Microsoft 365 Government price updates - into effect March 1st 2023

On August 2021 we announced an update to our pricing for Microsoft 365 (which applies to all commercial customers: Enterprise, US Government, and Business). You can find the full blog from our initial announcement here: New pricing for Microsoft 365 | Microsoft 365 Blog.

In the case of Microsoft 365 Government, due to local regulations, the price update was planned in a phased manner. Therefore, on March 1, 2023, the updated prices will be effective for the following suites:

Office 365 G1 (+10%), Office 365 G3 (+5%), and Microsoft 365 G3 (+2%)

This price update builds on the product innovation we’ve delivered over the past several years to meet the changing needs of customers. Since the initial release we’ve added new capabilities such as Teams, PowerApps, Power Automate, Microsoft Purview, Microsoft Defender, Whiteboard and many more applications and features (2).

This includes the introduction of Microsoft Teams as the only solution with meetings, chats, calls, collaboration, and the ability to automate business processes. We have added capabilities like data loss prevention (DLP) for documents and emails, Office messaging encryption, and attack surface reduction capabilities. And we have added new artificial intelligence (AI)-supported capabilities that help automate tasks, find the information we need, and help us communicate in ways that are more accessible for everyone.

We also announced the extension of unlimited dial-in across our paid enterprise, business, frontline, and government suites, enabling users to dial-in and join a Teams meeting from virtually any device.

If you’re a Microsoft 365 Government customer and have questions about your licensing plans, please reach out to your Microsoft account team or partner for support.

1Following the phased pricing update, Office 365 G1 will also increase in March 2024 by 10% and in March 2025 by 5%.

2Please note that product available will vary by cloud environment please reference the Microsoft 365 Government service descriptions and Microsoft 365 Roadmap for more information.

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