Flexible Billing and Pricing Updates for Microsoft Subscriptions
Microsoft will be increasing prices on Annual Subscriptions that are paid monthly. Please review the following announcements from Microsoft to see how you may be impacted.
On December 1, 2024, Microsoft introduced a new monthly billing plan for annual subscriptions of Microsoft 365 Copilot, Microsoft 365 Copilot for Sales, and Microsoft 365 Copilot for Service. There are no changes in pricing to the annual-paid-annually options and this monthly pricing option is priced 5% higher than the annual-paid-annually option.
Additionally, Microsoft announced it will be standardizing their billing structure for products with per user monthly billing plans for annual subscriptions. Starting April 1, 2025, Microsoft will implement a 5% pricing increase across all new and renewing annual paid monthly subscriptions.
Also starting April 1, 2025, there will be updated pricing for Microsoft Teams Phone Standard, Power BI Pro, and Power BI Premium Per User. These pricing updates will be implemented for new and existing subscriptions upon renewal:
- Teams Phone Standard licenses will be $10 USD per user per month
- Power BI Pro licenses will be $14 USD per user per month
- Power BI Premium Per User licenses will be $24 USD per user per month
For more information on these pricing updates, please review the Microsoft announcement here.
Summary
- If you’re paying annually for licensing your pricing will not change. You are currently receiving the best discount for your licensing.
- If you’re paying monthly with an annual commitment (this is the most common option) then you will be affected. Your pricing will be increasing by approximately 5%.
- If you pay monthly without an annual commitment your pricing will not change. You are already paying an estimated 20% higher for your licenses. This option provides flexibility for adjusting licenses throughout the year but at a high price.
These changes go into effect on April 1, 2025, so renewals that are done prior to that date will maintain the current pricing structure for one more year.