If you haven’t heard yet, there is a Microsoft Office 365 price increase coming in March, the first major increase since the platform’s launch. While there have been smaller adjustments in the past due to currency fluctuations, this rise is much more significant. Early reports suggest businesses could face an increase of between 20–40%, based on figures already released in the US market.
At Commercial Networks, we’re helping our clients prepare for this shift. But this change is not only about higher costs, it’s about how Microsoft delivers Microsoft 365 going forward.
Why the Microsoft Office 365 Price Increase Matters
Microsoft 365 has become a cornerstone of business operations, from Word and Excel to Teams and OneDrive. For many organisations it’s essential.
This makes the upcoming price increase more than just an inconvenience. It could significantly impact budgets, especially for businesses already working within tight margins.
At the same time, Microsoft is changing how subscriptions are billed and renewed, reducing the flexibility that many businesses have relied on in recent years.
What’s Changing with Microsoft 365 Pricing?
The key changes are around subscription commitments:
- Monthly Subscriptions – Still available, but subject to higher pricing.
- 12-Month Subscriptions – By committing to a year-long contract, you can lock in your current price for 12 months.
On the surface, the annual option seems like the safer bet, but there are important caveats.
The Risks of a 12-Month Commitment
While a 12-month plan can shield you from immediate price increases, it comes with restrictions:
- No License Reductions – If staffing levels fall, you’ll still pay for the licences you committed to.
- Limited Change Window – Microsoft will only allow changes during a 72-hour renewal period. If this falls on a bank holiday or busy season, you risk missing the opportunity to adjust.
This makes forward planning essential.
How to Protect Your Business Against the Price Rise
Thankfully, there are steps you can take now to reduce the impact:
1. Act Early
At Commercial Networks, we’ve updated our systems to alert account managers five days before renewals. This ensures our clients are prepared well before the 72-hour window begins, helping avoid costly oversights.
2. Consider Annual Commitments
If you expect staffing to remain stable, or grow, committing to a 12-month plan can lock in current rates and avoid the higher monthly costs.
3. Stay Flexible with Your IT Provider
If your Microsoft 365 subscription is managed by an IT provider, switching mid-contract may not be possible. Work with a provider that proactively manages renewals and helps you assess your options.
Should You Act Now?
The Microsoft 365 price increase is more than just a cost rise, it’s a change in how businesses need to plan and manage licences. Whether you choose to remain on a monthly plan or move to an annual commitment, preparation is key.
At Commercial Networks, we’ll guide you through the process, helping you lock in pricing, avoid common pitfalls, and ensure your subscription matches your business needs.
📞 Call us on 0333 444 3455 or email sales@cnltd.co.uk to discuss the best approach for your business before the new prices come into effect.
