M365 customers should explore alternatives, plan to dicker as prices hikes loom - analysts
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M365 customers should explore alternatives, plan to dicker as prices hikes loom - analysts
"Microsoft 365 Business Basic, up $1 to $7 per user each month. Microsoft 365 Business Standard, up $1.50 to $14 per user each month. Office 365 E3, up $3 to $26 per user each month. Microsoft 365 E3, up $3 to $39 per user each month. Microsoft 365 E5, up $3 to $60 per user each month. Microsoft 365 F1, up 75 cents to $3 per user each month. Microsoft 365 F3, up $2 to $10 per user each month."
"Two plans will remain the same: Microsoft 365 Business Premium and Office 365 E1 ($22 and $10 per user each month, respectively). Microsoft 365 Government customers will see increases of between 5% and 10%, depending on their plan. (There's more information in a related blog post). All prices include Microsoft Teams; lower rates apply without the collaboration app included. "These recent price actions will further intensify customer concerns and pricing fatigue," said Gartner analysts Zach Nagle and Stephen White in a "first take" report in response to the changes. Microsoft last hiked M365 prices in 2022, increasing subscriptions by between 9% and 25%. It recently made changes to its Enterprise Agreement terms for products including Microsoft 365, phasing out volume-based discounts that previously lowered per-seat pricing for large customers."
Microsoft raised per-user monthly prices for multiple Microsoft 365 and Office 365 plans, with increases ranging from $0.75 to $3 depending on the plan. Two plans—Microsoft 365 Business Premium and Office 365 E1—remain unchanged at $22 and $10 per user per month. Microsoft 365 Government customers will face increases between 5% and 10% depending on plan. All listed prices include Microsoft Teams, with lower rates available if Teams is excluded. Gartner analysts warned that the actions will intensify customer concerns and pricing fatigue. Microsoft previously raised M365 prices in 2022 and recently altered Enterprise Agreement terms, phasing out volume-based discounts.
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