Microsoft Price Changes to Come March 1, 2022
Microsoft announced they will be changing their commercial pricing for Microsoft 365—the first substantive pricing update since they launched Office 365 a decade ago. This updated pricing reflects the increased value delivered over the past 10 years.
In being a Microsoft top indirect partner, Ingram Micro Cloud is committed to helping partners seamless transition through this pricing shift. There’s a reason why over 55,000 partners across 64+ countries trust Ingram Micro Cloud with their Microsoft business. Partners have leveraged the Microsoft relationship to bring success to help develop how they transact and grow with Microsoft.
Microsoft Commitment to Continuous Innovation
Since Microsoft launched Office 365 a decade ago, they have grown to over 300 million commercial paid seats working alongside their partners. Along the way, they have continuously re-invested to meet the changing needs of customers. Four years ago, they introduced Microsoft 365 to bring together the best of Office, Windows, and Enterprise Mobility and Security (EMS), adding Microsoft Teams as the only integrated solution to meet, chat, call, collaborate, and automate business processes—right in the flow of work.
Since introducing Microsoft 365, 24 apps have been added 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 in three key areas:
- Communication and Collaboration: Real-time collaboration, Together Mode, Front Row
- Security and Compliance: DLP for email and documents, sensitivity labels and message encryption; Content Search, MFA
- AI and Assistance: Acronyms; live captions and subtitles; Translator, Designer
New pricing for Microsoft 365 (USD)
SMB Products (effective March 1, 2022)
- M365 Business Basic: $6 (from $5)
- M365 Business Premium: $22 (from $20)
Enterprise Products (effective March 1, 2022)
- Office 365 E1: $10 ($8)
- Office 365 E3: $23 ($20)
- Office 365 E5: $38 ($35)
- Microsoft 365 E3: $36 ($32)
- No changes to Microsoft 365 F1 or Microsoft 365 E5 and Microsoft 365 Business Standard SKU
- No impact to Education or Consumer products (at this time)
- Pricing applies to Commercial Volume Licensing, CSP, and Web Direct
- Existing customers are not impacted until their next renewal on or after March 1, 2022
- Exceptions in APAC, India, LATAM for (1) Office 365 BB, and (2) lead status EM specific SKU
Extending Unlimited Audio-Conferencing Dial-In Across the Suites to Complete the Teams Usage Scenario
- Allows customers to dial-in to Teams meetings from +70 countries on virtually any device
- Currently included with Microsoft 365 E5 and Office 365 E5 or available as an add-on
- Enterprise: Microsoft 365 E3, Office 365 E3, Office 365 E1 (already include with M/Office 365 E5)
- Frontline: Microsoft 365 F3, Microsoft 365 F1, Office 365 F3
- SMB: Microsoft 365 Business Basic, Business Standard, Business Premium
- Government (GCC, GCCH, DOD): Microsoft 365 E3, Office 365 E3, Office 365 E1, Microsoft 365 F3, Microsoft 365 F1
- Change will be effective in March 2022; we have extended the $0/user promo through the end of May 2022 to bridge the gap between the announcement and availability
Unlimited $0 Audio Conferencing dial-in will be available for these SKUs on March 2022:
Please Note: We are not increasing our prices because of the addition of Audio Conferencing. Extending unlimited dial-in across the SKUs is simply the latest example of how we regularly deliver new value to support the changing needs of our customers.
When Will the New Pricing Take Effect?
For commercial customers, updated pricing will go into effect on March 1, 2022, providing roughly six months of notification. Price increases for U.S. Government cloud customers will be implemented in a phased manner due to broader GOV price rationalization and 10% annual price increase cap:
Impact schedule for US GOV
Please note that this phased price increase is only available for U.S. Government (as required by local regulations) and is not available for Public Sector customers worldwide.
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Category Company & Partnership News, Industry Trends & Insights
Written by Briana Lau
Published on September 09, 2021
Briana Lau, Global Business Development Lead, Microsoft Modern Work, Ingram Micro Cloud
Briana leads Ingram Micro Cloud's Microsoft Modern Work portfolio business globally. She's responsible for developing strategies, driving new initiatives and launching customer-focused campaigns and incentives for indirect resellers.