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In a recent development that has caught the attention of businesses and individuals alike, Microsoft has announced an upcoming price increase for its Microsoft 365 suite of services. Effective from September 1st, 2023, this adjustment marks a significant shift in Microsoft’s pricing strategy, as the company aims to align its services with the USD every March and September. This move has naturally sparked curiosity and concerns among users who rely on Microsoft 365 for their work, collaboration, and communication needs. To address these questions, concerns, and shed light on the implications of this change, let’s delve into the details.

 “As communicated in October 2022, Microsoft has established a defined and transparent cadence to its existing process of aligning Microsoft Cloud pricing globally to U.S. dollar levels. This ensures that customers across different geographies and currencies will encounter consistent pricing reflecting the exchange rate of the local currency to the U.S. dollar (USD).”

The price increase to their services of roughly 9% across all there subscription based services. Please see the below link for confirmation.

The following is not an exhaustive list of licenses (there are thousands) but these are the more popular ones and note the RRP ex GST.

Product Title – Billing periodicityRRP Price ex GST
Azure Active Directory Premium P1 – Monthly$10.80 
Azure Active Directory Premium P1 – Annual$108.00 
Azure Active Directory Premium P2 – Monthly$16.20 
Azure Active Directory Premium P2 – Annual$162.00 
Azure Information Protection Premium P1 – Monthly$3.60 
Azure Information Protection Premium P1 – Annual$36.00 
Exchange Online (Plan 1) – Monthly$7.20 
Exchange Online (Plan 1) – Annual$72.00 
Exchange Online (Plan 2) – Monthly$13.32 
Exchange Online (Plan 2) – Annual$133.20 
Exchange Online Kiosk – Monthly$3.60 
Exchange Online Kiosk – Annual$36.00 
Microsoft 365 Apps for business – Monthly$15.60 
Microsoft 365 Apps for business – Annual$156.00 
Microsoft 365 Business Basic – Monthly$10.80 
Microsoft 365 Business Basic – Annual$108.00 
Microsoft 365 Business Premium – Monthly$39.48 
Microsoft 365 Business Premium – Annual$394.80 
Microsoft 365 Business Standard – Monthly$22.44 
Microsoft 365 Business Standard – Annual$224.40 
Microsoft 365 E3 – Monthly$68.16 
Microsoft 365 E3 – Annual$681.60 
Microsoft 365 E5 – Monthly$102.36 
Microsoft 365 E5 – Annual$1,023.60 
Microsoft Teams Phone Standard – Monthly$14.40 
Microsoft Teams Phone Standard – Annual$144.00 
Office 365 E3 – Monthly$43.56 
Office 365 E3 – Annual$435.60 
Office 365 E5 – Monthly$72.00 
Office 365 E5 – Annual$720.00 
Power BI Premium Per User – Monthly$35.88 
Power BI Premium Per User – Annual$358.80 
Power BI Premium Per User Add-On – Monthly$18.00 
Power BI Premium Per User Add-On – Annual$180.00 
Power BI Pro – Monthly$18.00 
Power BI Pro – Annual$180.00 
Project Online Essentials – Monthly$12.60 
Project Online Essentials – Annual$126.00 
Project Plan 1 – Monthly$18.00 
Project Plan 1 – Annual$180.00 
Project Plan 3 – Monthly$53.88 
Project Plan 3 – Annual$538.80 
Project Plan 5 – Monthly$98.76 
Project Plan 5 – Annual$987.60 
SharePoint (Plan 1) – Monthly$9.00 
SharePoint (Plan 1) – Annual$90.00 
SharePoint (Plan 2) – Monthly$18.00 
SharePoint (Plan 2) – Annual$180.00 
Visio Plan 1 – Monthly$9.00 
Visio Plan 1 – Annual$90.00 
Visio Plan 2 – Monthly$26.88 
Visio Plan 2 – Annual$268.80 
Power Apps per user plan – Monthly$35.88 
Power Apps per user plan – Annual$358.80 
Power Automate per user plan – Monthly$26.88 
Power Automate per user plan – Annual$268.80 
Microsoft Teams Essentials – Monthly$7.20 
Microsoft Teams Essentials – Annual$72.00 
OneDrive for business (Plan 1) – Monthly$9.00 
OneDrive for business (Plan 1) – Annual$90.00 
OneDrive for business (Plan 2) – Monthly$18.00 
OneDrive for business (Plan 2) – Annual$180.00 

The Price Alignment Strategy

Microsoft’s decision to adopt a price alignment strategy, updating its prices twice yearly in March and September, marks a departure from its previous approach. Historically, Microsoft has adjusted its pricing sporadically, often in response to market conditions, technological advancements, or changes in demand. With this new strategy, Microsoft aims to provide its customers with more predictable pricing updates and better alignment with global economic fluctuations.

Understanding the Impact

The price increase, set to take effect on September 1st, 2023, will impact various subscription plans within the Microsoft 365 suite. This includes but is not limited to, plans targeted at individuals, small businesses, and enterprise customers. While the exact details of the price adjustments for each plan have not been disclosed in the initial announcement, users can expect a varying degree of increase based on the plan to which they are subscribed.

Navigating the Change

Some may wonder about the best course of action as Microsoft users digest this news and prepare for the forthcoming changes. Here are a few steps to consider:

  1. Review Your Current Plan: Take some time to assess the specific Microsoft 365 plan you subscribe to. Understand its features, limitations, and how it aligns with your needs.
  2. Adjust Your Budget: Since the price increase is imminent, it’s advisable to incorporate the updated pricing into your budget planning. This will help you avoid any financial surprises come September 1st.
  3. Explore Alternative Solutions: This could also be an opportunity to evaluate whether your current Microsoft 365 plan still fits your needs best. Research alternative software solutions that offer similar features and functionality.

Seeking Clarifications

For those with lingering questions or concerns about the upcoming changes, Microsoft recommends contacting their customer support or referring to their official communication channels. Additionally, users can contact OzHosting, a trusted partner that offers hosting and related services, for further assistance and guidance regarding this transition.

Get in touch with our team if you have any questions – [email protected]