Microsoft has announced upcoming price changes that will impact various subscription plans, including Teams Phone Standard and Power BI, starting April 1, 2025. As your trusted IT provider, we want to ensure you understand how these changes may affect your business and what options you have to manage your costs effectively.
One of the most important things to note is that clients with annual renewals before April 1, 2025, will continue with their current pricing for the duration of their existing contract. However, if your renewal falls after April 1, 2025, your subscription will be subject to the new pricing structure.
Key Price Increases
Several products will see price adjustments, with the most significant being a 33% increase in Teams Phone Standard licenses. Other services, including Power BI Pro and Power BI Premium Per User, will also see adjustments. These changes apply to standalone licenses, while bundled licenses within Microsoft 365 and Office 365 E5 suites will remain unaffected.
Changes to Monthly Billing for Annual Subscriptions
To standardize the billing structure across all purchasing channels, Microsoft is introducing a 5% price increase on per-user monthly billing plans for annual subscriptions. This means that if you are on a monthly billing plan for an annual subscription, starting April 1, 2025, your costs will be higher compared to the standard annual billing option.
Why Is Microsoft Making These Changes?
Microsoft states that these adjustments are intended to standardize pricing and billing across different purchasing platforms while maintaining flexibility for customers. The price increases for Teams Phone and Power BI reflect the added value and enhancements made to these products over the years.
Next Steps
To ensure you are prepared for these changes, we recommend:
- Reviewing your subscription renewal dates to determine if your pricing will be affected this year or next.
- Contacting us for assistance in managing your Microsoft subscriptions and exploring cost-effective options.
If you have any questions about how these changes impact your business, feel free to reach out. We’re here to help you navigate these updates and ensure you get the best value from your Microsoft subscriptions!