Microsoft has announced price increases across a number of its Microsoft 365 licensing plans, meaning many businesses could soon see their monthly subscription costs rise. Depending on the licence, prices are expected to increase by around 5% to 33%, reflecting Microsoft's continued investment in AI powered features, enhanced security and cloud services.

With these changes taking effect, now's the ideal time to review your current Microsoft 365 licences and make sure you're on the right plan, getting the best value, security and functionality for your business.

Why Are Microsoft Prices Increasing?

Microsoft regularly reviews its pricing to reflect ongoing investment in its cloud services, cybersecurity features and productivity tools. As Microsoft 365 continues to evolve, new capabilities are being added across applications such as Outlook, Teams, Word, Excel and SharePoint.

The company is also investing heavily in artificial intelligence, cloud infrastructure and advanced security, all of which contribute to the increasing value of the platform.

For businesses still using older Microsoft 365 plans, the price difference between basic licences and more comprehensive packages is becoming smaller, making higher tier licences more attractive than ever.

Why Microsoft Is Promoting Business Premium

Microsoft 365 Business Premium has become Microsoft's recommended solution for many small and medium sized businesses. Rather than offering just productivity applications, it combines Office apps with enterprise grade security and device management.

Business Premium includes features such as:

• Advanced threat protection for email and files
• Device management through Microsoft Intune
• Identity protection with Microsoft Entra ID
• Built in data protection and compliance tools
• Enhanced protection against ransomware and phishing attacks

For businesses that rely on remote or hybrid working, these additional security features can significantly reduce cyber risks while simplifying IT management.

The Hidden Cost of Staying on Lower Tier Licences

While lower cost Microsoft 365 plans may appear to save money, they often lack the security tools needed to defend against today's cyber threats.

Without advanced email protection, device management or conditional access policies, businesses may become more vulnerable to phishing attacks, compromised accounts and lost or stolen devices.

Recovering from a cyber attack can cost far more than the difference between licence plans. Downtime, lost productivity, reputational damage and potential regulatory penalties can quickly outweigh the monthly saving.

Upgrading isn't simply about accessing more features, it's about reducing business risk.

Better Value Through Consolidation

Many businesses pay separately for services that are already included within Microsoft 365 Business Premium. These might include mobile device management, endpoint protection or additional email security products.

By moving to Business Premium, businesses can often replace several third party solutions with tools that are fully integrated into the Microsoft ecosystem.

This can simplify IT management, reduce administration and potentially lower overall software costs while improving security.

Is Business Premium Right for Your Business?

Every business is different, and not every user requires the same licence. Some staff may only need basic email and Office applications, while others handle sensitive data or work remotely and would benefit from the enhanced protection offered by Business Premium.

A licence review can help identify where upgrades will deliver the greatest value without increasing costs unnecessarily.

Let Edmondson's Help You Get the Most from Microsoft 365

With Microsoft continuing to evolve its licensing and pricing, now is an ideal time to review your Microsoft 365 environment.

At Edmondson's, we can assess your current licences, identify opportunities to improve security and productivity, and recommend the most cost effective licensing strategy for your business.

Whether you're considering a move to Microsoft 365 Business Premium or simply want to ensure you're not paying for licences you don't need, our team can help you make an informed decision while keeping your business secure and prepared for the future.