Microsoft 365 Business Price Increase and O365 Fees Rise
If your organization subscribes to any of the O365 business plans, then you must know that there is a
Microsoft 365 business price increase scheduled for early next month.
>This bump in price is primarily due to the addition of even more AI features, not just in the Copilot app but also in traditional business suite applications like PowerPoint, Excel, and Word. So let’s see the reason behind this increase in price.
Why is there a Microsoft 365 Business Price Increase?
Microsoft wants to lead the enterprise-level AI adoption and is thus bringing in many changes to its existing products by integrating AI functionality. However, it is not possible to deliver these services at existing price points.
So, as a result, a price increase is inevitable. While many are still in doubt whether or not these features will bring in the productivity gains. and thus the value proposition that Microsoft is
Next up, we have a tabular representation of how much the cost per user is going to increase in various plans.
Understand the Pricing Structure Changes: Before & After
Microsoft has adjusted pricing across popular subscription plans. Here’s a general overview (figures may vary by region or contract):
Business Basic
From ~$6.00
To ~$7.00
Business Standard
From ~$12.50
To ~$13.50
Business Premium
From~$22.00
To ~$23.50
Enterprise E5
From ~$57.00
To ~$58.00–$60.00
Enterprise pricing is often tailored to organizational needs so it may vary.
Is it Possible to Opt-Out of AI Features & Deny the Microsoft 365 Business Price Increase?
No, Microsoft provides no options to its subscribers where they continue to pay the same as their current package and not get the AI update.
This is one of the limitations of a cloud-based system: the server’s side updates and costs are subject to the service provider’s will.
AI improvements are just one piece of the puzzle; numerous security improvements also accompany the new update. For most organizations, it would be a net positive and a change that brings more value.
Also Read: What to Do If Outlook is Not Connecting to Exchange Server?
However, if you’re in the fringe minority who still want to delay paying the new prices and plan on using the M365 suite of products for the time being, then there is one option available.
Which is to pre-extend your billing cycle and go for an annual lock before the price changes become life. In this way, you will be able to use M365 at the same price point you are using now for one more year.
- Log in Microsoft 365 Admin Center
- Go to Billing > Your products.
- Select your current plan.
- Edit recurring billing
- Select the option for “Annual” or “Prepaid annually.
- M365 will handle prorated credit, if any
- Confirm the new billing frequency (annual) and see the updated renewal date.
Bypass Microsoft 365 Business Price Increase By Migrating
The price increase is permanent, so many organizations might be re-evaluating whether they want to remain with M365 or switch over to a competitor like G Suite.
Doing a manual migration may feel tempting at first due to its supposedly 0-dollar price point. However, admins will soon find the hidden costs, like extended downtime, data loss, faulty transfer, etc.
That is why it is always better to rely on a tried and tested solution like the SysTools Office 365 to G Suite Migration tool. That can handle all of the heavy lifting and allow organizations to save a lot of time.
Perform a quick migration to dodge the Microsoft 365 Business price increase by:
- Step 1. Installing a copy of the software on your machine.
- Step 2. Then, select the endpoints as Microsoft 365 and G Suite
- Step 3. Validate Source and Destination admin accounts
- Step 4. Map the users
- Step 5. Validate user list and Start Migration.
Conclusion
So now readers are aware of how to handle the Microsoft 365 Business price increase. Although the bump in costs is inevitable, with no option to opt out, businesses must make use of the new AI features that they are about to receive.
It means training the workforce to bring them at ease.
If you are still worried about the increased subscription fees affecting your bottom line, there is an option to migrate out of M365 and into an equivalent Google Workspace plan. Which for now is cheaper. A smart tip to delay the extra cost would be to renew an annual commitment just before the update happens, i.e., by the end of March.
Businesses are well suited to make the most efficient cost-benefit analysis that fits well within their operations.