Last fall, Microsoft announced price increases set to go into effect beginning March 1, 2022. The company also outlined additional important changes that will impact users’ subscription agreements.

Monthly pricing per license will increase on the following 365 products:

  • Microsoft 365 Business Basic from $5 to $6.
  • Microsoft 365 Premium from $20 to $22.
  • Office 365 E1 from $8 to $10.
  • Office 365 E3 from $20 to $23.
  • Office 365 E5 from $35 to $38.
  • Microsoft 365 E3 from $32 to $36.

Along with these adjustments, Microsoft stated that annual license purchase agreements will be enforced. Monthly terms will be available at a 20% premium.

Monthly Annual
Term 1 month 12 months
Payment Option Monthly Monthly or Annual
Price 20% Premium No Change
Price Lock 1 month 12 months
Flexibility Decrease quantities monthly. Increase daily. Decrease quantities on an annual basis. Increase daily.

For example, a Microsoft 365 E3 license will go from $20 to $23 with the new increase. For a month-to-month agreement, that license will increase again to $27.60, while opting for the annual subscription will save users $55.20 per license.

License purchases made under the annual agreement will qualify for the standard price model and could provide significant savings over the month-to-month model for certain users. These annual subscriptions can be paid upfront or monthly.

The month-to-month subscription, while more expensive than the annual subscription, is more flexible and could be useful for organizations with seasonal workforces, contractors, or other situations.

Licenses may be added during a month-to-month or annual term, but only decreased prior to the start of a new agreement.

If you have any questions about the information above, please contact your BinaryNetworks representative.