Microsoft 365 price increase explained

Microsoft have announced that their cloud subscription licensing – Microsoft 365 , is increasing in price for many customers outside of the U.S. from the 1st April 2023. The move has caught some people by surprise, but has been in the making and reflects the current global economic climate.

Below we’ll explain everything behind the price increase: where the price is increasing (or decreasing), how much by, which products are affected, and the reasons Microsoft have given for the change. We’ll also explore which products are affected by the change, and what this change means for the future of Microsoft’s cloud services.

Why is the Microsoft 365 price increasing?

For some time now, Microsoft has maintained separate pricing strategies for different currencies. Unfortunately, the current economic climate has led to wild fluctuations in the value of different global currencies, which has pulled some of them away from the value of the U.S. dollar. As a result, Microsoft has decided to change local pricing across the world to bring it back in line with the value of the dollar.

As of 1st April 2023, global prices for Microsoft’s cloud products will change to reflect the value of these currencies. In the majority of cases, prices will rise, but there are some countries with robust currencies where prices are due to fall. The primary currencies are the Euro, Pound Sterling, Swedish Krona, Norwegian Krone and Danish Krone.

The price change is consistent across all cloud product offerings and all packages. This means that prices will change by the same amount for all customers, including commercial, public sector, educational facilities and government clients. Microsoft is expected to review its pricing biannually from this point on, reflecting any fluctuations in the value of the dollar.

How much is the Microsoft 365 price increasing by?

As of 1st April 2023, prices for all Microsoft cloud services are expected to rise in the following currencies:

British Pound (GBP): up 9%

Danish Krone (DKK): up 11%

Norwegian Krone (NOK): up 11%

Swedish Krona (SEK): up 11%

Prices have also fallen in recent months in countries such as New Zealand and Taiwan. This follows on the back of changes to the pricing structure of Azure under the New Commerce Experience (NCE), which saw products rise by as much as 20%. This new price rise stacks on top of those price rises, meaning a significant change in a short period of time.

Please note the confirmed final increase will not actually be known until Microsoft publish their new price late in March.

Which products and services are affected?

All Microsoft cloud products will be subject to the price increase. These include:

  • Microsoft 365 E3
  • Microsoft 365 E5
  • All Microsoft 365 Business Plans
  • All Office 365 plans
  • All Microsoft Dynamics 365 licences

Existing seat-based (per user per month) subscriptions will continue to be charged at their original billing price for the length of the contract. Any additional seats added after 1st April 2023 will be billed at the new price, as will any new or renewed subscriptions.

How Sota can help?

As a specialist Microsoft Gold Partner, Sota provides a managed Microsoft 365 service including consultancy, design and support, maximising the value you get out of your Microsoft 365 package. To discuss the changes to Microsoft 365 pricing and how they affect your business, or for any other information, get in touch with one of our Microsoft 365 specialists today.


View all

Contact us

  • From time to time we send updates and useful information about our services and industry trends.
  • This field is for validation purposes and should be left unchanged.

Contact us

  • This field is for validation purposes and should be left unchanged.