Wednesday, September 23, 2020

Microsoft jacks price of top-tier Office 365 plan by 59%

Microsoft this week started selling a new premium-priced corporate Office 365 plan at $35 per user per month, a 59% increase from its previous top-of-the-line bundle.

Analyst reaction was mixed to the pricing and the contents of Office 365 Enterprise E5, as the new plan is called. Some view it as a good deal that will attract small- and medium-sized businesses off the bat, others think it overpriced and unlikely to become more than a niche player in Microsoft’s Office-by-subscription portfolio.

“For a small business, it’s an easy way to get business communications that includes everything in one package,” said Andrew Snodgrass, an analyst with Directions on Microsoft, in a Monday interview. “And the price point is fine, right in the target that they’re going for.”

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