Microsoft 365 licensing prices are changing in 2022. Here is what you need to know.

Microsoft has announced an update to its commercial pricing for Microsoft 365, which will take effect from the 1st of March 2022.

The pricing update intends to build on the product innovation that Microsoft has delivered over the past ten years to meet the changing needs of customers. Over the past decade, Microsoft has delivered innovation in three key areas:

  • Communications and collaboration
  • Security and compliance
  • AI and automation.

Microsoft has created 25 new apps and more than 1400 new features have been added to the Microsoft 365 ecosystem since initial release. Some of the key features include:

  • Introduction of Microsoft Teams
  • Capabilities in Data Loss Prevention (DLP), office messaging encryption and attack surface reduction
  • Artificial Intelligence capabilities that help automate tasks, find information we need and help communicate in ways that are more accessible for everyone.

What does this mean for customers?

From the 1st of March 2022, for new or existing customers, there will be an increase in prices for the following licenses:


• Microsoft 365 E3 (from $32 to $36)
• Office 365 E5 (from $35 to $38)
• Office 365 E3 (from $20 to $23)
• Office 365 E1 (from $8 to $10)


• Microsoft 365 Business Basic (from $5 to $6)
• Microsoft 365 Business Premium (from $20 to $22)

All pricing is per user per month. These increases will apply globally with local market adjustments for certain regions. There are no changes to pricing for education and consumer products currently.

Recommended next steps

It is important to be aware of these pricing changes and how they may impact you. However, this is also an opportunity to re-evaluate your current use of Microsoft 365 and licensing with Microsoft, to ensure you are utilising the platform fully and getting the most out of the services and products available to you.

Incremental can assist you in understanding the services and products you use and identify any areas in which you could take advantage of, whether it is in communication and collaboration, adoption, or business process automation. Incremental’s Microsoft 365 Optimisation Assessment helps organisations understand their current working patterns and identifies where Microsoft 365 services can be used to improve these. Any organisation with a presence in Microsoft 365 can harness the benefits of this assessment to drive productivity and value from their license. To learn more, visit Microsoft 365 Optimisation Assessment.