We knew it was going to happen, but just didn’t know when. With Microsoft adding so many new apps, features, and capabilities it was long overdue.

In the decade prior to this price increase, Microsoft has enhanced the online offering significantly. Let me provide a high-level overview of what has changed since the initial release of Office 365.

Microsoft 365 was introduced, which not only includes Office, but also Windows, and Enterprise Mobility and Security (EMS)

Microsoft 365 has since added 24 new apps including Microsoft Teams, the Power trio (Apps, BI, Automate), Stream, Planner, and OneDrive

Released over 1,400 new features and capabilities falling into three primary functional categories:

Communication and Collaboration

                                Microsoft Teams

                                Real-time collaboration in Word, Excel, and PowerPoint

                                Expansion of OneDrive storage and Exchange Online mailboxes

                Security and Compliance

                                Surface reduction capabilities to defend against ransomware

                                Data Loss Prevention (DLP) for both email and documents

                                Built-in Mobile Device Management (MDM) tools

                AI and Automation

Introduced AI-powered solutions

AI-powered real-time translation

Cloud-powered AI which can sort emails and remove clutter in Outlook

Now let’s introduce the per user pricing structure that goes into effect March 1st of 2022.

M365 Business Basic increases from $5 to $6

M365 Business Premium increases from $20 to $22

O365 E1 increases from $8 to $10

O365 E3 increases from $20 to $23

O365 E5 increases from $35 to $38

As you can see it is a $2.00 increase for the lower tier subscriptions, and $3.00 for the two upper tier subscriptions. So the overall impact will depend on how many users you have in the cloud. Based on what they have added for apps, features, and functionality the increase isn’t all that bad. Let’s hope it will be another ten years before there is another price increase.