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Sheila Keller, Marketing Strategist

Microsoft Office 365 Price Increases – What Does This Mean for You?

Inflation from the pandemic and other existing factors tends to affect many things in our economy. You’re probably seeing prices increase in the real estate market, interest rates are slowing increasing, and gas prices. You may also be seeing the cost of doing business is slightly increasing as well, due to supply and demand.

For the first time in 10 years, Microsoft is increasing their prices for Office 365/Microsoft 365. During the past 10 years, 1400 new features have been added, so it’s no surprise Microsoft is taking the leap and joining with a slight price increase as well.

FAQ For Office 365 Price Increase


When does this price increase go into effect?

Starting March 1, 2022, Microsoft is raising the price for many of their subscription products.

How does this affect my invoice pricing through NetSmart Plus?

Since we invoice for the month of service, any agreement invoice that covers dates within March will reflect the new pricing.

What do the new pricing structures look like?

Product Current Price New Price
Microsoft 365 Business Basic $5 per user $6 per user
Microsoft 365 Business Premium $20 $22
Office 365 E1 $8 $10
Office 365 E3 $20 $23
Office 365 E5 $35 $38
Microsoft 365 E3 $32 $35

Is there an annual commitment?

Like many other software products, Microsoft is also enforcing an annual commitment for all licensing moving forward. The ability to pay monthly will continue, but the license will need to remain active for 1 year with the above pricing. For most organizations this is not a big concern.

What if I add or remove employees or interns monthly?

If you have monthly needs or change employee status monthly, we ask that you specify that you want a month-to-month license. All month-to-month licenses will carry a 20% price premium.

Where can I obtain more information about these changes?

Please visit Microsoft’s official statement.

**Please note, these changes do not apply to non-profits, education, or government cloud subscribers at this time.

Have questions or want to speak with our NetSmart Plus specialists? Send us a message!