Microsoft 365 Subscription Price Increase: What you Need to Know

Microsoft has announced a 6% price increase on subscription plans effective September 1st, 2023.  As a trusted cloud service provider and Microsoft technology partner, HostedBizz would like to ensure that any questions you may have about navigating these upcoming changes.

What you Need to Know

As of September 1st, 2023, Microsoft will increase it’s price by 6% for its Microsoft 365 subscription plans. This includes plans for both personal and business users.

Does this change apply to Non-Profit and Education accounts?

Yes, this price increase impacts all cloud and on-premises licensing costs for CSP, commercial, government, academic, and non-for-profit customers.

Will I get billed immediately for this increase in price?

If the subscription is currently billed monthly – the increase will take effect on your next monthly bill after the 1st of September 2023.

If the subscription is currently billed annually – the increase will take effect on your next annual renewal after the 1st of September 2023.

What will happen to my subscriptions that have renewal dates after September 1st, 2023?

Subscriptions will continue to cost the same price until the next term renewal date. Customers will not see an increase in price on pre-paid annual subscriptions until the next renewal term.

How will this impact Annual subscriptions that are billed monthly?

Throughout the subscription term, the pricing remains unchanged at the original billing price. The price will increase when the subscription time is renewed.

How will this impact my legacy subscriptions that haven’t been moved to NCE yet?

Price protection for existing subscription terms is in effect for both legacy and NCE.

Why is Microsoft Increasing Subscription Prices?

Microsoft is currently in the process of aligning Microsoft products and cloud pricing globally to U.S. dollar (USD) levels. This is to ensure that clients across different currencies and geographies will have consistent pricing reflecting the exchange rate of their local currency to the USD. Microsoft will continue to assess their pricing twice-a-year, taking into consideration the currency fluctuations relative to the USD. This should provide predictability and transparency for customers around the globe.  Unfortunately, this is out of our control.

Tips to Minimize the Impacts of the Upcoming Price Increase

  • Consider Annual Subscriptions: Microsoft often offers discounts for annual subscriptions compared to monthly ones. If you’re committed to using Microsoft 365 in the long term, switching to an annual subscription could mitigate the impact of the price increase.
  • Maximize Value: Take advantage of training resources, support services, and features that can help boost productivity and efficiency. Our in-house Microsoft Experts can help you optimize your solutions, and how your employees use them.
  • Evaluate Licensing Options: Microsoft offers various licensing options tailored to different business sizes and needs. HostedBizz offers subscription audits that ensure your organization is making the most of your investment.
  • Consult with Experts: If you’re unsure about how the price increase will affect your organization, don’t hesitate to reach out to your dedicated HostedBizz representative. We’ll analyze your current setup, evaluate your needs, and recommend the most cost-effective solutions.

Along with change often comes growth and innovation. As a dedicated Microsoft Service Provider, we’re here to guide you through these changes, ensuring that your organization continues to leverage the power of Microsoft 365 effectively and efficiently.

If you have any questions or concerns about the price increase or need assistance with your Microsoft 365 strategy, feel free to reach out to us. Together, we can navigate these changes and help your business thrive in the ever-evolving digital landscape.