Today, April 1, 2025, the new price updates that Microsoft has implemented for several of its products and services, including Microsoft 365, Copilot, and other per‑user products, come into effect.
Changes in Microsoft’s Billing and Pricing Structure
Starting today, Microsoft will standardize the billing structure and update prices for all products with monthly per‑user billing plans under annual subscriptions.
This change includes a 5% increase in the cost of monthly plans for annual subscriptions across all platforms.
What Options Do Customers Have?
If you want to keep your current subscription price, you can switch your payment method from monthly to annual with a single upfront payment when renewing your subscription. If your subscription is already annual with a single payment, it will not be affected. This change will allow you to avoid the 5% increase in monthly billing.
Products Within the Scope of Price Standardization
The products included within the scope of this standardization are:
- Microsoft 365
- Office 365
- Enterprise Mobility + Security
- Windows 365
- Microsoft Dynamics 365 Services
- Microsoft Power Platform (Power BI, Power Automate, Apps, Pages, Virtual Agents)
- Other Online Services
It is important to note that this list is not exhaustive and that not all annual subscriptions within these categories offer a monthly billing option.
Key Points of the Update
- 5% Increase in Monthly Billing Plans: The new monthly billing plans for annual subscriptions will be priced 5% higher than the annual billing option across all online products.
- Billing Plan Change: Customers will be able to switch their billing plan from monthly to annual with upfront payment, avoiding the 5% increase applied to the updated monthly billing option.
- Mid‑Term Billing Frequency Changes: Mid‑term changes to the billing frequency for three‑year offers will no longer be allowed. Customers will still be able to make billing frequency changes for three‑year offers at renewal.
Microsoft Teams Phone Price Update
Microsoft has updated Teams Phone pricing to reflect the ongoing innovations since its launch in 2017.
The new prices for annual subscriptions are:
- Teams Phone Standard: $10 per user, per month ($120 per user/year)
- Teams Phone Standard for Frontline Workers: $5 per user, per month
- Teams Phone with Pay‑As‑You‑Go Calling: $13 per user, per month (for users in the U.S. and other service markets)
- Teams Phone with Calling Plan: $22 per user, per month (for customers outside the U.S./UK/CAN)
- Teams Phone with Domestic and International Calling: $34 per user, per month ($408 per user/year)
Power BI Price Update
The prices of some Power BI licenses will also be updated starting April 1, 2025. The new prices are:
- Power BI Pro: $14 per user, per month
- Power BI Premium per User: $24 per user, per month
These updates reflect the ongoing innovations and improvements that Microsoft has implemented in these products since their launch.
Monthly Billing Options for Microsoft 365 Copilot
Since December 1, 2024, Microsoft has introduced a new monthly billing plan for annual subscriptions of Microsoft 365 Copilot, Microsoft 365 Copilot for Sales, and Microsoft 365 Copilot for Service.
Key Points of the Update
- Payment Flexibility: Customers now have the option to pay monthly instead of making an upfront annual payment.
- Monthly Billing Price: The monthly billing option for annual subscriptions is priced 5% higher than the annual billing option.
What Should Customers Do?
Starting today, the new prices will be applied automatically. Customers interested in keeping the current price can choose to switch their billing method to annual with upfront payment.
ABD Support and Assistance
At ABD, we are here to assist you with any questions or inquiries you may have regarding these updates.
Our team is committed to providing you with the best service and support to ensure the transition is as smooth as possible.
Do you have any questions or need support? We are here to help you. Contact us.
Frequently Asked Questions
When do Microsoft 365 and Copilot prices increase in 2025?
The price increase for Microsoft 365 and Copilot takes effect on April 1, 2025, and mainly impacts users with monthly billing within annual subscriptions.
Which Microsoft products will see a price increase in April 2025?
The products affected by the price increase include Microsoft 365, Power BI, Teams Phone, Dynamics 365, Copilot, and other services with monthly billing.
How can I avoid the 5% price increase in Microsoft 365?
You can avoid the 5% increase by switching your payment method from monthly to annual with upfront payment before renewing your subscription.
How much will Microsoft Teams Phone cost starting April 2025?
The new price for Teams Phone Standard is $10/user/month, while other versions such as those for frontline workers or those including calling plans have different rates.
Can Microsoft Copilot be paid monthly in 2025?
Yes, since December 2024, Microsoft Copilot offers a monthly billing option within annual subscriptions, with a cost that is 5% higher than the annual payment.