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Office 365 Price & Subscription Term Changes From March 2022

Helping you to keep your Microsoft 365 costs low

Microsoft have recently announced a price rise of between 9% and 25% on some of the most popular Microsoft 365 solutions. UK Sterling price increases have not yet been confirmed but we expect them to be at similar levels. We expect UK pricing to be confirmed in by the end of December 2021 with the increases coming into effect from 1st March 2022.

Since the announcement, Outsourced IT have been working out how we can best help our customers beat this price rise and keep costs as low as possible on their Microsoft 365 services.

What if I do nothing?

If you take no action, your Office 365 licensing costs will increase from March 2022.  Outsourced IT are offering you the opportunity to lock in your current price until February 2023 with an annual renewal paid in full on renewal.


What options do I have?

Option 1 – Monthly Term

Microsoft will still offer monthly subscriptions as per the current, and most flexible model but this term will incur a 20% increase in price for the flexibility.

Option 2 – Annual Term

This term will lock in the price of the license for the duration of the term.  Additional licences can be added at any point, but the overall license count cannot be reduced until the initial 12 month term has past. 

Option 3 – Multi-Year Term

We will not be offering the 3 year term from the outset as we feel this is too restrictive for the minimal cost saving a multi year term brings.

There will be an option to mix licences on different terms which will be useful where staff numbers may fluctuate at different times of the year.  All licences can be cancelled within the first 72 hours without penalty. 

How are Microsoft justifying the price increase?

Microsoft have not increased the Office 365 pricing for 10 years and over this period, many new features and additonal storage has been added.