Microsoft 365: How to dodge the price hike for Office subscriptions


With the introduction of AI features in Office programmes, Microsoft is increasing subscription prices. — Photo: Andrej Sokolow/dpa

The AI assistant Copilot is now up and running in Microsoft 365 – and the software giant behind it wants you to pay up for it.

Now that Office package with Word, Excel, Outlook and PowerPoint includes the AI-supported image editing software Microsoft Designer, Microsoft has hiked its subscription prices for the Office package in markets around the world.

However, what many existing customers may miss is that you don't have to pay more if you don't want to, and anyone who doesn't need the AI features can switch to the new "Classic Personal" or "Classic Family" pricing tiers.

How to find the cheaper subscription

However, the option to switch is not too easy to find. To be offered the new AI-free subscriptions, users first have to log in to account.microsoft.com, then go to the subscriptions area and finally click on "cancel subscription".

After selecting one of the new classic subscriptions, the switch will then take place automatically at the next subscription renewal. According to Microsoft, you can only switch for a limited period, but no specific deadline is given.

Existing customers who don't change anything can expect to pay around 30% more, depending on exact pricing in their country. In eurozone countries, you would pay €99 (RM476) instead of €69 (RM332) per year for the personal subscription or €129 (RM621) instead of €99 (RM476) per year for the family subscription.

However, even after the price increase, Copilot cannot be used an unlimited number of times. According to Germany's consumer testing foundation Stiftung Warentest, there is a monthly quota of AI credits that cannot be carried over to the following month.

Those who need more and can't get by with the monthly quota have to sign up for a Copilot Pro subscription (€22 a month in Europe).

New customers who do not want any AI features have no choice but to first book one of the more expensive plans including Copilot and then switch to the Classic plan by making the above-mentioned change.

Other options?

Ultimately, of course, cancelling the subscription (or not taking one out to begin with) still remains an option. After all, there are decent alternatives to Microsoft 365 that are free of charge.

These include the free office suite LibreOffice, which handles word processing, spreadsheets, presentations and more.

Compatibility is not an issue here, and Word text documents and Excel spreadsheets created with Microsoft 365 can be easily opened and saved again in the Microsoft file formats. LibreOffice is available for Windows, MacOS and Linux.

For iOS and Android, Collabora Office, which is based on LibreOffice, is also available.

And how should you replace Outlook? We recommend the free e-mail programme Mozilla Thunderbird as a free alternative, which also offers a calendar and contact management suite. Thunderbird is available for Windows, MacOS, Linux, iOS and Android. – dpa

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