Microsoft announced on Thursday that it would hike prices for a software package called Microsoft 365, which includes popular apps like Teams and Outlook, by up to 20 percent.
The increases will take effect within six months, Microsoft said in a blog post announcing the change.
The Microsoft 365 suite is the cornerstone of the company’s productivity and business process segment, which posted revenue of $ 53.9 billion (approximately 12.50.268 crores) in the last fiscal year.
The increases will affect commercial customers and are the first since Microsoft launched the service a decade ago. Jared Spataro, corporate vice president for Microsoft 365, said the company has added two dozen apps to the suite since it was launched.
“This updated pricing reflects the added value we have offered our customers over the past 10 years,” Spataro said in the post.
At the lower end, the Microsoft 365 Business Basic plans are up 20 percent from $ 5 (about a smaller increase of 12.5 percent from $ 32 (about Rs. 2,381) to $ 36 (about Rs. 2,680) per user.
Microsoft said it won’t change prices for the consumer or educational versions of the software.
Microsoft’s shares hit a record high on Thursday, most recently rising 1.8 percent to $ 295.96 (around 22,026 rupees).
© Thomson Reuters 2021
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