Microsoft to raise prices of some flagship products by as much as 20%

Microsoft will be raising the price of its software bundle called Microsoft 365 by 20 per cent, according to a blog post shared on its official website. The increase will take effect within the next six months and will affect only commercial customers.

Microsoft rationalises this move with the value offered to businesses over the past ten years through key areas such as communications and collaboration, security and compliance, and AI and automation.

“This updated pricing reflects the increased value we have delivered to our customers over the past ten years,” Corporate Vice President for Microsoft 365, Jared Spataro said in the post.

The Microsoft 365 suite accounted for approximately a third of the software giant’s $168 billion in sales in the last fiscal year. It is the cornerstone of the company’s business process segment. The recently announced increase in pricing marks the first in over a decade.

According to Microsoft, customer and education versions of the software will experience no changes in pricing.