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From: Don Green

2/9/2025 2:42:53 PM

1 Recommendation

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S. maltophilia

of 1918

Yesterday I received this email from Microsoft about a price change coming for the "Office 365" and I decided to investigate it and here is what I discovered

The issue is I wanted to buy a renewal before the price change but was told I couldn't even though the email says the price change 14 Feb. But I discovered a way around this price increase

Thank you for being a valued Microsoft 365 subscriber. To reflect the value we’ve added over the past decade, address rising costs, and enable us to continue delivering new innovations, we’re increasing the price of your subscription.

Effective February 14, 2025, the price for Microsoft 365 Familysubscriptions will increase from USD 99.99* per year to USD 129.99* per year.To continue with the new price, no action is needed—your payment method on file will be automatically charged. To make changes to your subscription plan or turn off recurring billing, visit your Microsoft account at least two days before your next billing date.

By maintaining your subscription, you’ll enjoy secure cloud storage, advanced security for your data and devices, and cutting-edge AI-powered features, along with all your other subscription benefits. Thank you for choosing Microsoft.

Learn more about how to manage your subscription, including how to cancel and switch your subscription.

* Subscription prices listed do not include any discounts, promotions, or special offers that may be available.

You are receiving this email because you have a Microsoft 365 subscription.

The issue is I wanted to buy a renewal before the price change but was told I couldn't even though the email says the price change 14 Feb. But I discovered a way around this price increase

Microsoft offers "Classic" plans for both Personal and Family subscriptions that exclude AI features like Microsoft Copilot and Microsoft Designer. These plans are available at the previous pricing:

Microsoft 365 Personal Classic: $99.99/year
Microsoft 365 Family Classic: $129.99/year

These Classic plans include the same features as the standard Personal and Family plans, minus the AI functionalities. To switch to a Classic plan, existing subscribers with recurring billing enabled can manage their subscriptions through their Microsoft account.
support.microsoft.com

Alternatively, Microsoft offers Office 2024 as a one-time purchase, which includes classic desktop versions of Word, Excel, PowerPoint, Outlook, and OneNote. This option does not include AI features or cloud services and is priced at $249.99.
microsoft.com

If you're looking for a plan around $99 without AI features, the Microsoft 365 Personal Classic plan would be the appropriate choice.

Microsoft has recently updated its Microsoft 365 Personal and Family plans to include AI-powered features like Microsoft Copilot and Microsoft Designer, resulting in a price increase. To accommodate users who prefer the traditional experience without these AI enhancements, Microsoft offers "Classic" versions of these plans. Here's a detailed comparison between the Standard and Classic plans:

Standard Plans (with AI Features)

Microsoft 365 Personal: $99.99/year or $9.99/month
Microsoft 365 Family: $129.99/year or $12.99/month

Features:

Access to premium Office applications: Word, Excel, PowerPoint, Outlook, OneNote
1 TB of OneDrive cloud storage per user
Microsoft Defender for advanced security
Microsoft Copilot: AI assistance within Office apps
Microsoft Designer: AI-powered design tool
Clipchamp video editor with premium features
Ad-free secure email
For Family plan: Share with up to 5 additional people (6 total users)

Classic Plans (without AI Features)

Microsoft 365 Personal Classic: $69.99/year or $6.99/month
Microsoft 365 Family Classic: $99.99/year or $9.99/month

Features:

Access to premium Office applications: Word, Excel, PowerPoint, Outlook, OneNote
1 TB of OneDrive cloud storage per user
Microsoft Defender for advanced security
Clipchamp video editor with premium features
Ad-free secure email
For Family Classic plan: Share with up to 5 additional people (6 total users)

Key Differences:

AI Features: The Standard plans include AI-powered tools like Microsoft Copilot and Microsoft Designer, which are absent in the Classic plans.
Price: Classic plans are more affordable, reflecting the absence of AI features.

How to Switch to a Classic Plan:

If you're an existing subscriber and wish to switch to a Classic plan:

Sign in to your Microsoft account and navigate to the Subscriptions section.
Locate your current subscription and select Manage > Cancel subscription.
Choose either Microsoft 365 Personal Classic or Microsoft 365 Family Classic as your new plan.
Follow the on-screen instructions to complete the switch.

For detailed guidance, refer to Microsoft's official support page:
support.microsoft.com

Considerations:

Feature Updates: Classic plans will not receive major new features, especially those related to AI.
Availability: The Classic plans are available for a limited time and may not always be offered as a plan option.

By choosing a Classic plan, you can maintain access to essential Microsoft 365 services at a lower cost, without the integration of AI features.

Sources

Microsoft doesn't openly advertise the Classic plans, and most users won't even know they exist unless they actively search for them. Here are a few key reasons why Microsoft downplays the Classic plans:

Why Microsoft Hides the Classic Plans

Push Towards AI & Subscription Revenue
- Microsoft is heavily investing in AI-powered features like Copilot and wants users to adopt AI tools instead of sticking with traditional Office apps.
- AI plans cost more ($99.99 vs. $69.99 for Personal), increasing their recurring revenue per user.
Default Plan for New Users = AI Version
- If you go to Microsoft's official website, they only show the AI versions by default.
- Classic plans are buried deep in the subscription settings and require users to manually switch to them.
Lack of Promotion = Fewer People Downgrading
- Many users might prefer a cheaper Classic plan if they knew about it.
- By hiding Classic plans, Microsoft ensures more users pay for AI features they might not even use.
The Classic Plan Might Be Temporary
- Microsoft hasn’t committed to keeping the Classic plans long-term.
- They could be discontinued in the future, forcing users to upgrade.

How to Find & Switch to a Classic Plan

Sign into your Microsoft Account
- Go to Microsoft 365 Subscription Management.
Check your current plan
- Look for the option to Manage your subscription.
Click “Change Plan”
- If available, you’ll see the Classic Plan as a hidden option.
Confirm downgrade to Classic
- Your next renewal will be at the lower Classic plan price without AI features.

What This Means for You

If you don’t need AI features, the Classic plans save you $30/year (Personal) or $30/year (Family).
Microsoft wants users to stay on AI-powered subscriptions, so they don’t make it easy to find cheaper alternatives.
If you're happy with traditional Office apps, switching to Classic is the best way to save money.

Would you like a step-by-step guide with screenshots on how to downgrade to a Classic plan? ??

If you prefer to use Microsoft 365 without AI features like Copilot and Designer, you can switch to the Microsoft 365 Classic Plan. Here's a step-by-step guide to help you make the transition:

1. Access Your Microsoft Account:

Open your web browser and navigate to the Microsoft Services & Subscriptions page.
Sign in using the Microsoft account associated with your current subscription.

2. Locate Your Current Subscription:

On the Services & Subscriptions page, find your active Microsoft 365 subscription (e.g., Microsoft 365 Family or Personal).
Click on the Manage button next to your subscription.

3. Initiate the Cancellation Process:

In the subscription management page, select Cancel subscription.
Microsoft will present options to retain your subscription by switching to a different plan.

4. Choose the Classic Plan:

Among the options provided, look for the Microsoft 365 Family Classic or Microsoft 365 Personal Classic plan.
Select the Classic plan to proceed.

5. Confirm the Switch:

Follow the on-screen prompts to confirm your selection.
Ensure that recurring billing is enabled to facilitate the plan change.

6. Finalize the Process:

After confirmation, your subscription will be set to transition to the Classic plan at the end of your current billing cycle.
You will retain access to your existing Microsoft 365 services without the AI features.

Important Notes:

Plan Availability: The Classic plan is available for a limited time and may not be prominently displayed. Initiating the cancellation process is often necessary to access this option.
Pricing: The Classic plan is typically more affordable than the standard AI-included plans, making it a cost-effective choice for users who do not require AI features.
Subscription Management: For detailed guidance, refer to Microsoft's official support page on switching between Microsoft 365 subscriptions.

By following these steps, you can continue to enjoy Microsoft 365's core features without the additional AI functionalities, aligning the service with your preferences and budget.

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