What CFOs Need to Know About the Office 365 Price Increase

Tips to help you prepare for March 2022

Microsoft recently announced that as of March 1 2022, prices will increase on some of their more popular Microsoft Office 365 plans by as much as 25 percent.

The specific plans impacted are:

  • Microsoft 365 Business Basic
  • Microsoft 365 Business Premium
  • Office 365 E1
  • Office 365 E3
  • Office 365 E5
  • Microsoft 365 E3

Since percentage price increases are higher on the lower-end plans, Microsoft’s pricing strategy appears designed to drive business towards the more feature-rich (and expensive) plans. This includes encouraging the move from the traditional Office 365 plans to the forward-looking Microsoft 365 offering.

Microsoft are quick to highlight the rapid evolution of the Microsoft Office 365 suite over the last decade, and the raft of industry leading features available. Yet the fact remains that 25 percent is a large increase that CFOs, CEOs and those responsible for IT spend need to be preparing for.

Although viable alternatives to the Microsoft Office 365 platform do exist, such as Google Workspace (previously G-Suite), for most organisations the Microsoft platform will remain the best choice based on features and usability – not to mention the organisational cost of switching platform.

How to prepare for the Office 365 price increase

So how can you best prepare for the increasing price of Microsoft Office 365 licenses? You should take steps now to right-size your organisation’s licensing spend. That way, when the price increase hits in March 2022 you can be confident that your teams will have access to the apps and features that they need – while not spending on features that they don’t.

With the ability to mix and match different license types, it’s a straightforward process to assign either cheaper or more expensive, fully featured licenses to users based on their individual needs.

Follow these steps to right-size your Office 365 licensing spend:

1) Audit your existing licenses to understand what you’re currently paying for, and which users have which licenses (and therefore access to which apps and features).

2) Review which apps and features users actually need in their role. You may find that you have two or three different profiles of user, each requiring different tools. For example, you may have frontline staff who only require access to basic email, and then office staff who require access to the full suite of products & services.

3) Review available Microsoft Office 365 license types to identify opportunities to move users to a cheaper plan.

Talk to us about Office 365 licensing

Before you make any changes, it’s advisable to speak with someone knowledgeable in both Microsoft licensing and your organisation’s requirements, to ensure that nothing has been overlooked that may cause problems. Once changes have been identified and agreed on, your Microsoft Office 365 administrator will be able to make the necessary changes.

Despite the price increase Microsoft Office 365 continues to be the best choice for most organisations. Of course, as with any investment it’s important that you get the most bang for buck by maximising the value you receive while minimising spend.

You can read the original announcement from Microsoft here.

If you’d like more information, get in touch with the Grassroots IT team on 1300 554 138 or contact us online.

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