Office 365 has expanded to nearly 300 million commercial paying seats since its arrival a decade ago. They have consistently re-invested along the road to satisfy the evolving demands of their clients. They created Microsoft 365 four years ago to bring together the best of Office, Windows, and Enterprise Mobility and Security (EMS). That same year, they also introduced Microsoft Teams as the only integrated solution that allows its users to meet, chat, phone, collaborate, and automate business activities while still in the middle of their job, and now after almost after a decade to bring in more innovation and to perform all their operations smoothly Microsoft finally decided to raise their prices in the global market.
Microsoft has raised the costs of Office 365 and Microsoft 365 for nonprofit clients all around the world. The shift, which will take effect on September 1, would increase the cost of Microsoft products for organizations worldwide by up to 28 percent. It will have an effect on the cost of Microsoft Office 365 E1, E3, and E5 licences. The upgrade will also be available for Microsoft 365 E3 and Microsoft 365 Business Premium. According to the company, this will have no effect on any nonprofit offers provided as a grant. Despite the hike, Microsoft stated that it will continue to provide charities savings of up to 75% on several other Microsoft 365 goods.
As a result of the move, which was first reported by The Register and was still visible on the Microsoft Partner Centre website at the time of writing, Microsoft Office 365 E1 will now cost $2.50 (approximately Rs. 200), up from $2. (roughly Rs. 150). The Office 365 E3 licence, on the other hand, will be increased to $5.75 (about Rs. 430) from $4.50 (approximately Rs. 340), while Office 365 E5 will be offered for $15.20 (approximately Rs. 1,150) from Rs. $14. (roughly Rs. 1,060). The price of Microsoft 365 E3 will also increase to $9 (about Rs. 680) from $8 (approximately Rs. 600), while the price of Microsoft 365 Business Premium will increase to $5.50 (approximately Rs. 400) from $5. (approximately Rs. 380).
According to Microsoft, the price hikes will be implemented globally, with local market changes for certain locations. The Company explained why it decided to change the Microsoft 365 pricing at this time in FAQ.
They stated this is the appropriate moment to change our price. Although there are still doubts and uncertainty, but they are seeing unmistakable indicators of economic recovery all across the world. Furthermore, their rivals’ prices have risen in recent years, in some cases dramatically. They also stated that they have a better story and a demonstrated track record of reinvesting in the product and continually delivering new value to our consumers.
The revised pricing will apply to both yearly and monthly billion choices for both new and existing users. Existing users will be affected when their subscriptions are renewed after September 1, according to the business. Microsoft also ceased offering on-premise software grants on April 4th.
The firm wrote in its FAQ that it aimed to offer nonprofit customers adequate time to shift to the cloud and lock in existing Microsoft 365 nonprofit rates ahead of the April 4th revisions to their on-premises grant programmme. They further said with all these in mind, they postponed the price rise by six months from the commercial price adjustments to allow nonprofits more time to shift.