Microsoft announces changes to the commercial & pricing model for Microsoft 365

Back in August 2021, Microsoft announced changes to the commercial & pricing model for Microsoft 365. The update on pricing reflects Microsoft’s perceived increase in value that is delivered to customers since its launch some 10 years ago.

Microsoft has, to a certain degree re-invested to meet the changing needs of customers. For example, four years ago they introduced Microsoft 365 to bring together the best of Office, Windows, and Enterprise Mobility and Security (EMS). That same year they added Microsoft Teams and since then they have added 24 apps to the suites—Microsoft Teams, Power Apps, Power BI, Power Automate, Stream, Planner, Visio, OneDrive, Yammer, and Whiteboard—and have released over 1,400 new features and capabilities.

Specific UK pricing details are yet to be formally announced but the new pricing will come into effect on 1st March 2022 with options to lock in future pricing on 12- & 36-month contracts or continue with monthly payment plans. The monthly ‘pay as you go’ model that most businesses currently use is expected to be 20% more expensive than the term contracts.

If you would like to discuss your Microsoft 365 licensing requirements and how these changes may affect you, please contact us.