Microsoft SPLA and 365 Licensing Price Changes

Microsoft has announced their first price increase for Office 365 and Microsoft 365 services in a decade. These price increases will go into effect in early 2022.  There are two components to the price increase:

  • Microsoft Service Provider License Agreement (SPLA) increases.
  • Microsoft Office 365 increases.

Microsoft SPLA Price Increases

At OneNeck, we offer Microsoft licensing to our clients through the SPLA program for Microsoft Windows operating systems and applications.  This is a convenient way for our clients to source the software as part of the services they consume from us, as the licensing is provided for a contracted term and paid on a monthly basis.

Effective January 1, 2022, Microsoft is raising the price by 10% for Microsoft Windows Server and Office SKUs offered through the SPLA program. This applies specifically to the product families in the following table.

Screen Shot 2021-11-17 at 1.16.38 PM

These changes are directly tied to the new capabilities available in Windows Server 2022  (which will enable more hybrid and migration solutions) and Office (which is inclusive of the numerous features added over the past decade).

Microsoft Office 365 Increases

On March 1, 2022, Microsoft will update its pricing for the following commercial products: 

  • Microsoft 365 Business Basic (from $5 to $6 per user)
  • Microsoft 365 Business Premium (from $20 to $22)
  • Office 365 E1 (from $8 to $10)
  • Office 365 E3 (from $20 to $23)
  • Office 365 E5 (from $35 to $38)
  • Microsoft 365 E3 (from $32 to $36)

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.

Additionally, Microsoft announced they are adding unlimited dial-in capabilities for Microsoft Teams meetings across enterprise, business, front-line and government suites over the next few months. While currently included with Microsoft 365 E5 and Office 365 E5, Microsoft has come to see dial-in as an important part of the complete Teams experience since consistent Internet connections are not always available.

We’ve Got Your Back.

While price changes are a given in today’s modern business climate, as an experienced Microsoft Gold Partner, we can work with you to understand the impact and help you make the best decisions regarding your SPLA licensing for your business. Contact your OneNeck account manager today to discuss.

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