Recently Microsoft announced that there would be changes to the commercial pricing for M365. The first substantive pricing update since Office 365 was launched 10 years ago.

You can read the full press release on Microsoft’s website here


New M365 Pricing Plan Summary:-

The pricing structure as of March 1st 2022 will be as follows:-


Current Price

New Price

% Change

O365 E1




O365 E3




O365 E5




M365 E3




M365 E5




M365 Business Basic




M365 Business Premium





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.

Extended Audio Conferencing Capability:-

One further change is that Microsoft will add unlimited dial-in capabilities for Microsoft Teams meetings across our enterprise, business, frontline, and government suites over the next few months, this capability historically has only been available on M365 E5 and O365 E5 plans.

The plans impacted by this change are:-

  • M365 E3
  • O365 E3
  • O365 E1
  • M365 F3
  • M365 F1
  • O365 F3
  • M365 Business Basic
  • M365 Business Standard
  • M365 Business Premium

Limiting the impact of the price increase:-

Depending on how you purchase your M365 licenses, there could be a way of delaying the impact of the price increase. By renewing an annual subscription anytime before March 1st, you would delay the impact of the price increase until the next renewal date, which could be as much as a year down the line (and still pay monthly).

There is of course the option to remain flexible with a pay as you go model where you can flex licenses up and down on a monthly basis. This will however be charged at the new rate as of March 1st 2022.

Mike Starnes

Mike has worked in the IT Industry for over 20 years. If he's not talking technology, he'll be reading, playing football or trying to embarrass his daughters.