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Microsoft Launching Three New Microsoft 365 Versions for SMBs

Microsoft has announced it will be launching three new versions of Microsoft 365.  The new Microsoft 365 plans are tailored for small- and medium-sized business (SMB) companies.

The new Microsoft 365 SMB portfolio is aimed at businesses with between one and 250 employees.

The new packages launching will include the following packages:

  • Microsoft 365 Business: Full Office applications, including Outlook, Word, Excel, PowerPoint, OneNote and Publisher—and 1TB of OneDrive for Business cloud storage.
  •  Microsoft 365 Business Essentials: Core cloud services for businesses—business-class email and calendaring, Office Online, online meetings, IM, videoconferencing, cloud storage and file-sharing.
  • Microsoft 365 Business Premium: Includes both the Microsoft 365 Business and Business Essentials plans.


Microsoft intends to phase out its current Microsoft 365 offerings including Small Business, Small Business Premium and Midsize Business.  There will be no changes to the current Enterprise class plans.

The new Microsoft 365 Business plan will be priced at $8.25 per month per user while the Business Essentials module, which now supports Yammer and Active Directory, is listed at $5 per month per user and the seat limit has been bumped up to 300. The Business Premium version will be priced at $12.50 per user per month.

Microsoft isn’t pressing existing customers to upgrade to the new plans immediately when they’re available. Instead, the vendor has elected to offer some of the features and pricing of the new plans to existing Microsoft 365 SMB customers beginning Oct. 1 by upping the seat cap limits for existing Small Business and Small Business Premium customers to 300 from 25 and lowering pricing for Midsize Business customers to $12.50 per user per month. Existing customers will get the new prices the next time they renew, starting Aug. 1.


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