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Highlights
- Microsoft shares scaled new heights on Monday after it announced a price hike for Office 365 subscriptions for its business clients.
- MSFT shares rose 0.1% to close at a record high of US$304.65, while market capitalisation surged to US$2.29 trillion.
- For the first time, Microsoft has announced a substantive hike in commercial pricing of Office 365 subscriptions since its launch ten years ago.
- As many as 24 apps have been added to the suite in the last decade, while Microsoft introduced 1,400 new features.
Microsoft Corporation (NASDAQ:MSFT) shares touched a fresh all-time high on Monday after the company announced price raise for certain Office 365 productivity software subscriptions for businesses.
MSFT stock gained 0.1% to settle at a new closing high of US$304.65, while market capitalisation surged to US$2.29 trillion. During the fiscal year 2021 ended 30 June, the share price of NASDAQ-listed company rose about 37%.
The American technology giant has hiked the subscription cost for the premium Office 365 E5 by 9% per user a month, while the price of Office 365 E1 raised by 25%. Besides, the cost of Microsoft 365 E3, including Windows and Enterprise Mobility and Security features, will be increased by 13%, said the company, adding that the change will be effective from March 1, 2022.
Image source © Welcomia | Megapixl.com
Also read: Microsoft’s (NASDAQ:MSFT) Q3 Net Profit Up 44% On Cloud Growth
For the first time, Microsoft has announced a substantive hike in commercial pricing of Office 365 subscriptions since its launch ten years ago. The price change was attributed to the upgrades and additional value added to the software suite to render better user experience over the years. The company has put in efforts, technology, and capital to cater to the changing needs of its customers.
Over the decade, 24 apps have been added to the suite—Microsoft Teams, Power Apps, Power BI, Power Automate, Stream, Planner, Visio, OneDrive, Yammer, and Whiteboard. Also, more than 1,400 new features and capabilities have been released in three key areas - communications and collaboration, AI and automation, and security and compliance.
Bottom Line
The move to raise the price shows that Microsoft continues to hold a strong competitive position in the industry. In the financial year 2021, commercial subscriptions to Office 365 contributed about 18% to the company’s total revenue. Thus, the price hike will further amplify revenue and attain profitable growth for the leading tech giant in CY22. Moreover, it has paved the way for growth segments through the current fiscal year 2022.
Also read: Microsoft roped in as Principal Partner for COP26 Glasgow Summit
