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2021-08-23

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What Microsoft's Office Price Increase Means for Investors<blockquote>微软写字楼价格上涨对投资者意味着什么</blockquote>

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{"i18n":{"language":"zh_CN"},"detailType":1,"isChannel":false,"data":{"magic":2,"id":835867049,"tweetId":"835867049","gmtCreate":1629704753881,"gmtModify":1633683062472,"author":{"id":3576100208689627,"idStr":"3576100208689627","authorId":3576100208689627,"authorIdStr":"3576100208689627","name":"SunbearInv","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":12,"crmLevelSwitch":0,"individualDisplayBadges":[],"fanSize":3,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"extraTitle":"","html":"<html><head></head><body>Like please</body></html>","htmlText":"<html><head></head><body>Like please</body></html>","text":"Like please","highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://laohu8.com/post/835867049","repostId":1113577058,"repostType":4,"repost":{"id":"1113577058","kind":"news","pubTimestamp":1629704492,"share":"https://www.laohu8.com/m/news/1113577058?lang=zh_CN&edition=full","pubTime":"2021-08-23 15:41","market":"us","language":"en","title":"What Microsoft's Office Price Increase Means for Investors<blockquote>微软写字楼价格上涨对投资者意味着什么</blockquote>","url":"https://stock-news.laohu8.com/highlight/detail?id=1113577058","media":"The Motley Fool","summary":"Microsoft is raising prices for business and enterprise customers.The price increase should add revenue without causing customer churn.The biggest benefit could be to Microsoft's bottom line.$Microsoft$ announced the first price increase for its Microsoft 365 and Office 365 subscriptions since the subscription offering was first introduced more than a decade ago. In its announcement, Microsoft pointed out all the additional value it's added to the software suite over the last 10 years, justifyi","content":"Key Points<blockquote>要点</blockquote> <ul> <li>Microsoft is raising prices for business and enterprise customers.</li> <li>The price increase should add revenue without causing customer churn.</li> <li>The biggest benefit could be to Microsoft's bottom line.</li> </ul> <blockquote><ul><li>微软正在提高商业和企业客户的价格。</li><li>价格上涨应该会增加收入，而不会导致客户流失。</li><li>最大的好处可能是微软的利润。</li></ul></blockquote> <a href=\"https://laohu8.com/S/MSFT\">Microsoft</a> (NASDAQ:&nbsp;MSFT)&nbsp;announced the first price increase for its Microsoft 365 and Office 365 subscriptions since the subscription offering was first introduced more than a decade ago. In its announcement, Microsoft pointed out all the additional value it's added to the software suite over the last 10 years, justifying its price increase. Indeed, new services such as Microsoft Teams have become invaluable for many workplaces in the work-from-home era.<blockquote><a href=\"https://laohu8.com/S/MSFT\">微软</a>（纳斯达克：MSFT）宣布自十多年前首次推出订阅服务以来，其微软365和Office 365订阅的首次提价。在其公告中，微软指出了过去10年来它为软件套件增加的所有额外价值，证明了其价格上涨的合理性。事实上，在在家工作的时代，微软团队等新服务对于许多工作场所来说已经变得非常宝贵。</blockquote> Microsoft's decision to raise its pricing should show up on both the top and bottom lines. Here's what investors can expect.<blockquote>微软提高定价的决定应该会体现在营收和利润上。以下是投资者可以期待的。</blockquote> What exactly is changing?<blockquote>到底是什么在改变？</blockquote> Microsoft is specifically changing the commercial pricing for Microsoft 365 and Office 365. Consumer pricing isn't changing at all, so if you subscribe to the service personally, you won't see any change in your monthly or annual bill from Microsoft. The new commercial pricing won't go into effect until March 1, 2022.<blockquote>微软正在专门改变微软365和Office 365的商业定价。消费者定价根本没有变化，因此如果您亲自订阅该服务，您不会看到微软的月度或年度账单有任何变化。新的商业定价要到2022年3月1日才会生效。</blockquote> <table> <thead> <tr> <th>Service Tier<blockquote><table><thead><tr><th>服务层</th></tr></thead></table></blockquote></th> <th>Current Monthly Price Per User<blockquote><th>当前每个用户的月价格</th></blockquote></th> <th>Monthly Price Per User 3/1/2022<blockquote><th>每个用户的每月价格3/1/2022</th></blockquote></th> <th>Percent Increase<blockquote><th>百分比增加</th></blockquote></th> </tr> </thead> <tbody> <tr> <td>Microsoft 365 Business Basic<blockquote><tbody><tr><td>微软365商业基础</td></tr></tbody></blockquote></td> <td>$5<blockquote><td>$5</td></blockquote></td> <td>$6<blockquote><td>$6</td></blockquote></td> <td>20%<blockquote><td>20%</td></blockquote></td> </tr> <tr> <td>Microsoft 365 Business Premium<blockquote><tr><td>微软365商务高级版</td></tr></blockquote></td> <td>$20<blockquote><td>$20</td></blockquote></td> <td>$22<blockquote><td>$22</td></blockquote></td> <td>10%<blockquote><td>10%</td></blockquote></td> </tr> <tr> <td>Office 365 E1<blockquote><tr><td>Office 365 E1</td></tr></blockquote></td> <td>$8<blockquote><td>$8</td></blockquote></td> <td>$10<blockquote><td>$10</td></blockquote></td> <td>25%<blockquote><td>25%</td></blockquote></td> </tr> <tr> <td>Office 365 E3<blockquote><tr><td>Office 365 E3</td></tr></blockquote></td> <td>$20<blockquote><td>$20</td></blockquote></td> <td>$23<blockquote><td>$23</td></blockquote></td> <td>15%<blockquote><td>15%</td></blockquote></td> </tr> <tr> <td>Office 365 E5<blockquote><tr><td>Office 365 E5</td></tr></blockquote></td> <td>$35<blockquote><td>$35</td></blockquote></td> <td>$38<blockquote><td>$38</td></blockquote></td> <td>8.6%<blockquote><td>8.6%</td></blockquote></td> </tr> <tr> <td>Microsoft 365 E3<blockquote><tr><td>微软365 E3</td></tr></blockquote></td> <td>$32<blockquote><td>$32</td></blockquote></td> <td>$36<blockquote><td>$36</td></blockquote></td> <td>12.5%<blockquote><td>12.5%</td></blockquote></td> </tr> </tbody> </table> DATA SOURCE: MICROSOFT.<blockquote>数据来源：微软。</blockquote> The price increases will affect the 300 million commercial Office 365 and Microsoft 365 paid seats. But they won't all see the price increase at once. Microsoft locks in long-term contracts with businesses, so the full impact probably won't show up until well into fiscal 2023.<blockquote>价格上涨将影响3亿个商业Office 365和微软365付费座位。但他们不会一下子都看到价格上涨。微软与企业签订了长期合同，因此全面影响可能要到2023财年才会显现出来。</blockquote> What kind of impact can investors expect?<blockquote>投资者可以期待什么样的影响？</blockquote> When the price increase is fully rolled out, the 300 million existing subscribers will be paying at least $1 more per month, but $2 or $3 in most cases. Also consider that the price increases for the lower tiers of service are more substantial (on a percentage basis) than the higher tiers. That could push more businesses to opt for higher-tier services, producing further revenue growth.<blockquote>当价格上涨全面铺开时，3亿现有用户每月将至少多付1美元，但在大多数情况下是2或3美元。还要考虑到较低级别服务的价格上涨比较高级别服务的价格上涨幅度更大（按百分比计算）。这可能会促使更多企业选择更高级别的服务，从而进一步实现收入增长。</blockquote> Subscriber churn shouldn't be a huge concern for Microsoft. Not only is this its only price increase in the history of the service, but it also has a moat around its software suite. No business wants to spend hours retraining its workforce on a competing product, and it's standard across industries to use Microsoft's Office suite. So the potential to lose revenue from churn is minimal.<blockquote>对于微软来说，用户流失不应该是一个大问题。这不仅是该服务历史上唯一一次涨价，而且它的软件套件周围也有一条护城河。没有企业愿意花几个小时对员工进行竞争产品的再培训，使用微软的办公套件是各行各业的标准。因此，因客户流失而损失收入的可能性很小。</blockquote> An average increase of $2 per user would translate into $7.2 billion in additional revenue. That's on top of any organic subscriber growth the company can produce. For reference, Office 365 Commercial's revenue increased 25% year over year in the fourth quarter. And during the company's&nbsp;fourth quarter earnings call, CEO Satya Nadella said it's seeing double-digit year-over-year seat growth across every segment.<blockquote>每个用户平均增加2美元将转化为72亿美元的额外收入。这还不包括该公司可以产生的任何有机用户增长。作为参考，Office 365 Commercial第四季度收入同比增长25%。在该公司第四季度财报看涨期权上，首席执行官萨提亚·纳德拉(Satya Nadella)表示，该公司各个细分市场的席位均实现了两位数的同比增长。</blockquote> Wedbush analyst Daniel Ives expects the price increase to produce $5 billion in additional revenue in fiscal 2022.<blockquote>Wedbush分析师Daniel Ives预计，此次提价将在2022财年带来50亿美元的额外收入。</blockquote> Importantly, the increased revenue should provide a substantial boost to profits. Microsoft isn't planning to add anything more to the suite than it already has. The operating costs won't increase any more substantially compared with the old pricing. As such, the bulk of that revenue increase will flow to Microsoft's bottom line.<blockquote>重要的是，收入的增加应该会大幅提高利润。微软不打算在套件中添加比现有更多的东西。与旧定价相比，运营成本不会大幅增加。因此，大部分收入增长将流入微软的利润。</blockquote> Microsoft produced an operating income of nearly $70 billion in fiscal 2021. Adding $4 billion or $5 billion in additional operating income with just a price increase is a 6% or 7% increase in operating income. And don't forget the service is continuing to grow subscriptions. As such, the price increase should compound earnings growth for the&nbsp;tech stock&nbsp;for years to come.<blockquote>微软2021财年营业收入近700亿美元。仅仅涨价就增加40亿或50亿美元的额外营业收入，营业收入就增加了6%或7%。别忘了这项服务的订阅量正在持续增长。因此，价格上涨应该会在未来几年复合科技股的盈利增长。</blockquote>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What Microsoft's Office Price Increase Means for Investors<blockquote>微软写字楼价格上涨对投资者意味着什么</blockquote></title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 12.5px; color: #7E829C; margin: 0;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat Microsoft's Office Price Increase Means for Investors<blockquote>微软写字楼价格上涨对投资者意味着什么</blockquote>\n</h2>\n<h4 class=\"meta\">\n\nThe Motley Fool2021-08-23 15:41\n\n</h4>\n</header>\n<article>\nKey Points<blockquote>要点</blockquote> <ul> <li>Microsoft is raising prices for business and enterprise customers.</li> <li>The price increase should add revenue without causing customer churn.</li> <li>The biggest benefit could be to Microsoft's bottom line.</li> </ul> <blockquote><ul><li>微软正在提高商业和企业客户的价格。</li><li>价格上涨应该会增加收入，而不会导致客户流失。</li><li>最大的好处可能是微软的利润。</li></ul></blockquote> <a href=\"https://laohu8.com/S/MSFT\">Microsoft</a> (NASDAQ:&nbsp;MSFT)&nbsp;announced the first price increase for its Microsoft 365 and Office 365 subscriptions since the subscription offering was first introduced more than a decade ago. In its announcement, Microsoft pointed out all the additional value it's added to the software suite over the last 10 years, justifying its price increase. Indeed, new services such as Microsoft Teams have become invaluable for many workplaces in the work-from-home era.<blockquote><a href=\"https://laohu8.com/S/MSFT\">微软</a>（纳斯达克：MSFT）宣布自十多年前首次推出订阅服务以来，其微软365和Office 365订阅的首次提价。在其公告中，微软指出了过去10年来它为软件套件增加的所有额外价值，证明了其价格上涨的合理性。事实上，在在家工作的时代，微软团队等新服务对于许多工作场所来说已经变得非常宝贵。</blockquote> Microsoft's decision to raise its pricing should show up on both the top and bottom lines. Here's what investors can expect.<blockquote>微软提高定价的决定应该会体现在营收和利润上。以下是投资者可以期待的。</blockquote> What exactly is changing?<blockquote>到底是什么在改变？</blockquote> Microsoft is specifically changing the commercial pricing for Microsoft 365 and Office 365. Consumer pricing isn't changing at all, so if you subscribe to the service personally, you won't see any change in your monthly or annual bill from Microsoft. The new commercial pricing won't go into effect until March 1, 2022.<blockquote>微软正在专门改变微软365和Office 365的商业定价。消费者定价根本没有变化，因此如果您亲自订阅该服务，您不会看到微软的月度或年度账单有任何变化。新的商业定价要到2022年3月1日才会生效。</blockquote> <table> <thead> <tr> <th>Service Tier<blockquote><table><thead><tr><th>服务层</th></tr></thead></table></blockquote></th> <th>Current Monthly Price Per User<blockquote><th>当前每个用户的月价格</th></blockquote></th> <th>Monthly Price Per User 3/1/2022<blockquote><th>每个用户的每月价格3/1/2022</th></blockquote></th> <th>Percent Increase<blockquote><th>百分比增加</th></blockquote></th> </tr> </thead> <tbody> <tr> <td>Microsoft 365 Business Basic<blockquote><tbody><tr><td>微软365商业基础</td></tr></tbody></blockquote></td> <td>$5<blockquote><td>$5</td></blockquote></td> <td>$6<blockquote><td>$6</td></blockquote></td> <td>20%<blockquote><td>20%</td></blockquote></td> </tr> <tr> <td>Microsoft 365 Business Premium<blockquote><tr><td>微软365商务高级版</td></tr></blockquote></td> <td>$20<blockquote><td>$20</td></blockquote></td> <td>$22<blockquote><td>$22</td></blockquote></td> <td>10%<blockquote><td>10%</td></blockquote></td> </tr> <tr> <td>Office 365 E1<blockquote><tr><td>Office 365 E1</td></tr></blockquote></td> <td>$8<blockquote><td>$8</td></blockquote></td> <td>$10<blockquote><td>$10</td></blockquote></td> <td>25%<blockquote><td>25%</td></blockquote></td> </tr> <tr> <td>Office 365 E3<blockquote><tr><td>Office 365 E3</td></tr></blockquote></td> <td>$20<blockquote><td>$20</td></blockquote></td> <td>$23<blockquote><td>$23</td></blockquote></td> <td>15%<blockquote><td>15%</td></blockquote></td> </tr> <tr> <td>Office 365 E5<blockquote><tr><td>Office 365 E5</td></tr></blockquote></td> <td>$35<blockquote><td>$35</td></blockquote></td> <td>$38<blockquote><td>$38</td></blockquote></td> <td>8.6%<blockquote><td>8.6%</td></blockquote></td> </tr> <tr> <td>Microsoft 365 E3<blockquote><tr><td>微软365 E3</td></tr></blockquote></td> <td>$32<blockquote><td>$32</td></blockquote></td> <td>$36<blockquote><td>$36</td></blockquote></td> <td>12.5%<blockquote><td>12.5%</td></blockquote></td> </tr> </tbody> </table> DATA SOURCE: MICROSOFT.<blockquote>数据来源：微软。</blockquote> The price increases will affect the 300 million commercial Office 365 and Microsoft 365 paid seats. But they won't all see the price increase at once. Microsoft locks in long-term contracts with businesses, so the full impact probably won't show up until well into fiscal 2023.<blockquote>价格上涨将影响3亿个商业Office 365和微软365付费座位。但他们不会一下子都看到价格上涨。微软与企业签订了长期合同，因此全面影响可能要到2023财年才会显现出来。</blockquote> What kind of impact can investors expect?<blockquote>投资者可以期待什么样的影响？</blockquote> When the price increase is fully rolled out, the 300 million existing subscribers will be paying at least $1 more per month, but $2 or $3 in most cases. Also consider that the price increases for the lower tiers of service are more substantial (on a percentage basis) than the higher tiers. That could push more businesses to opt for higher-tier services, producing further revenue growth.<blockquote>当价格上涨全面铺开时，3亿现有用户每月将至少多付1美元，但在大多数情况下是2或3美元。还要考虑到较低级别服务的价格上涨比较高级别服务的价格上涨幅度更大（按百分比计算）。这可能会促使更多企业选择更高级别的服务，从而进一步实现收入增长。</blockquote> Subscriber churn shouldn't be a huge concern for Microsoft. Not only is this its only price increase in the history of the service, but it also has a moat around its software suite. No business wants to spend hours retraining its workforce on a competing product, and it's standard across industries to use Microsoft's Office suite. So the potential to lose revenue from churn is minimal.<blockquote>对于微软来说，用户流失不应该是一个大问题。这不仅是该服务历史上唯一一次涨价，而且它的软件套件周围也有一条护城河。没有企业愿意花几个小时对员工进行竞争产品的再培训，使用微软的办公套件是各行各业的标准。因此，因客户流失而损失收入的可能性很小。</blockquote> An average increase of $2 per user would translate into $7.2 billion in additional revenue. That's on top of any organic subscriber growth the company can produce. For reference, Office 365 Commercial's revenue increased 25% year over year in the fourth quarter. And during the company's&nbsp;fourth quarter earnings call, CEO Satya Nadella said it's seeing double-digit year-over-year seat growth across every segment.<blockquote>每个用户平均增加2美元将转化为72亿美元的额外收入。这还不包括该公司可以产生的任何有机用户增长。作为参考，Office 365 Commercial第四季度收入同比增长25%。在该公司第四季度财报看涨期权上，首席执行官萨提亚·纳德拉(Satya Nadella)表示，该公司各个细分市场的席位均实现了两位数的同比增长。</blockquote> Wedbush analyst Daniel Ives expects the price increase to produce $5 billion in additional revenue in fiscal 2022.<blockquote>Wedbush分析师Daniel Ives预计，此次提价将在2022财年带来50亿美元的额外收入。</blockquote> Importantly, the increased revenue should provide a substantial boost to profits. Microsoft isn't planning to add anything more to the suite than it already has. The operating costs won't increase any more substantially compared with the old pricing. As such, the bulk of that revenue increase will flow to Microsoft's bottom line.<blockquote>重要的是，收入的增加应该会大幅提高利润。微软不打算在套件中添加比现有更多的东西。与旧定价相比，运营成本不会大幅增加。因此，大部分收入增长将流入微软的利润。</blockquote> Microsoft produced an operating income of nearly $70 billion in fiscal 2021. Adding $4 billion or $5 billion in additional operating income with just a price increase is a 6% or 7% increase in operating income. And don't forget the service is continuing to grow subscriptions. As such, the price increase should compound earnings growth for the&nbsp;tech stock&nbsp;for years to come.<blockquote>微软2021财年营业收入近700亿美元。仅仅涨价就增加40亿或50亿美元的额外营业收入，营业收入就增加了6%或7%。别忘了这项服务的订阅量正在持续增长。因此，价格上涨应该会在未来几年复合科技股的盈利增长。</blockquote>\n<div class=\"bt-text\">\n\n\n 来源：<a href=\"https://www.fool.com/investing/2021/08/22/what-microsofts-office-price-increase-means-for-in/\">The Motley Fool</a>\n为提升您的阅读体验，我们对本页面进行了排版优化\n\n\n</div>\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"MSFT":"微软"},"source_url":"https://www.fool.com/investing/2021/08/22/what-microsofts-office-price-increase-means-for-in/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1113577058","content_text":"Key Points\n\nMicrosoft is raising prices for business and enterprise customers.\nThe price increase should add revenue without causing customer churn.\nThe biggest benefit could be to Microsoft's bottom line.\n\n\nMicrosoft (NASDAQ: MSFT) announced the first price increase for its Microsoft 365 and Office 365 subscriptions since the subscription offering was first introduced more than a decade ago. In its announcement, Microsoft pointed out all the additional value it's added to the software suite over the last 10 years, justifying its price increase. Indeed, new services such as Microsoft Teams have become invaluable for many workplaces in the work-from-home era.\nMicrosoft's decision to raise its pricing should show up on both the top and bottom lines. Here's what investors can expect.\nWhat exactly is changing?\nMicrosoft is specifically changing the commercial pricing for Microsoft 365 and Office 365. Consumer pricing isn't changing at all, so if you subscribe to the service personally, you won't see any change in your monthly or annual bill from Microsoft. The new commercial pricing won't go into effect until March 1, 2022.\n\n\n\nService Tier\nCurrent Monthly Price Per User\nMonthly Price Per User 3/1/2022\nPercent Increase\n\n\n\n\nMicrosoft 365 Business Basic\n$5\n$6\n20%\n\n\nMicrosoft 365 Business Premium\n$20\n$22\n10%\n\n\nOffice 365 E1\n$8\n$10\n25%\n\n\nOffice 365 E3\n$20\n$23\n15%\n\n\nOffice 365 E5\n$35\n$38\n8.6%\n\n\nMicrosoft 365 E3\n$32\n$36\n12.5%\n\n\n\nDATA SOURCE: MICROSOFT.\nThe price increases will affect the 300 million commercial Office 365 and Microsoft 365 paid seats. But they won't all see the price increase at once. Microsoft locks in long-term contracts with businesses, so the full impact probably won't show up until well into fiscal 2023.\nWhat kind of impact can investors expect?\nWhen the price increase is fully rolled out, the 300 million existing subscribers will be paying at least $1 more per month, but $2 or $3 in most cases. Also consider that the price increases for the lower tiers of service are more substantial (on a percentage basis) than the higher tiers. That could push more businesses to opt for higher-tier services, producing further revenue growth.\nSubscriber churn shouldn't be a huge concern for Microsoft. Not only is this its only price increase in the history of the service, but it also has a moat around its software suite. No business wants to spend hours retraining its workforce on a competing product, and it's standard across industries to use Microsoft's Office suite. So the potential to lose revenue from churn is minimal.\nAn average increase of $2 per user would translate into $7.2 billion in additional revenue. That's on top of any organic subscriber growth the company can produce. For reference, Office 365 Commercial's revenue increased 25% year over year in the fourth quarter. And during the company's fourth quarter earnings call, CEO Satya Nadella said it's seeing double-digit year-over-year seat growth across every segment.\nWedbush analyst Daniel Ives expects the price increase to produce $5 billion in additional revenue in fiscal 2022.\nImportantly, the increased revenue should provide a substantial boost to profits. Microsoft isn't planning to add anything more to the suite than it already has. The operating costs won't increase any more substantially compared with the old pricing. As such, the bulk of that revenue increase will flow to Microsoft's bottom line.\nMicrosoft produced an operating income of nearly $70 billion in fiscal 2021. Adding $4 billion or $5 billion in additional operating income with just a price increase is a 6% or 7% increase in operating income. And don't forget the service is continuing to grow subscriptions. As such, the price increase should compound earnings growth for the tech stock for years to come.","news_type":1,"symbols_score_info":{"MSFT":0.9}},"isVote":1,"tweetType":1,"viewCount":1616,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":10,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/835867049"}