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NEW PRICING FOR MICROSOFT 365
By
* Jared Spataro Corporate Vice President for Microsoft 365
August 19, 2021
*
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*
* Enterprise Mobility + Security
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* Microsoft Stream
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more
Today we are announcing changes to our commercial pricing for Microsoft 365—the
first substantive pricing update since we launched Office 365 a decade ago. This
updated pricing reflects the increased value we have delivered to our customers
over the past 10 years. Let’s take a look at some of the innovations we’ve
delivered over the past decade in three key areas—communications and
collaboration, security and compliance, and AI and automation—as well as the
addition of audio conferencing capabilities that we’re announcing today.
A DECADE OF CONTINUOUS INNOVATION
Since its launch a decade ago, Office 365 has grown to over 300 million
commercial paid seats. Along the way, we have continuously re-invested to meet
the changing needs of our customers. Four years ago, we introduced Microsoft 365
to bring together the best of Office, Windows, and Enterprise Mobility and
Security (EMS). That same year we added Microsoft Teams as the only integrated
solution where you can meet, chat, call, collaborate, and automate business
processes—right in the flow of work.
In fact, since introducing Microsoft 365 we have added 24 apps1 to the
suites—Microsoft Teams, Power Apps, Power BI, Power Automate, Stream, Planner,
Visio, OneDrive, Yammer, and Whiteboard—and have released over 1,400 new
features and capabilities in three key areas.
1. Communication and collaboration. Microsoft Teams is the new front end across
work, life, and learning for more than 250 million monthly active users. We
launched Teams in 2017 as the only integrated solution where you can meet, chat,
call, collaborate, and automate business processes—with the power of the Office
apps—all within the flow of work. In 2020 alone we released over 300 new
capabilities including Together mode, background effects, large gallery view,
raise hand, live reactions, breakout rooms, live captions with speaker
attribution, and Fluid components, just to name a few.
We introduced a new category of collaborative applications in Teams, empowering
people and organizations for hybrid work through deep integrations with Power
Platform, Whiteboard, Lists, Planner, Shifts, Forms, and SharePoint. Companies
like Adobe, Atlassian, Salesforce, SAP, ServiceNow, and Workday have built apps
that deeply integrate with Teams, bringing business processes and functions
directly into the flow of work.
We continue to innovate on both real-time and asynchronous collaboration. We
introduced real-time collaboration in Word, Excel, and PowerPoint desktop apps
while a growing set of capabilities like @mentions, assign tasks, modern
comments, and auto-save have streamlined the collaboration experience. We’ve
added and expanded OneDrive cloud storage and the Exchange Online mailboxes.
2. Security and compliance. The cybersecurity landscape is more complex than
ever. With the accelerating volume, sophistication, and scale of cyberattacks,
security and compliance are a priority for every organization. Since we first
introduced Microsoft 365, we have added new attack surface reduction
capabilities to help organizations defend against ransomware and other threats.
We have added capabilities like data loss prevention (DLP) for email and
documents, sensitivity labels, and message encryption to help keep important
data within the organization. And we have added powerful compliance capabilities
that help organizations reduce risk and respond to increasing regulatory
requirements such as Content Search, eDiscovery, and core Litigation Hold.
Built-in mobile device management (MDM) and other management tools like
Microsoft Endpoint Manager help admins support remote and hybrid workforces.
3. AI and automation. Over the past decade, we have infused AI capabilities
across our productivity and collaboration applications to help everyone achieve
more. Across Microsoft 365, we have introduced AI-powered innovations to help
users be better writers, designers, and presenters. Cloud-powered AI now
automatically creates maps, charts, and tables in Excel, and sorts email and
removes clutter in Outlook. And AI-powered real-time translation, captions, and
transcription make collaboration and communication more accessible and engaging
for everyone.
EXTENDING AUDIO CONFERENCING CAPABILITIES
And today, we are announcing that we will add unlimited dial-in capabilities for
Microsoft Teams meetings across our enterprise, business, frontline, and
government suites over the next few months. Even as cloud connectivity
increases, we know that people join Teams meetings while they are on the go or
struggling with a bad internet connection. Currently included with Microsoft 365
E5 and Office 365 E5, we have come to see dial-in as an important part of the
complete Teams experience. Available with subscription in over 70 countries and
with interactive support in 44 languages and dialects, unlimited dial-in
provides peace of mind that users will be able to join their Microsoft Teams
meeting from virtually any device regardless of location.
NEW PRICING
The pricing changes we are announcing today will go into effect in six months.
On March 1, 2022, we will update our list pricing for the following commercial
products: Microsoft 365 Business Basic (from $5 to $6 per user), Microsoft 365
Business Premium (from $20 to $22), Office 365 E1 (from $8 to $10), Office 365
E3 (from $20 to $23), Office 365 E5 (from $35 to $38), and Microsoft 365 E3
(from $32 to $36). These increases will apply globally with local market
adjustments for certain regions. There are no changes to pricing for education
and consumer products at this time.
As leaders around the world look to empower their people for a more flexible,
hybrid world of work, it’s clear that every organization will need a new
operating model across people, places, and processes. We’re committed to
building on the value we’ve delivered over the past decade to continuously
provide innovation that helps our customers succeed and thrive today and well
into the future.
--------------------------------------------------------------------------------
1At launch in June 2011, Office 365 included Word, Excel, PowerPoint, Outlook,
Lync, Exchange, and InfoPath. We’ve since expanded to add other apps – in whole
or in part – and entirely new capabilities including: Access, Bookings, Delve,
Forms, GroupMe, Kaizala, Lens, Lists, OneDrive, OneNote Class Notebook, Planner,
Power Apps, Power Automate, Power BI, Publisher, SharePoint, Staff Hub, Stream,
Sway, Teams, To-Do, Visio, Whiteboard, and Yammer.
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