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Previously, any device on the K-plan was forced to use POP3, which is hardly ideal. With this update, users can bring their ActiveSync-compatible devices — including the Apple iPhone, Microsoft Windows Phone, Google Android or Nokia Symbian platforms — into their Exchange Online domain. As a nice bonus, the update will also double cloud storage of e-mail from 500MB to 1GB.

In addition, these K-plan users now have the same option to give Microsoft even more money as all other Office 365 customers, as Exchange Online Archiving (EOA), including legal hold and unlimited storage, is now available as a paid add-on for all users, according to the relevant blog entry.

Mary Jo Foley at All About Microsoft reached out to Microsoft for clarification on the pricing plans, and it appears that these bonus features are going to cost. The current Kiosk plan will remain available at between $2 and $4 per month, but getting ActiveSync will cost an extra $3.50 per user.

Office 365 claimed some impressive momentum before the end of 2011. It seems that Microsoft is hoping to enhance its small-business value proposition with these upgrades. But will users bite at the increased cost? Keep watching TalkinCloud for updates.