What you need to know about a potential Microsoft 365 price increase in your business.

As of early 2023, Microsoft 365 will change its pricing structure, impacting all user and software licenses. All licenses are now to be priced in USD, as a way of creating consistency across all nations and regions.

If you are a Microsoft customer from outside the United States, your pricing will be based on the exchange rate fluctuations of your currency against the USD, rather than being set for your region.

This means adjustments may see your prices rise, or fall, depending on your local currency value in comparison to the USD prices.

So, for the UK specifically, this will mean you will no longer see prices at a fixed GBP price, but rather they will change according to the value of the GBP against the USD.

Hnd holding a phone displaying the Microsoft 365 logo in front of a desktop

To ensure this pricing is up to date and consistent with that of the USD, it will be reviewed by Microsoft every 6 months. So, again for the UK, this may mean you see a big Microsoft 365 price increase until the pound strengthens against the dollar.

It is important to note that, now we have reached the date that these changes are to be implemented, those organisations on 12-month contracts will not see any changes in prices until it comes to their contract renewal date. However, those organisations operating on a month-to-month contract will see immediate rate changes to that set by Microsoft.

This is a change that will impact all Microsoft customers, both direct and indirect. This price change is unavoidable and will see everyone operating under the contractual obligations and pricing policies moving forward. It is key to note this Microsoft 365 price increase in order to stay on top of your IT expenses moving deeper into 2023, as this is a development to previous price structure changes.


When are the Microsoft 365 prices changing?

These price changes will occur in early 2023, or will update when your current contract renews. 

Why are Microsoft 365 prices increasing?

Microsoft are changing their pricing structure to create consistency across all nations. All licenses are now priced in USD and, for those customers outside the USA, prices will fall in line with the exchange rate in their particular region - so their prices may fluctuate.