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Microsoft to increase prices for Office 365 and Microsoft 365

On August 19, 2021 Microsoft announced that it will raise the prices of commercial subscriptions to its Microsoft 365 bundles of productivity apps such as Word and Excel, formerly known as Office 365.

Microsoft’s updated pricing will go into effect on March 1st, 2022:

  • Microsoft 365 Business Basic (from $5 to $6 per user)
  • Microsoft 365 Business 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)

The company won’t be adjusting the cost of certain Office subscriptions, including Microsoft 365 E5 ($57 per user per month), Microsoft 365 F1 ($2.25) and Microsoft 365 F3 ($8). Consumer and education subscriptions won’t be affected either.

Microsoft first launched Office 365 in 2011 across 40 different markets, and the company has been improving it ever since. These price changes mark “the first substantive pricing update since we launched Office 365 a decade ago,” explains Microsoft 365 chief Jared Spataro in a blog post.

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