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Price hikes. Upsetting, but ultimately, inevitable. Microsoft is now preparing a price increase for subscribers of the Office 365 cloud based productivity service.

Enterprise customers of the Office 365 suite that do not have a software assurance plan will be greeted with a 15% increase in price, starting this August. However, customers with a software assurance plan will not be affected by this hike now or at the time they renew their contracts.

This news comes with some balancing developments too, in order to cool the effect of the price increase. More on that below, but first some comments from a company spokesperson:

“The vast majority of our customers will not see an increase in the cost of Office 365. All existing Office 365 EA customers are guaranteed prices will not change for the duration of their agreement.

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New Office 365 EA customers who don’t have a previous investment in our products will see an increase to align our pricing to our other channels. We are always evaluating our pricing to maximize the value to our customers as we continue to add more features and benefits to Office 365.”

Onto the balancing act, then.

The company is also planning a few big discounts for subscriptions to ensure that the cloud based service is still affordable to all customers. Some expected price changes are listed at the source above.

An E1 Office 365 subscription is to have a price tag of $8, while E3 and E4 will now be a tad more expensive at $20 and $22. Not official right now, but we probably will get an official announcement from Microsoft in the coming weeks.

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  1. A slight increase is natural with inflation, but 15%?! That seems way too steep to me. A little outrageous I think.

  2. 15% Seems like a big one-time jump

    • Yep. They also tried so spin it and say the majority won’t face the price increase. While that is true, that still doesn’t make up for the 15% jump that some customers will see. Too excessive.

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