In Microsoft’s defense, this is the first substantive pricing update since the launch of Office 365 more than a decade ago. And it has added new value through new apps and functionality. On this basis, it is fair. Customers that have skillfully optimized their licensing for Microsoft purchases and renewals over the past 10 years have been the beneficiary of increasingly capable technology.
However, concerns arise any time a SaaS vendor announces a material price increase – mainly because customers feel they’re at the vendor’s mercy. The subscription nature of SaaS means you can no longer simply stop payment and remain on the version of software you currently have (like Microsoft’s legacy license with software assurance use rights). Furthermore, a price increase announcement a month after announcing nearly $70 billion annual operating income probably is not the greatest timing…