Shares of Microsoft Corporation (MSFT) saw its shares surge 2% today when the company announced some business changes that could impact its bottom line, investors seem to be bullish on the stock.
Microsoft announced that it will raise its pricing for flagship business applications like Office 365 by 20%. The price change is expected to go into effect within six months or around February 2022.
The Microsoft 365 suite is the cornerstone of the company’s productivity and business process segment, which had sales of $53.9 billion in its most recent fiscal year, about a third of Microsoft’s overall $168 billion in sales.
The increases will affect commercial customers and are the first since Microsoft rolled out the service a decade ago. Jared Spataro, corporate vice president for Microsoft 365, said the company has added two dozen apps to the suite since it launched.
Microsoft said it is not changing prices for the consumer or education versions of the software.