Licensing - Microsoft 365 licensing price set to increase in March 2022

From March 2022, the price of Microsoft 365 licenses will increase. This post describes the upcoming changes.

Last week, Microsoft announced that the price of Microsoft 365 licenses will increase on 1st March 2022. This will affect many Power Apps users, given that a large majority access Power Apps through Microsoft 365 subscriptions.

The screenshot below highlights the current plans as of August 2021.

From March 2022, the following prices will apply:
  • Business Basic - $6 per user/month (increased from $5)
  • Business Premium - $22 per user/month (increased from $20)
The official announcement does not specify the new pricing for the Business Standard plan. The 'Microsoft 365 Apps for business plan' does not apply to Power Apps users as it does not include a Power Apps license.

In terms of the Enterprise plans, the following prices will apply
  • Office 365 E1 - $10 per user/month (increased from $8 to $10)
  • Office 365 E3 - $23 per user/month (increased from $20 to $23)
  • Office 365 E5 - $38 per user/month (increased from $35 to $38)
  • Microsoft 365 E3 - $36 per user/month (from $32 to $36)

The full details of the price increase are detailed in the following Microsoft blog post:

It's not all bad news for all end users though. From October, the cost of Power Apps plans can effectively halve for many users.

It's also worth noting that this price increase applies to business editions of Microsoft 365 only, and not to the consumer/home editions of Microsoft 365.

This is the first significant price increase in almost a decade and as such, Microsoft 365 still offers great value for business users.