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Microsoft said it is increasing prices for some of its commercial subscriptions Microsoft 365 and Office 365 bundles. The offerings include popular apps like Excel and Word.

The price bumps were announced by Jared Spataro, Microsoft 365 Corporate’s Veep, who said that they are the first substantive pricing updates since the launch of Office 365 over ten years ago. Microsoft 365 is more expansive, bundling some office tools with Windows, Enterprise Mobility, and Security.

Over the years, it has expanded to incorporate other products like Teams, the Power Platform application development tools, and the Whiteboard collaborative app.

The changes

Spataro said that the updated price reflects the increased value Microsoft has delivered to customers on the business subscription plans over the past ten years.

Given that the company’s Office tool remains its top product in terms of sales and that most Office revenue comes from subscriptions tied to businesses, it is likely that the price bump will translate to better revenue and profit numbers.

The new prices will come into effect on March 1, next year. Users should expect the following changes:

  • Microsoft 365 E3 (from $32 to $36)
  • Office 365 E1 (from $8 to $10)
  • Office 365 E3 (from $20 to $23)
  • Office 365 E5 (from $35 to $38)
  • Microsoft 365 Business Basic (from $5 to $6 per user)
  • Microsoft 365 Business Premium (from $20 to $22)

The price increase will apply across all markets, with local adjustments for some regions. The prices for Microsoft 365’s education and consumer products will not change, according to Spataro.

The official also mentioned the success of Microsoft 365, saying that it helped the company to sell more Office subscriptions to front-line users like cashiers who do not necessarily spend all day at a computer screen, leading to significant growth.