Microsoft to hike price of some flagship products by 20%

Microsoft said it will increase price of Microsoft 365 that includes popular apps like Teams and Outlook by as much as 20 percent.
The increases will take effect within six months, Microsoft said in a blog post announcing the change in the price.

The Microsoft 365 suite is the cornerstone of the company’s productivity and business process segment, which had sales of $53.9 billion in its most recent fiscal year, about a third of Microsoft’s overall $168 billion in sales.

The increases will affect commercial customers and are the first since Microsoft rolled out the service a decade ago. Jared Spataro, corporate vice president for Microsoft 365, said the company has added two dozen apps to the suite since it launched.

“This updated pricing reflects the increased value we have delivered to our customers over the past 10 years,” Jared Spataro said in the post.

At the low end, basic business plans will increase 20 percent from $5 per user to $6, while the highest-end versions of the suite will have a smaller increase of 12.5 percent from $32 to $36 per user.

Microsoft said it is not changing prices for the consumer or education versions of the software.