Microsoft Tests Free Version of Office 365 – But There’s a Catch!
Microsoft is testing a free, ad-supported version of Office 365 for select users in India, featuring persistent banner ads and 15-second muted ads. Users must store files on OneDrive, with local saving and certain features like add-ins and data analysis restricted. Microsoft confirmed this is a limited test with no global rollout planned. This trial comes after a significant price hike for Australian users, increasing personal and family plan costs by up to 45%. The company attributed the rise to AI-powered tools integrated into Office 365. Business and enterprise plans in Australia remain unaffected, with pricing starting at $9 per user per month.
Microsoft Tests Free Version of Office 365 – But There’s a Catch!
Microsoft has been quietly testing a free, ad-supported version of its Office 365 suite, just months after implementing a price increase for Australian users. This trial, which has not been officially announced or documented on Microsoft’s support pages, was first reported by Indian tech site Beebom. It appears to be limited to select users in India.
The free version grants access to popular Microsoft Office applications like Word, Excel, and PowerPoint without requiring a subscription. However, it includes a constant banner ad on the right side of the screen, along with 15-second muted advertisements that appear periodically. Users are also restricted from saving files locally, as documents must be stored on OneDrive, which provides 5GB of free storage. Additionally, several features, such as add-ins, watermarks, and data analysis tools, are unavailable.
This experiment marks a potential shift in Microsoft’s business approach, as its desktop Office applications currently only allow document viewing without an active subscription. Despite the trial, Microsoft has stated that there are no plans to roll out a free, ad-supported version of Office worldwide. A spokesperson told PCMag that the company is conducting “some limited testing” but does not intend to launch this version globally.
The testing comes shortly after Microsoft increased the cost of Office 365 subscriptions in Australia, a move that frustrated many users. Announced in November last year, the price of a personal Microsoft 365 plan rose from $109 to $159 per year, while the family plan increased from $139 to $179 annually—representing a 45% and 30% hike, respectively. The family plan supports up to six users, whereas the personal plan is designed for a single subscriber.
These price adjustments also impacted users in New Zealand, Singapore, Malaysia, Taiwan, and Thailand, taking effect upon their next renewal. Microsoft justified the increase by highlighting the integration of artificial intelligence tools into Office 365, which allow users to generate documents, presentations, and analyze data using natural language commands. Generative AI features have also been introduced in applications like Word and Gmail.
A Microsoft spokesperson emphasized that the company is committed to providing flexible options that cater to a variety of user needs and financial constraints. While personal and family plans saw substantial price increases, business and enterprise subscriptions in Australia remained unaffected. This suggests that Microsoft aims to keep its professional and corporate customers on board by maintaining stable pricing in the competitive business software market.
Currently, Microsoft 365 Business Basic is available for $9 per user per month when billed annually, offering essential cloud-based tools such as web and mobile versions of Office apps, email, and 1TB of OneDrive storage. The Business Standard plan, priced at $18.70 per user per month, includes desktop versions of Office applications, business-class email, and advanced collaboration tools. Meanwhile, the premium Business plan costs $32.90 per user per month and adds advanced security features, device management, and additional AI-powered tools. These plans are tailored to meet the varying needs of small businesses and enterprises.
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