Microsoft 365 is one of the most popular cloud productivity tools in the world. With most of its millions of users switching over to the new cloud-based version in the last 10 years. 

 

Since launching 365, Microsoft has added over 24 cloud applications that are used in many day-to-day business activities, adding substantial value to the 365 services. Some of the most popular apps include:  

 

Many of these new features and applications have come at no extra cost to the 365 subscription, often allowing companies to stop paying for alternative services and actually save money! But as with most things these days, Microsoft has finally announced their new pricing structure for its 365 platform, it might not come as a shock to most people but it’s important to be aware of the costs that are being passed onto you in what Microsoft describe as ‘the first substantive pricing update since we launched Office 365 a decade ago”.  

 

Along with the price increase for Microsoft 365, Microsoft has also announced that it will be extending its unlimited dial-in capabilities for Microsoft Teams meetings for all enterprise, business, frontline, and government suites.

What are the new prices?

ProductOld PriceNew Price
Microsoft 365 Business Basic£3.80£5.40
Microsoft 365 Business Premium£15.10£19.90
Microsoft 365 E3£28.10£38.04
Office 365 E1£6.00£9.00
Office 365 E3£17.60£24.24
Office 365 E5£30.80£40.08

New product prices are subject to possible slight changes.

 

Important

For Rejuvenate customers the increase will apply from the 1st May.

Why now?

In a recent blog post from Microsoft, they state that the price rise reflects the increased value that has been added to the 365 suite over the last 10 years. In short, they are capitalising on the recent uplift and increased demand for companies working from home. 

A statement in the same blog post reads: “As leaders around the world look to empower their people for a more flexible, hybrid world of work, it’s clear that every organization will need a new operating model across people, places, and processes. We’re committed to building on the value we’ve delivered over the past decade to continuously provide innovation that helps our customers succeed and thrive today and well into the future.”

Moving to New Commerce Experience (NCE)

As well as the new pricing structure, Microsoft has introduced a new platform, New Commerce Experience. All current Microsoft partners that resell Microsoft 365 and Azure products are migrating their customers and subscriptions from the previous CSP platform over to NCE. 

 

Rejuvenate will be doing the migration in the background so you won’t notice any interruptions to the services, there are some important changes our customers need to be aware of:

 

  • There is now only a 72-hour cancellation window for any upgrades or new services purchased by mistake. 
  • All subscriptions will now be tied into a strict 12-month minimum. Every new license added will be committed to paying for 12 months.
  • You can retain monthly subscription benefits, as opposed to annual commitment, but this will come at a 20% premium in addition to the price increase above. 
  • You can increase your license count at any time, however decreasing or removing a license will not remove the billing commitment, you will still be charged.
  • Upgrade paths will allow you to upgrade from one product to another without penalty, but will not let you downgrade. 

 

 

Have questions about the new 365 pricing?

We’re on hand to answer any questions you might have about the new pricing structure or NCE for Microsoft 365. You can get in touch by calling us on 01202 237 273 or completing a contact form using the link below.