the coming months and when we do, we will be sure to let you know. If you have questions regarding your Microsoft 365 licensing or need to convert to an annual commitment, please contact us!
