Microsoft Pricing Update

On Friday 19th August 2021, Jared Spataro, Corporate Vice President for Microsoft 365, announced an update to their commercial pricing – Please read the announcement here. Jared explains these price increases are due to the innovation Microsoft have delivered into their product suites over the past decade. During this time Microsoft have heavily invested and delivered in three key areas: communications and collaboration, security and compliance, and AI and automation.

Since the launch of M365, Microsoft have includes 24 new apps to the suites such as Microsoft Teams, Power Apps, Power BI, Power Automate, Stream, Planner, Visio, OneDrive, Yammer, and Whiteboard—and have released over 1,400 new features and capabilities.

The price increases will include:

Business Plan
– Microsoft 365 Business Basic (from $5 to $6)
– Microsoft 365 Business Premium (from $20 to $22)

Enterprise Plans
– Office 365 E1 (from $8 to $10)
– Office 365 E3 (from $20 to $23)
– Microsoft 365 E3 (from $32 to $36)
– Office 365 E5 (from $35 to $38)

The pricing is per user per month and the increases will apply globally with local market adjustments for certain regions. These changes will go into effect on 1st March 2022. There are no changes to pricing for education and consumer products at this time

Extending audio conferencing capabilities

One way Microsoft are vindicating the price increase is offering Audio Conferencing (RRP £3.02) with unlimited dial-in capabilities for Microsoft Teams meetings across enterprise, business, frontline, and government suites.

Currently only included with Microsoft 365 E5 and Office 365 E5, Audio Conferencing dial-in has become an important part of the complete Teams experience ensuring users will be able to join their Microsoft Teams meeting from virtually any device regardless of location, or even struggling with a bad internet connection. These features will be effective in March 2022.

Frontline Plans
– Microsoft 365 F3, Microsoft 365 F1 and Office 365 F3

Business Plans
– Microsoft 365 Business Premium, Microsoft 365 Business Standard and Microsoft

365 Business Basic
– Enterprise Plans – Microsoft 365 E3, Office 365 E3, Office 365 E1

Changes to Intune and EM&S E3/E5

The price increase announced on the 19th August 2021 are in addition to the price increase Microsoft announced in February 2021 relating to Intune and EMS E3 & E5 which came into effect this month, August 2021. The increases to Intune and EM&S were again based on Microsoft delivering significant investments in Microsoft Endpoint Manger and Microsoft Enterprise Mobility & Security (EM&S) over the past 18 months.

The new features being rolled out include:
– Microsoft Tunnel VPN (features for Android and iOS devices)
– Enhanced MacOS management capabilities – New endpoint analytics features
– Various enhancements to Microsoft Endpoint Manager

The % increases are outlined below and effect Academic, Corporate and Non-For Profits.

ProductLicense Agreement TypeIncrease
Enterprise Mobility + Security A3 for FacultyAcademic10%
Enterprise Mobility + Security A3 for StudentsAcademic10%
Enterprise Mobility + Security A5 for FacultyAcademic14%
Enterprise Mobility + Security A5 for StudentsAcademic14%
Enterprise Mobility + Security E3Corporate21%
Enterprise Mobility + Security E3 (Nonprofit Staff Pricing)Charity20%
Enterprise Mobility + Security E5Corporate11%
Enterprise Mobility + Security E5 (Nonprofit Staff Pricing)Charity11%
Intune Extra StorageCorporate33%
Microsoft Intune (Nonprofit Staff Pricing)Charity34%
Microsoft Intune DeviceCorporate32%
Microsoft Intune for Education for FacultyAcademic10%
Microsoft Intune for Education for StudentsAcademic10%

Price Increases for On-Premise Software on MOLP, OV, OVS, OVS and Schools agreements.

Microsoft have announced that from September 1st 2021 there will be increases to on-premise software across various programs and product families.

There are 2 stages to the increases as outlined below.

1. For MOLP/Open licensing, the increases are as follows over the coming months.

Effective DateSeptember 1, 2021October 1, 2021November 1, 2021
Product familyWindows Server, RDS CAL, SQL ServerOffice ClientRemaining on-premises product in the Open License program
Pricing Increase5%5%5%

2. Across all volume licensing programs (MOLP, OV, OVS, OVS and Schools agreement), in addition to the above, on September 1st 2021 there will be an approximate 10% increase on Windows Server (including the core infrastructure suite) and Remote desktop services, and on October 1st 2021 Office will increase by a further 10%.

This is all inline with the retirement of the Open Licensing programme on January 1, 2022. Read about the Microsoft Open License program changes.

XMA are on hand to assist you in understanding how these changes will impact your organisation directly and review your licensing requirements and end user profiles. Please speak to your XMA team today to book a consultation meeting with our licensing specialists.