Upcoming Microsoft 365 Pricing and Licensing Changes


Microsoft recently announced several upcoming changes that will affect most Microsoft customers. This includes a price increase for commercial Microsoft 365 plans, including how M365, Dynamics 365 and Power Platform are licensed.  

As of March 1, 2022, there will be a price increase coming to Office 365 and Microsoft 365 commercial customers. The only exception will be Microsoft 365 E5 and Frontline SKUs.

Here are the new licensing term options: 

  • Monthly – This gives the flexibility to increase and decrease the number of licenses every month but comes with a 20% premium. 
  • Annual – This commits you to a specific number of licenses at a more attractive price for the annual term, however, it does mean that if staff numbers change and drop below the baseline you will still need to pay the baseline level.  
  • Mix and match subscription – This is a useful option for organizations where staffing levels can fluctuate. For example, you could commit to an annual or 3-year term for your core staff to lock in the best price and then have a monthly commitment to license fluctuating staffing levels, such as seasonal staff. 

This price increase is the first major price change since Office 365 was launched in 2011. The reason for the price increase is the increased value and investment into Microsoft 365 with Microsoft having launched and included many new applications and services in their Microsoft 365 subscriptions, such as Teams, Stream, and Planner to name a few. 

If you are a client of 2W Tech, our team will be reaching out to you to help determine the best licensing option and explore any benefits you can get from any early discounts. The right option will depend on how much you rely on the flexibility to change license levels or if you can commit to a longer-term with a specific license number, the annual or multi-year term will give you better value. Of course, there is also the option to mix and match too. 2W Tech can review how the price changes and term options will affect your business.  

If you are not yet a client of 2W Tech, we can still help you navigate through the M365 license terms and price changes. Give us a call today, our team is ready to help. 2W Tech is a Microsoft Gold Partner. 

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