Table of Contents

You may also like:

Microsoft Will Raise Prices of Commercial Subscriptions, Stock Price Climbs

Microsoft Will Raise Prices Of Commercial Subscriptions, Stock Price Climbs

Microsoft has not employed any significant price changes to Office 365 since it first launched in 2011. That is about to change. Last week, Microsoft announced that it would raise prices of commercial subscriptions to its bundle of apps. 

At the moment, the Office apps are the company’s top-selling product. Raising price subscriptions will undoubtedly boost Microsoft’s total revenue and profit. Investors and analysts flocked to buy more shares, resulting in Microsoft stock closing at a fresh record on Monday. 

Reportedly, the day ended with Microsoft shares at $304.65 and a market cap at $2.3 trillion. In other words, Microsoft has managed to outpace most of its competition with shares that have grown 37% year-to-date.  

Microsoft Office Suite 

Since a decade ago, when it was launched, the Office Suite has seen tremendous growth. The company continued to grow and innovate to meet the changing needs of its clients. The Office Suite now has over 300 million commercial paid seats and an extensive app directory. Besides Word and Excel, the company has introduced 24 apps to the suite. These include Microsoft Teams, Power Apps, Stream, Planner, Visio, OneDrive, and many more. 

Reportedly, the new prices will become effective as of March 2022, and this is what they will look like: 

– Microsoft 365 Business Basic will go up to $6 per user per month from $5 

– Microsoft 365 Business Premium will move to $22 from $20 

– The Microsoft 365 E3 variant will be $36, compared with $32 today. (Unlike the other products on this list, it includes a version of Windows.) 

– Office 365 E1 will be $10 instead of $8 

– Office 365 E3 will rise to $23 from $20 

– The premium Office 365 E5 tier will cost $38, up from $35 

“We believe the recent announcement highlights the company’s strong competitive positioning and long-term pricing power, helping drive continued ARPU growth through CY22 as well as help drive continued SKU migration to E3 and E5,” commented a group from Goldman Sachs. 

Microsoft is a Force to Be Reckoned With 

Azure, Microsoft’s cloud business, has been competing for a portion of the market share currently dominated by Amazon’s Web Services. In their latest act of smoke and mirrors, Microsoft seems to have come out victorious.   

Reports that Charlie Bell is now listed as vice-president at Microsoft are making headlines. Bell, who has been with Amazon for the last 15 years, was one of the senior managers of its AWS sector and was one of the candidates to replace Jassy as head of AWS. And while it is not yet clear what Bell’s role in Microsoft will be, it is certain that he is no longer with AWS. 

Furthermore, Microsoft has also announced that it will launch a cloud gaming service on Xbox by the end of the year. This stunt will help establish Microsoft in the cloud services sector and attract a portion of the market share (gamers) to its ecosystem.  

Final Thoughts 

Microsoft closed the fourth quarter of 2021 (end of July 2021) very strongly. The earnings report showed that net income had increased by 47%, revenue was up 21%, and earnings per share climbed 49%. 

Microsoft is already a top player in the tech industry. These calculated decisions are designed not to establish but to propel the tech giant even further. 

Risk Disclaimer: The above charts and any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. CFDs are complex instruments and carry a high risk of losing money quickly due to leverage. 81.99% of retail investor accounts lose money when trading CFDs with this provider. The information contained in this market review should not be construed in any way, as containing investment advice and/or a suggestion and/or solicitation for any trading activity and financial transaction. The material is for general information purposes only (whether or not it states any opinions). Nothing in this material is (or should be considered to be) legal, financial, investment or other advice on which reliance should be placed. The data contained in this market review is not necessarily real-time nor accurate. The data and prices on the material are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. There is no guarantee and/or prediction of future performance. EuropeFX, its affiliates, agents, directors or employees do not guarantee the accuracy and validity of any information or data made available and assume no liability as to any loss arising from any investment based on the same. Trading Forex/CFD’s carries a high level of risk and can result in the loss of your whole investment. Forex/CFD’s are leveraged products and therefore Forex/CFD’s trading may not be appropriate for all investors. It is recommended that you do not invest more money than you can afford to lose to avoid significant financial problems in the case of losses. Please make sure you define the maximum risk acceptable for yourself. EuropeFX provides references and links to selected third-party sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the third-party sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered by the third-party sources in the context of the client or prospect’s individual analysis and decision making. No opinion given in the material constitutes a recommendation by Europe FX or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. Although the information set out in this marketing communication is obtained from sources believed to be reliable, Europe FX makes no guarantee as to its accuracy or completeness. All information is indicative and subject to change without notice and may be out of date at any given time. Neither Europe FX nor the author of this material shall be responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein. Seek independent advice if required.