- About Us
- IT Services
- IT Security
- Cloud Services
- Our Clients
- Get Support!
On August 19, 2021, Microsoft announced new commercial prices for Microsoft 365, the first price update since the platform was launched ten years ago. In a statement released to the public, Microsoft says the updated pricing aligns with the added value the company has been offering the users in the past decade.
OneSource Technology takes a deep dive on the price changes what it means to your business.
The following is a breakdown of the new pricing for Microsoft 365 commercial products:
The new Microsoft 365 pricing model will go into effect in the next six months. This means that on March 1, 2022, you will be paying new prices for all Microsoft 365 commercial products. The increases apply globally with some local market adjustments for some regions. Notably, as of now, Microsoft doesn’t intend to introduce any changes to pricing for their education and consumer products.
Microsoft first launched Office 365 in 2011 in 40 different markets. Today Office 365 has over 300 million commercial paid seats, and along the way, the company has been making improvements designed to make the tool more functional to meet the market’s changing needs.
Four years ago, the company rolled out Microsoft 365 that combines Enterprise Mobility and Security (EMS), Windows, and Office.
Let’s recap some of the innovations and additional features that the company delivered in the past ten years:
The new pricing may not affect the larger businesses and corporations as much as the smaller enterprises. This is because larger businesses are more positioned to negotiate bulk discounts and deals. The new pricing may put undue financial pressure on smaller firms struggling to recover from the COVID19. However, considering the added features, including more than 20 apps to Office 365, the actual dollar impact per client will be pretty minimal.
At OneSource Technology, we believe the price increase will be a significant financial boost for Microsoft over time. Once the price increase is complete, the over 300 million subscribers will pay between $1 & $3 more per month, translating to about $7.2 billion in additional revenue per year. However, investors will experience the full impact of the changes in fiscal 2023 and beyond.
So should you invest in Microsoft today? Well, it is worth noting that two days after Microsoft announced the first price increases for its Microsoft 365 and Office 365 commercial cloud product suites, their stocks surged 4.7% on the news. Microsoft undoubtedly ranks among the top stocks that hold higher promise, and investing in the company now gives you opportunities to increases your chances of making profits in growth stocks.
Microsoft reckons that “the price increase reflects the increased value we have delivered to our customers over the past 10 years.” Although the price changes won’t be drastic, it could still surprise users who have paid the same prices for the service since 2011.
However, considering Microsoft’s vast investments in its product offering in the past few years, one can conclude that the price increase is long overdue. If you have further questions or need help with your Microsoft 365, contact OneSource Technology today. We provide IT services and IT support to customers in Wichita and Kansas City metro areas. Contact us today to learn more.