Microsoft is shaking up its pricing strategy for 2025, introducing significant changes to monthly billing and product licensing that will impact businesses and organizations.
Here’s a comprehensive breakdown of the upcoming modifications.
Monthly Billing Flexibility with a Catch
Starting December 1st, Microsoft will offer a new monthly billing option for annual subscriptions, but it comes with a 5% price premium. This option will apply to several key product lines:
- Microsoft 365
- Office 365
- Enterprise Mobility + Security
- Windows 365
- Microsoft Dynamics 365 Services
- Microsoft Power Platform
**Important Note**: While this offers more payment flexibility, users are still committed to the full annual term and cannot cancel mid-contract.
Significant Price Increases for Specific Microsoft Products
Teams Phone Licenses
- Teams Phone Standard will increase from $8 to $10 (25% increase)
- Teams Phone Frontline will rise from $4 to $5 (25% increase)
- Calling plans will increase by approximately $2 per user per month
Power BI Licenses
- Power BI Pro will jump from $9.99 to $14 (40% increase)
- Power BI Premium will increase from $20 to $24 (20% increase)
Microsoft justifies these increases by pointing to substantial improvements, noting over 1,500 enhancements to Power BI in the past six years.
Who’s Exempt?
- Annual and triennial subscriptions paid upfront are not affected
- Non-profit organizations maintain their 15% discount
- Consumer, education, and government customers have special considerations
Key Takeaways
- Changes will be fully implemented by April 1st, 2025
- Monthly billing offers more payment flexibility at a 5% premium
- Some product lines will see significant price increases
- Microsoft aims to standardize its pricing across different service segments
**Pro Tip**: Consider working with Miro to ensure your purchasing is your best option. Microsoft may change the annual billing terms and customers with expiring agreements may see large price increases. Miro can help you prepare for different scenarios so there are no surprise budget costs when renewing your Microsoft Agreement.