New pricing for Microsoft 365

On Thursday, August 19th, Microsoft announced an update to its commercial pricing for Microsoft 365, the first substantive update since Office 365 was released in June 2011. This change will go into effect on March 1, 2022 – providing customers about six months of advance notification. It will include:



·   Microsoft 365 E3 (US$32 gUS$36/user)

·   Office 365 E5 (US$35 gUS$38)

·   Office365 E3 (US$20 gUS$23)

·   Office 365 E1 (US$8 gUS$10)



·   Microsoft 365 Business Basic (US$5 gUS$6/user)

·   Microsoft 365 Business Premium (US$20 gUS$22)


Microsoft will provide updates on the NZD pricing as they come to hand and there is no price change at this time for education or consumer products.


This price update builds on the product innovation Microsoft have delivered over the past ten years to meet the changing needs of customers. Since initial release, they’ve added 25 new apps and more than1,400 features. This includes the introduction of Microsoft Teams as the only solution with meetings, chats, calls, collaboration, and the ability to automate business processes. We have added capabilities like data loss prevention (DLP) for documents and emails, Office messaging encryption, and attack surface reduction capabilities. And we have added new artificial intelligence (AI)-supported capabilities that help automate tasks, find the information we need, and help us communicate in ways that are more accessible or everyone.


Please take a look at the announcement to see just some of the innovations delivered over the past decade in three key areas: communications and collaboration, security and compliance, and AI and automation.


Also announced, the extension of unlimited dial-in across paid enterprise, business, frontline, and government suites, enabling users to dial-in and join a Teams meeting from virtually any device. The change will impact:


·   Enterprise – Microsoft 365 E3, Office 365 E3, Office 365 E1

·   Frontline – Microsoft 365 F3, Microsoft 365 F1, Office 365 F3

·   Government (GCC, GCCH, DOD) – Microsoft 365 G3, Office 365 G3, Office 365G1, Microsoft 365 G3, Microsoft 365 G1

·   SMB – Microsoft 365 Business Premium, Microsoft 365 BusinessStandard, Microsoft 365 Business Basic


Currently included with Microsoft 365 E5 and Office 365 E5, Microsoft have come to see dial-in as an important part of the complete Teams experience.This change will be effective in March 2022.


To be clear, Microsoft are not increasing prices because of this change. Extending dial-in capabilities across the SKUs is simply the latest example of how they regularly deliver new value to support the changing needs of our customers. These changes will go into effect in six months, ensuring that our customer and you, as partners, have the time and the information required to plan together.


As leaders around the world look to empower their people for amore flexible, hybrid world of work, it's clear that every organisation will need a new operating model across people, places, and processes. Microsoft are committed to building on the value they’ve delivered over the past decade to continuously provide new innovation that helps our customers succeed and thrive today and well into the future.


Next steps

Read the blog post.

Ensure your customers are aware of the first substantive update to the Microsoft 365 list prices and are appropriately taking them into account as they plan future spend.

Use the customer-facing deck to emphasise the value added over the past decade, and the six months of notification.

Use the FAQ to answer customer questions.