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Why Microsoft Product Process Going Up? – Must Know

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Windows 365 is a cloud-based program that provides a new style of Windows virtual computer for your end-users called Cloud PCs. Each Cloud PC is assigned to a particular user and acts as their sole Windows device. Microsoft 365’s performance, privacy, and collaboration features are available in Windows 365.

Microsoft’s rates are constantly changing, so it’s critical to remain on top. On February 28th, Microsoft announced price increases for several applications and suites. These changes could impact your business if you’re a Microsoft partner or looking to buy Microsoft software.

Why is Microsoft’s pricing going up? 

Microsoft is introducing adjustments to Microsoft 365 business prices today—the first significant pricing change since Office 365 a decade ago. That new rate represents the improved quality they’ve provided to clients over the last decade.

1. Microsoft 365 Business Basic will go up from $5 to $6 per user per month.

2. Microsoft 365 Business Premium will see an increase of $22 from $20 per user per month.

3. Office 365 E1 will increase from $8 to $10 per user per month.

4.  Microsoft 365 E3 will cost $36 per user per month, up from $32 now. (Unlike the other goods on this list, it comes with a Windows version.)

5. Office 365 E3 will cost $23 per user per month, up from $20.

6. The premium Office 365 E5 tier will cost $38, up from $35 per user per month.

7. At this moment, Microsoft isn’t raising the price of Microsoft 365 E5, which costs $57 per subscriber each month. These hikes will be implemented globally, with some regional market changes. 

At this moment, there are no price increases for education or consumer products. Microsoft 365 is one of the most widely used cloud productivity applications globally, with millions of users. Many businesses and individuals have relied on Microsoft’s Office suite (Word, Excel, PowerPoint, and Outlook) for decades and have converted to the cloud version.

Microsoft cites several reasons for the need to raise pricing, including the addition of new applications over time.

Another major thing is security. Microsoft 365 now includes extra security capabilities to assist businesses in better securing their accounts and data as cybersecurity threats have become more frequent.

A few of these capabilities are encrypting email messages and attachments before transmission. Another feature is data loss protection, which helps prevent sensitive information from being shared by accident.

Another area where Microsoft has provided many options for businesses is compliance requirements for data protection. eDiscovery and core Litigation Hold are examples of this. Due to the epidemic, virtual meetings and team communication have become even more critical. Microsoft has invested an outstanding amount of time and effort in this area. Microsoft Teams has seen some improvements in recent years, allowing businesses to establish more meaningful and effective online connections with team members and users.

FAQ on Microsoft’s Price Increase  

What is the reason behind Microsoft’s pricing hike for Microsoft 365?

It is the first significant price change since the debut of Office 365 in June 2011. On March 1, 2022, this change will take effect.

This update builds on the product innovation we’ve given over the last ten years to address evolving consumer needs, with 25 new apps and over 1400 features introduced since its debut, including:

  • Microsoft Teams was introduced as the only solution for conferences, messages, calls, cooperation, and the automation of business procedures.
  • Data loss prevention (DLP) for documents and emails, Office communications encryption, and attack surface reduction capabilities are new features.
  • New AI-powered features have been added to help us automate chores, gather the info we need, and connect in more accessible ways.”
  • With Power Platform, Whiteboard, Lists, Planner, Shifts, Forms, and SharePoint, they also launched a new category of collaborative applications in Teams. Companies include Adobe, Atlassian, Salesforce, SAP, ServiceNow, & Workday.

What implications would this new price have on current customers?

Current users will be unaffected until their next subscription, which will occur on or after March 1, 2022.

What subscription programs are affected by the revised pricing?

Commercial Volume Licensing, CSP, and Web Direct all have new prices. Customers in the consumer and education sectors are excluded.

What features will be included with the new $0 add-on SKU for Audio Conferencing?

The Audio Conferencing subscription is currently available in areas where the Audio Conferencing SKU will feature unlimited dial-in. The SKU will also contain 60 minutes of dial-out per license in the US and Canada.

In which channels will the new $0 Audio Conferencing add-on SKU be offered?

This product is available through all distribution channels, including Volume Licensing, CSP, and Web Direct.

Is there any impact on the user when removing the current license and enabling the new request if a customer has Audio Conferencing licenses active and wishes to take advantage of the new Audio Conferencing select dial-out SKU?

There are no modifications or impacts to the user if the tenant admin activates the Audio Conferencing pick dial-out SKU while they disable the existing Audio Conferencing subscription.

To Wrap Up

Microsoft 365 is changing its pricing approach, and the specifics are still working out. We’ll keep you updated as soon as we learn more.

As leaders worldwide seek to equip their employees for a more flexible workplace setting, it’s apparent that every company will require a new business model that spans people, locations, and systems. They are determined to continue to bring changes that enable our users to flourish and prosper today and in the future, adding on the value, they’ve delivered over the last decade.

Although nobody likes spending additional on something, Microsoft has been adding value to what you presently get for free for over a decade and has opted to raise the price slightly. 

Customers’ needs have evolved throughout time, and Microsoft has developed to the challenge. Consider the previous year! Much has changed in the way people interface, work, and live due to technological advancements, and Microsoft’s technology has kept pace! As a result, they slightly increase the price to pay for this improvement. If you consider the additional features they’ve included, it’s reasonable the problem is for you to ensure you’re maximizing the value of their products by using the extra features. 

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