Microsoft have this week announced a number of pricing changes involving Copilot products, Power BI, Teams Phone, and annual commitment subscriptions billed monthly.
Price increases for annual subscriptions paid monthly
For those customers who commit to an annual term subscription, but instead of paying the entire amount upfront, pay monthly, there will be a 5% increase across a wide range of products, including:
- Microsoft 365
- Office 365
- Enterprise Mobility and Security
- Windows 365
- Microsoft Dynamics 365
- Microsoft Power Platform
- Other Online Services
The price increase comes into effect on April 1st, 2025 and affects products bought via the Web Direct, CSP, and MCA-E channels. The increase will apply to both new and renewing subscriptions. For customers looking to avoid the 5% increase, we would recommend switching to paying annually upfront.
This update to the billing structure aims to continue to provide customers with cash flow flexibility while enabling Microsoft to maintain the value and benefits of their services.
For more information on these changes, click here.
Teams Phone price increases
Since its inception in 2017, Microsoft Teams Phone has undergone a raft of changes and innovations and this is the first set of price increases. They affect the following products:
- Teams Phone Standard: $10 per user, per month ($120 per user/year)
- Teams Phone Standard for Frontline Workers: $5 per user, per month ($60 per user/year)
- Teams Phone with pay-as-you-go calling: $12 per user, per month ($144 per user/year)
- Teams Phone with Calling Plan: $17 per user, per month ($204 per user/year)
- Teams Phone with domestic and international calling: $34 per user, per month ($408 per user/year)
(UK pricing will be announced in due course).
These prices are based on an annual subscription, paid upfront. If paid monthly on the annual commitment, they will also be subject to the same 5% uplift as other billed-monthly products. These price changes come into effect on April 1st, 2025.
Power BI price increases
There are two price changes affecting Power BI products:
- Power BI Pro licences will be $14 per user per month
- Power BI Premium Per User licences will be $24 per user per month
(UK pricing will be announced in due course).
These prices are also based on an annual subscription, paid upfront. If paid monthly on the annual commitment, they will also be subject to the same 5% uplift as other billed-monthly products. These price changes come into effect on April 1st, 2025.
For more details on the price changes, click here.
New monthly billing option for Microsoft 365 Copilot products
Until now, Copilot products had to be purchased on an annual subscription and paid upfront. Microsoft have announced that from December 1st, 2024, it will be possible to purchase these products annually and be billed monthly. The change applies to:
- Microsoft 365 Copilot
- Microsoft 365 Copilot for Sales
- Microsoft 365 Copilot for Service
The 5% uplift that applies to monthly billing for annual subscriptions will also be applied.
Summary
Although cost increases for businesses are never welcomed, there is still the opportunity for those being billed monthly for their annual subscriptions to avoid the price increases (with the exception of Power BI and Teams) by switching to annual billing instead. If your organisation has this such arrangement and want to talk with one of our experts about transitioning from monthly to annual billing, please get in touch before April 1st, 2025.
