Certainly, many were, but there are some failures in that number. One might ask how many of the updates were useful.

Adding more than 1,400 new features to Office 365 since 2011.

Microsoft’s justifications for the increase include: ISVs who specialize in license management will be very happy as they’ll be able to make a pitch on the basis that they can save customers even more money by eliminating unused or underused licenses. One thing’s for sure, the new prices will make tenant administrators pay more attention to license management. Overall, some eyewatering numbers are involved to add to the $78 billion annualized run rate for commercial cloud products reported by Microsoft in their Q4 FY21 results. The exact number depends on the mix of different licenses and the extra revenue from each type, discounts negotiated with customers, and local pricing at a country level. An enterprise tenant with 10,000 users needs to find an extra $360,000 or so to maintain services (I wonder how delirious Accenture will be to pay an extra $18 million for their 500,000+ users?).Īcross the 300 million-odd Office 365 installed base, the new pricing scheme has the potential of delivering billions of extra revenue in a full year. $36 extra per year mounts up fast as user numbers increase. Read more: Effective License Management with a Changing Remote Workforce. Microsoft is not lining up any increases for academic and personal Office 365/Microsoft 365 products. Microsoft 365 E3 increases by $48 per user per year while Microsoft 365 E5 is left untouched, perhaps to encourage more customers to opt for this high-end $57/user/month plan. The net effect is a $36 per user per year uplift for Office 365 E3 and Office 365 E5. Well, now Microsoft plans to increase the monthly fee for most Office 365 and Microsoft 365 plans effective March 1, 2022. I noted that Microsoft hadn’t increased prices for headline plans like Office 365 E3 since 2011. In my article about the launch of Office 365 ten years ago, I think I jinxed Office 365 pricing for everyone.

Breaking the Habit of No Price Rises in a Decadeīreaking the Habit of No Price Rises in a Decade.

Microsoft d365 pricing