Great news for everyone, the price of the cloud is dropping! Microsoft has cut the prices for the Enterprise Suite of Office 365. The E1 plan was $10 per user per month is now $8; the E3 plan was $24 and now is $20! Microsoft attributed this price reduction to the cost efficiencies of having more customers on Office 365 resulting in lower costs to run the system and thus they are passing the savings onto the consumers! The reduced prices take effect immediately for new and renewing customers. This is great news and it shows that Cloud computing works and that adding capacity and customers results in cost drops while increasing services offered, as Microsoft has been continuing to improve and add new features to the Office 365 stack.

I just checked on my tenant I have on Office 365 and see that I can add the E2 or E4 license at the reduced prices but if I add another E1 or E3 (have one of each right now) they are at the original price. Also it shows that my current subscriptions of E1 and E3 are still at the original price. So I am not sure if this will change or I am locked into the old prices until my next renewal? I will monitor this and report back if the costs of my existing plans drop to the new rates.

You can read more about the announcement here, They also talk about the A2 plan being free for students and teachers and faculty in the Education space!