News, Trends, and Insights for IT & Managed Services Providers
News, Trends, and Insights for IT & Managed Services Providers
Business of Tech | Microsoft’s Big Moves: Higher Prices

Microsoft has a ton of news I’ve noticed.

Microsoft announced that it will force install the new Outlook email client on Windows 10 devices starting February 11, 2025, coinciding with the next security update. This change will affect users of Microsoft 365 apps, who can expect the new Outlook to be installed alongside the classic version. Microsoft emphasizes that the new app will not alter existing configurations or defaults, and while there is no option to block the installation, users can remove it afterward. To uninstall the new Outlook, users can execute a specific command in Windows PowerShell. This initiative follows the introduction of the first preview version in May 2022, with general availability for personal accounts starting in September 2023.

Microsoft is testing significant price increases for its M365 subscription service in six Asian nations, including Australia, New Zealand, and Singapore. Users have been notified via email that the cost of an annual Microsoft 365 Family subscription will rise from one hundred thirty-nine Australian dollars to one hundred seventy-nine, marking an increase of nearly twenty-nine percent. Similarly, the M365 Personal subscription will jump from one hundred nine Australian dollars to one hundred fifty-nine, representing an increase of almost forty-six percent. A Microsoft spokesperson stated that these price adjustments, such as advanced security features and creative tools, reflect the added benefits over the past twelve years. The company has not confirmed whether these price hikes will be implemented in other regions or affect corporate licenses. Customer reactions have been largely negative, with many accusing Microsoft of price gouging, especially in Australia, where the cost of living is already high.

Microsoft announced a rollback of its Bing Image Creator model following widespread user complaints about the quality of generated images. The new model, based on OpenAI’s DALL-E 3, promised faster and higher-quality image creation but failed to meet expectations, leading to dissatisfaction on platforms like Reddit. Users noted that the new version produced less realistic images and lacked detail, with some describing it as “weirdly cartoonish” and “lifeless.” In response to the backlash, Microsoft plans to revert to the previous model, DALL-E 3, to address these issues. The transition process is expected to take two to three weeks to complete.

Microsoft is pushing for wider adoption of passkeys, revealing a ten percent decrease in password usage and a staggering nine hundred eighty-seven percent increase in passkey usage due to changes in its user experience. The company has not disclosed the total number of passkey users but anticipates that hundreds of millions will adopt passkeys in the coming months. The Fast Identity Online Alliance recently reported that more than fifteen billion online accounts can use passkeys, with Google claiming eight hundred million of its accounts are now utilizing this technology, up from four hundred million earlier this year. Despite these advancements, Microsoft acknowledges potential challenges, including device security and user accessibility, as it aims for a future with fewer passwords.

Why do we care?

Microsoft’s approach—leaving users no option to block installation—could cause pushback from both consumers and businesses. IT service providers managing fleets of devices may face frustrated clients needing help to remove or disable the app. This adds administrative overhead for MSPs.  This could also lead to a swell of Shadow IT risks.

This might get worse if those pricing increases spread.   This price increase could push cost-conscious users and small businesses toward competing platforms like Google Workspace, especially in regions with high costs of living. IT providers should be ready to offer migration services or position themselves as advisors on cost-effective solutions.

From forced app installations to price hikes, Microsoft is doubling down on its ecosystem dominance, often at the expense of user choice. IT providers should prepare for client pushback and focus on mitigating friction.  

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