Sharp price hike for Microsoft 365 cause for irritation
Posted by batterymap01
from the Business category at
14 Jan 2025 12:45:43 am.
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Microsoft has notified users of itsMicrosoft 365 suitein six countries about hefty price increases when renewing their subscriptions.
The company claims that the increases are necessary to ensure that Microsoft customers are among the first to access powerful AI features in its apps.
Last week, subscribers in Asia received emails about the upcoming price increases. An annual Microsoft 365 Family subscription in Australia will increase from AU$139 to AU$179 (converted from 83.57 euros to 107.64 euros) when renewed, an increase of nearly 29 percent. For Microsoft 365 Personal subscriptions, the price will rise from AU$109 to AU$159 (from 65.55 euros to 95.61 euros), an increase of nearly 46 percent. Microsoft’s Australian website currently displays these prices as standard. The price increases have been announced for Australia, New Zealand, Malaysia, Singapore, Taiwan and Thailand.
New features added
A Microsoft spokesperson stated that the price changes reflect the extensive subscription benefits Microsoft has added over the past 12 years, including advanced security with Microsoft Defender and creative tools such as Clipchamp. This is in addition to numerous improvements in Word, Excel, PowerPoint, OneNote, and Outlook. According to the spokesperson, the price changes also include new features such as Microsoft Copilot and Microsoft Designer.
The spokesperson added that the enhancements are not mandatory. Subscribers can opt for a cheaper version of Microsoft 365 without Copilot.
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Alternative subscriptions and ambiguities
A Microsoft 365 Classic option is available without the price increases, but many users report it is difficult to find. For example, the alternative appears only when cancelling a subscription. And users find the process confusing or cumbersome. Even with search engines like Bing (from Microsoft) and Google, finding details about this suite proves difficult.
In March 2024, however, Microsoft didpromise tooffer Office editions under perpetual licenses, albeit without associated cloud services.
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Negative reactions
The announcement provoked many negative reactions online. Users accused Microsoft of inflating prices. Microsoft has not answered whether these price increases will be implemented elsewhere. It is also unclear whether the price increases will affect business licenses. The company stated that the goal of the changes is to listen, learn, and improve based on customer feedback.
Microsoft has pledged to invest as much as $80 billion in datacenters by 2025, primarily for AI applications. The cost of these investments appears to be passed on to customers. However, this is meeting resistance, especially since many AI features Microsoft offers are available for free from other providers.
Tags: Microsoft 365
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