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Microsoft Increases Office 365 and Microsoft 365 License Prices

TheJoeMan

They also are actively decreasing the value by sunsetting Publisher in October 2026 [0]. Hilariously, the suggested replacement is PowerPoint, despite it being unable to natively open .pub files. The solution for that? Run a powershell script to convert all your publisher files to (uneditable) PDF.

There are many memes about inserting photos into Word, and the content flying around and breaking. My pet theory is that the younger generation never realized Publisher existed or was included in M365, and used PowerPoint as an everything-is-a-hammer crutch, and have now gotten jobs at Microsoft and are sticking with it.

Also, as far as I can tell, Publisher is the only application where the color-picker includes Pantone colors which is a must for professional poster production. I assume Microsoft is paying a licensing fee for this, and I wonder if they'll remember to cancel it.

Perhaps Affinity can eat their lunch and release a word-processor.

[0] https://support.microsoft.com/en-us/office/microsoft-publish...

quietbritishjim

I used Publisher (2.0! and then 95) quite a bit in the mid to late 1990s. I haven't used it since then because Word now has all the features that were previously exclusive to Publisher, so its purpose has evaporated. It's certainly true that Word has bugs and frustrations but I'd be surprised if Publisher didn't too.

It's very odd that they propose PowerPoint as the Publisher replacement. How do you create a fold out leaflet in PowerPoint!? Maybe most of the people left using Publisher actually only need PowerPoint's features, rather than the full power of Word?

basch

What's crazier is that it actually stops working if installed.

Of the last two times I had to make a flyer, one of the two I pulled up PowerPoint to accomplish. It's not a completely outlandish direction. They should add a Publisher mode that transforms the interface for print document design.

mosura

The reality is DTP outside of pro sectors (i.e. these days InDesign) was rendered worthless by how ubiquitous the tooling was.

In any sector where the barriers to entry are destroyed you either have to go really big or go home.

dybber

And for publisher there probably isn’t the same network effect as for Word/Excel/Powerpoint.

quietbritishjim

Sorry but what does this mean? I can't quite parse it. What tooling was ubiquitous?

xnx

Pretty sure Gemini could create a Slides doc from a PDF of a Publisher file.

Mountain_Skies

Weird that with as much as they're pushing Co-Pilot everywhere, they for some reason can't use it to maintain Publisher. Maybe Co-Pilot isn't as good as Microsoft claims.

acheong08

This feels like a dangerous game they're playing. Yes, there is some lock in, but competitors exist and are better than ever. The new "features" they're justifying this with (Copilot) isn't even something that most people want

Aurornis

Business basic goes from $6 to $7. Business premium is unchanged from $22 to $22.

Price increases are normal. (I’ve been on HN long enough to remember when “raise your prices” was treated as the best startup advice around in HN comments) These price increases aren’t excessive relative to inflation for other services in a business context. I don’t see this as a dangerous game.

> The new "features" they're justifying this with (Copilot) isn't even something that most people want

Most people who comment on HN, maybe. Their average customer is probably demanding it and at risk of switching products if the AI integration is not as good as a competitor’s.

The Venn diagram of their customer base and Hacker News commenters doesn’t have much overlap.

bachmeier

> Their average customer is probably demanding it and at risk of switching products if the AI integration is not as good as a competitor’s.

There's no substance to this comment. It's pure speculation. If you actually want to look at evidence, look at the recent news that Microsoft has cut AI sales targets in half.

> The Venn diagram of their customer base and Hacker News commenters doesn’t have much overlap.

Ironic that you posted this as a comment on HN.

Aurornis

> Ironic that you posted this as a comment on HN.

It’s not ironic at all. Posting here was deliberate to highlight the bubble that happens here for consumer products. This comment section has a lot of people evaluating these price hikes as if they were targeted at HN individual users, not for a product targeted at a different audiences and corporate subscriptions.

Hacker News commenters are frequently unaware that their use cases and customer preferences do not reflect the average customer demand in the market.

Remember when Dropbox was launched and the top comment was doubting its utility because they could replicate it with rsync and other commands duct taped together? That level of disconnectedness with the market is common in every thread about consumer products.

As for AI demand: If you don’t think AI is in demand, you haven’t been looking at the explosive adoption of AI tools from ChatGPT to Sora (consistently high on app charts) by consumers. These products are in high demand, though you’d never know if it your only perspective was through upvoted HN stories and comments.

jjgreen

Business basic goes from $6 to $7

So a 16% hike when current US inflation is 3-4%?

gruez

>So a 16% hike when current US inflation is 3-4%?

When was the last price hike? Looking at historical inflation and working backwards, you only need to start at around late 2021 to get 16% cumulative inflation. In other words if they didn't raise their prices for 4 years, they'd be at par with inflation.

edit: another commenter mentioned the last price hike was around 4 years ago, so it's indeed in line with inflation: https://news.ycombinator.com/item?id=46192356

tallanvor

How much inflation has there been since the last price increase? From 2022 to 2025 it look likes like about 11%, so not all that different if you're trying to keep a round number.

jfindper

Percentages are fun because they can make something with a small absolute change look like a giant change.

No business is really going to care about $1.00/user, especially when it costs hundreds of dollars per user (or thousands) to migrate entirely away from the Microsoft ecosystem.

Aurornis

Did you notice every price was a whole number?

Or that this was for business accounts that were already cheap? $1/seat isn’t going to cause a mass migration off the platform.

Or that some of the price hikes were 0%?

Fixating on this lowest price increase is deliberately misleading.

You would also have to go back and calculate price increases over time to compare against inflation over time?

dfxm12

In my experience, most people, especially execs who are negotiating the licensing deals, want Copilot. Even if they are underwhelmed after using it, at that point, MS doesn't care. They already have your money.

noosphr

>How did you go bankrupt? Two ways. Gradually, then suddenly.

notepad0x90

I wish I could agree with this, but the ecosystem lock-in is too great. They might lose business for sure but it may not put a dent in their revenue at all.

If you replace office, you'll have to replace sharepoint, onedrive, etc.. and it isn't just the tools but the policies and critical features that go along with those. For most orgs, this is literally their lifeblood, not just some tool they can yank out. For smaller orgs it might be easier, but those don't pay Microsoft as much anyways.

From a user point of view, there are tools that have similar features, some even better features. G-suite is the only platform i know of that unifies all the office productivity products like 365 does. But neither G-suite nor any other platform can be managed/policed as well as 365. At the end of the day, will Google behave any better than Microsoft anyways (cost or otherwise)? And it isn't just policing and management but securing all that precious data in there, Microsoft might not be great but lots of tech-debt has gone into securing it within that platform. A migration would be costly, justifying it with cost savings alone might be difficult.

boh

Most of their enterprise clients get bundled services so it often still retains its competitive edge. Their Power suite, Teams and the existing integrations make it cost effective even with the increases.

emadb

Other than Google, what are other competitors that worth evaluating?

basch

Canva is a go to over Microsoft and Adobe for a huge crowd of people

hoistbypetard

Zoho and Collabora spring immediately to mind.

croes

For which feature?

How people in companies really need the features of Word, Excel and PowerPoint?

I often see people using space to right align a date, the pros use tabs.

Bombthecat

Open source... But yeah.. ms won this game

sneak

There is no foss competitor to Excel.

SideburnsOfDoom

Can I just get the version without CoPilot for cheaper? Or at all?

Likely they'd charge more for it.

jsheard

I think the only way to get the no-Copilot version now is to already have the Copilot version and try to cancel your subscription, and only then they'll offer the "Classic" version sans Copilot as a last ditch retention effort.

If users actually wanted this stuff they wouldn't need to bury the option to not pay for it.

mc32

Google was increasing their pricing too. Also before last year they were charging an extra license for Gemini but then decided to throw it in.

boh

If most companies had to for some reason revert to Windows XP and MS Office from 1998, they would barely be impacted. There is literally no benefit to this subscription model besides paying for what you already have and what you don't want. None of this stuff needs to be on the cloud even for bigger firms. For the I need/like X in Office 365, it's not worth it from a costs perspective.

rz2k

I think a surprising number of companies only survive because Microsoft Office gets around hostile internal IT departments and gives workers capabilities they can’t otherwise get on their locked down workstations.

It was only in 2007 that the row limit in Excel increased from 65k to one million and the column limit increased from 256 to 16k. There are better tools to work with data, but these companies’ IT departments aren’t letting users install them.

Angostura

I'd disagree in terms of the cloud capabilities. When it is used properly. The cloud stuff is very useful. I currently have a document that is going through multiple versions with about 8 people, with different expertise collaborating. Some have edit privs, some only have review. The ability for everyone to work on it simultaneously, with version history and no more document-v12-copy3_FINAL_FINALv2 is most welcome.

bombcar

Multiplayer PowerPoint is the single largest advance in the business world since the spreadsheet.

If used properly.

sneak

They’d get owned by security vulnerabilities in the first hour, fwiw.

boh

Ah yes security, the ultimate shakedown mechanic. Tony Soprano should've been in software sales. "You don't want anything happen to your nice little business do you??"

puttycat

Is there any reason to use Office nowadays except for being able to open documents sent by institutions where secretaries still use Word/Excel/PPT? (universities, etc.)

Aurornis

Excel is the best spreadsheet software in my experience when you have to move beyond the basics. I’ve even tried hard to use the open/Libre alternatives.

Hacker News is a different world than the target customer base for these products. If your use case for spreadsheet software is putting things into tables with some formatting and some light formulas then all of the products will do the same job.

For professionals who use these tools, suggesting they use LibreOffice or something is the equivalent of someone coming to you and suggesting you give up your customized Emacs or Visual Studio Code setup in favor of Notepad++ because they both edit text and highlight code.

rawbot

> Excel is the best spreadsheet software in my experience when you have to move beyond the basics. I’ve even tried hard to use the open/Libre alternatives.

I agree 100% with this, since I've been trying the same. Although I do think some power-users take it way too far and should be using more robust data analysis tools (Python, DBs) instead of having these monstrous Excel spreadsheets with millions of rows and columns.

EvanAnderson

For an individual, probably not. I've been an OpenOffice and LibreOffice use for my personal use and contracting business since 2004. I've had no need for "real" Microsoft Office in that time. I also don't deal in macro-encrusted documents or with more esoteric features.

For an org where individual users aren't technical I'd never try to get by w/o Microsoft Office. The assumption by all large orgs. that you're going to use Microsoft Office is pervasive. Even if the Free Office suites work fine tech support is always going to be mired down in compatibility issues, both real and perceived.

donatj

As a home user and a Mac user, I haven't needed Office in well over 15 years given iWork and Google Docs.

My company pays for office though, and I end up having to use it to play their Sensitivy Rules games for labeling files.

wongarsu

I'd still consider Excel best in class

benterix

While I agree, there is no reason NOT to use a perpetual license (e.g. for Excel 2016), unless you really, really need the subscription-based version.

You may notice the last edition of softwares that had perpetual licenses but moved on to subscription model tend to be very expensive today as they are no longer sold and people know how to count. So, let's use the opportunity while it lasts as I don't believe the end of perpetual licensing for Office (or Windows for that matter) is far away.

lousken

Sharepoint and office is the modern version of cancer. Nobody wants to manage onprem AD and mapped drives because cLoUd is the solution. Doesn't help that Microsoft stopped caring about onprem.

adabyron

Excel has amazing super powers.

PowerPoint is underrated.

For enterprises it almost always comes down to - does it reduce risk, is it easy to manage, authentication & authorization features, is it good enough & is it compatible with our current stuff.

hypeatei

"is there any reason to use Office other than <literally every profession using it>?"

No, I don't think so. I either sail the high seas or subscribe for a month or two when job searching then toss it when I'm done.

bix6

Do you know anyone who does serious financial work in anything besides Excel?

noosphr

Do you know anyone who does serious financial work in Excel?

I know plenty of people who think they do. I know a few that cost the world economy about a trillion dollars: https://inthesetimes.com/article/the-excel-spreadsheet-error...

flakeoil

If they do serious financial work I for sure hope they do not use Excel or any other spread sheet tool. It can go wrong so many ways.

richardlblair

Oh friend, if only you knew.

Not only that, software nerds are rediscovering that they can build so much in Excel. You don't need an app for everything.

Aurornis

If you think spreadsheets aren’t used in serious finance, you’re going to be very disappointed if you ever have to work with that world.

AlanYx

I know a few people who use Quantrix for financial modelling. It is an exceptionally nice piece of software, basically the successor of Lotus Improv, with Improv's more robust and auditable separation of data and formulas.

commandlinefan

I bought Microsoft Word, years ago, before it was "licensed". However, it auto-updated itself with my permission from time to time. A few weeks ago, I went to edit a document and was presented with a pop-up that said I needed to update my license fee in order to be allowed to make modifications to it.

This is doubly frustrating when Word is the standard for resumes.

lewisjoe

At this point Microsoft office suite is practically a monopoly. Governments around the world rely on it. Every big enterprise and every business needs it.

The spec for office documents was authored by Microsoft( and approved by Microsoft!). The spec is basically the docx datastructure published publicly as a standard - which makes building competing office suites even harder.

Given the situation there isn't much customers can do if Microsoft decides to hike the prices anyhow they like.

Note: Indian Government recently adopted Zoho office suite to insulate themselves from Microsoft.

But I don't think many other governments or businesses have the guts to make such move.

mrbluecoat

Switched to the free OnlyOffice a year ago and never looked back: https://www.onlyoffice.com/desktop

https://github.com/ONLYOFFICE

piker

Microsoft raising prices on Office?!

Must be for all those new useful features brought to your desktop over the last decade. Definitely not monopolistic rent-seeking. No siree.

If you or someone you love is a legal user and interested in checking out an in-development word processor built for lawyers, please consider Tritium.

It's free to download: https://tritium.legal/download or check out the web version: https://tritium.legal/preview

LeoWattenberg

I bet the folks of the state Schleswig-Holstein are celebrating right now, having switched away from it recently

https://www.heise.de/en/news/Goodbye-Microsoft-Schleswig-Hol...

gary_0

They can set whatever price they want. Most customers have no choice but to pay; there is no competitor with anything approaching full compatibility or a similar feature set.

Companies like Microsoft and Adobe have maintained a business software monoculture for decades. Nobody has invested significant resources into competing products, just tiny companies and open source volunteers putting out niche alternatives. Microsoft could probably double their prices, and double the built-in advertising, and most customers would complain loudly and keep using them. Docx files, PSDs, PDF forms, etc with any complexity will only ever run properly in one corresponding proprietary application.

hypeatei

> They can set whatever price they want

Then why don't they? I think it's precisely because they don't want anyone "investing significant resources into competing products"

There's a line for everyone and current prices obviously aren't too much for a majority of people, including me. I just don't stay subscribed when I'm not using it.

gary_0

I mean, they kind of are? Obviously they can't set it to a million dollars a month, but where's the ceiling? Five hundred? A thousand? Who knows? And maybe they make it play a 30 second video ad once a day?

They keep getting away with it, and nobody has any idea when the buck will finally stop.

hypeatei

Yes, that's how markets work. It seems like Microsoft understands it well or we'd be seeing mass exodus from Office products. No price increases for three years doesn't seem too bad, IMO.

> And maybe they make it play a 30 second video ad once a day?

Maybe. While we're at it, I'll also add a hypothetical: what if it encrypted all my files and made me pay a ransom?

cfn

The price increases seem reasonable (from 6 to 7, 12 to 14, etc) given inflation. Have they been increasing prices frequently or am I missing something?

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