Microsoft has advised users of its M365 suite in six Asia-Pacific nations they face big price rises when they renew subscriptions.
We’re told these hikes are needed to “ensure Microsoft customers are among the first to access powerful AI features in our apps.”
News of the price rises arrived in emails sent to subscribers last week. An annual Microsoft 365 Family subscription that, when next renewed, will rise from AU$139.00 to AU$179 ($85.50 to $110) – just under 29 percent.
Screenshots have also circulated of emails sent to holders of M365 Personal subscriptions that will rise from AU$109.00 to AU$159 ($67 to $98) or almost 46 percent. Microsoft’s Australian web site lists $159 and $179 as the current price points for Personal and Family subscriptions.
The price rises have been flagged in Australia, New Zealand, Malaysia, Singapore, Taiwan, and Thailand.
Regarding these increases, a Microsoft spokesperson said:
These price changes reflect the extensive subscription benefits that Microsoft has added over the past 12 years including advanced security with Microsoft Defender, creative tools like Clipchamp, and countless enhancements to Word, Excel, PowerPoint, OneNote, and Outlook, in addition to new features such as Microsoft Copilot and Microsoft Designer.
Microsoft added that the price hikes aren’t mandatory as subscribers can choose to sign up for a lesser version of M365 that does not include Copilot – but chose not to answer a question about whether these price rises will be introduced elsewhere. It’s also unclear if the price rises will come to corporate licenses.
The spokesperson did say the purpose of the changes is to allow Microsoft a chance to “listen, learn, and improve.”
Making changes to prices or products in select countries is a common tactic vendors use to test customer reaction. The six nations chosen for this test are a good fit for such tests, as they enjoy different levels of prosperity and tech adoption.
Reaction to the changes has not been positive. There has been plenty of online commentary accusing Microsoft of price gouging. Australian subscribers seem particularly piqued, as the high cost of living is a major issue down under.
There is also a lot of comment to the effect that it is hard to find the offer to choose a subscription that avoids the price rise, as it only appears when cancelling a subscription.
The Register tried to do so and was offered dialog boxes reading, “I don’t want my subscription,” and “I want to keep my benefits”, and stopped the process at that point out of fear deleting family data could result from either.
We also searched for “M365 Classic” after a Microsoft spokesperson told us “A Classic SKU” is the alternative to the higher prices, and could find no details of such a package using both Microsoft’s Bing search engine and Google. However in March 2024 Microsoft did commit to offer a pair of Office editions under perpetual licenses, albeit without accompanying cloud services.
Microsoft recently promised to spend $80 billion on datacenters in 2025 alone, most of them to run AI applications. Someone’s got to pay for that level of investment and these price rises in Asia suggest Microsoft customers will foot the bill.
Or maybe not, given the reaction seen to these increases – plenty of which points out that many AI features in M365 are offered for free by other providers.
Andres Victorero Rey via Vecteezy
"*" indicates required fields
Software Asset Management is a business practice that involves managing and optimising the life cycle of software within an organisation.
Software asset management is relevant to many facets of a business - take a look at some of the roles that it can form part of the focus of.
Software vendors come in all shape and sizes - all with their own set of licensing models and rules. We take a look at just a few of them.
As a constantly evolving subject, SAM is not without its challenges. We take a look at some of the most common ones.
Wondering what an investment in SAM could do for your business? Fill out a few details and find out what return you could get!
Answer a few questions about your SAM infrastructure & experience, and we'll put together a personalised recommendation for the future.
A simple health check of what's being used across your Office 365 estate in this FREE, Microsoft backed and easy to setup review.
Just like you would with your vehicle each year, get an annual check up of your software asset management programme.
Overwhelmed by the task of documenting the steps for a successful SAM programme? Get the experts in to help!
Concerned your SAM tools aren't covering your whole estate? Or on the look out for an entirely new tool? Get us in to assist.
Not content with covering all things SAM related, we've teamed up with Capital to provide a comprehensive hardware asset management review.
A simple, one-time reconciliation of the software you have deployed versus the licence entitlement you own.
A regularly scheduled analysis of your organisation's estate, specifically adapted to your needs and budget.
A full appraisal of your Microsoft 365 setup and how best to optimise it through automated recommendations.
An add-on to our SAMplicity One, MOT and Plus offerings, quickly diagnose your ability to migrate your resources to the cloud.
In collaboration with law firm Addleshaw Goddard, ensure the legality of your SAM programme and get assistance with any contract disputes.
Available as standard with SAMplicity Plus, ensure you're compliant if you're unexpectedly audited by a vendor.
We've teamed up with some of the forefront experts in licensing knowledge so you can teach yourself to be an expert too.
Stumped by the continually evolving complexities of SAM? Join us for one of our comprehensive courses, either in-person or online.
It’s chock full of useful advice, exclusive events and interesting articles. Don’t miss out!