Microsoft is introducing a few new pricing increases that you may need to be aware of over the upcoming months. Note that these price increases are not affecting GCC/Government, non-profit, or education licenses at this time. These pricing changes are all coming on April 1, 2025 and all pricing below is based on month-to-month commitments (unless otherwise stated).
5% Increase on Annual Commit, Paid Monthly: Microsoft is adding 5% to the base pricing of their licenses that you commit to annually, but pay monthly. This doesn’t really affect our clients too much as we don’t recommend anything but monthly commitment, monthly payment licenses because of their flexibility. But we wanted to make sure folks were aware, in case they are purchasing licensing themselves.
Teams Phone Price Changes: If you use Microsoft Teams Phone for your phone/VoIP needs, there are going to be some price increases coming in April. These prices below are for the month-to-month licenses that most of our clients use, but annual-payment licenses will increase a similar amount:
- Teams Phone Standard: Increasing from $9.60 to $12 per user per month.
- Teams Phone with Calling Plan: Increasing from $18 to $20.40 per user per month.
If you are currently using a higher-tier Office 365 license (like Office 365 E5 or Microsoft 365 E5, which already include phone capabilities), there is no pricing change at this time.
Power BI Pricing Changes: There are also some price increases coming to some Power BI plans coming in April as well. Again, these price increases are based on the month-to-month prices and comittment that we typically recommend:
- Power BI Pro: Increasing from $12 to $16.80 per user per month.
- Power BI Premium Per User: Increasing from $24 to $29 per user per month.
Copilot Monthly Billing, Annual Commit Option: When CoPilot launched, it was only available as an annual prepaid option ($360/seat/year). It is now available with a monthly-billing term, but at a 5% premium (like what will be happening to the rest of the Office 365 licenses in April). So you can get CoPilot for $31.50/month if you commit to it for a year (which would make it $378 for the year). It’s a year commitment, either way, whether you pay upfront or pay monthly, so you’d only be able to lower or cancel your subscription during the annual renewal window (which is only 7 days every year, which doesn’t give you much flexibility). We’re still awaiting a much more flexible month-to-month Copilot option.
If you want more details on all this directly from Microsoft, you can find more here.