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November 23, 2021

Microsoft 365 Pricing and Terms Changes. What you Need to Know


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In August 2021, Microsoft announced the first price increase since Office 365 launched. The change will be effective as of March 1, 2022, and will only affect commercial pricing for some Microsoft 365 products.

Cloud Solution Provider (CSP) and volume licensing agreement customers will be price protected for the applicable subscription plans for the term of their agreement/subscription, provided they were purchased prior to March 1, 2022.

The following table lists the products affected and their new price.

Current Price
New Price
Microsoft 365 Business Basic
Microsoft 365 Business Premium
Microsoft 365 E3
Office 365 E1
Office 365 E3
Office 365 E5

Extending Dial-in Capabilities to Additional Microsoft 365 suites

Dial-in capability in Microsoft teams allows your guests to join your meetings by dialing into the session.
Currently, if you are using Microsoft 365 E5 or Office 365 E5, the dial-in option is included in your subscription. Otherwise, users have to purchase a standalone dial-in license.

In August 2021, Microsoft announced the extension and enablement of dial-in capabilities to additional products in Enterprise, SMB, Frontline, and governments lines.  The change will be effective in March 2022.

New Terms, Fees, and Cancellation Policies

Not related to the price increase above. Starting January and until July 2022, customers must choose from one of the following license terms:

  • Monthly subscriptions will be subject to a 20% fee on top of the 15% price increase.
  • Annual agreements will not be subject to the 20% fee. This may be paid monthly with a 1-year agreement.

Once enrolled in the new licensing module, customers will have a 72-hour window to cancel or reduce their subscriptions. If not canceled within the 72 hours window, Customers will be required to keep and pay for the selected subscription until the end of its term.

It's Time to Partner with a Microsoft CSP

With the price increase taking effect in March, and New Commerce Experience (NCE) is just around the corner, posing additional changes such as a 20% increase on top of the already scheduled increase for monthly plans. It's essential to connect with a cloud solution provider that helps you understand and plan your Microsoft cloud licensing structure the changes.

Contact us to learn more about our Microsoft cloud services.

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