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Since its initial launch, Office 365 has increased in value while remaining the same price.

There have been some small price changes over the years, but Microsoft's phrasing is accurate. This is the first "substantive pricing update" for Office 365 since it launched ten years ago, according to Microsoft. The consumer, education, and Microsoft 365 E5 versions of Microsoft 365 will not increase in price. The largest increase is for a Microsoft 365 E3 subscription, which will go up by $48 per year per user. The increased prices will go into effect on March 1, 2022. The tech giant has also added more than 20 apps to Office 365 since it originally launched, including Microsoft Teams, OneDrive and SharePoint.Microsoft announced changes to the prices of several Office 365 and Microsoft 365 subscriptions.

The changes follow a period of immense growth for Microsoft and its cloud services the firm recently surpassed the milestone valuation of $2 trillion and it has more than 300 million paid seats for Office 365.

"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." "As leaders around the world look to empower their people for a more flexible, hybrid world of work, it's clear that every organisation will need a new operating model across people, places, and processes," Spataro wrote in a blog post. The reasoning for hiking them up now is partly to do with the higher demand for cloud-based services brought about by the pandemic, according to Jared Spataro, the corporate vice president for Microsoft 365. These are the first "substantive" price increases to Office 365 since it was launched a decade ago, according to Microsoft, with only minor changes to the suites coming in over the last ten years. Office 365 E1 will rise from $8 to $10, Office 365 E3 will jump up from $20 to $23, Office 365 E5 will move from $35 to $38 and Microsoft 365 E3 changes from $32 to $36. The increase will also apply globally, with local market adjustments for certain regions, however only US pricing is available at present: Microsoft 365 Business Basic is going up from $5 to $6 per user and Microsoft 365 Business Premium will increase from $20 to $22.