At ABD, as your trusted partner, we are committed to keeping you informed about the upcoming price updates that Microsoft will implement starting April 1, 2025.
These updates will affect several products and services, including Microsoft 365, Copilot, and other per‑user products.
Our goal is to provide you with all the information you need so you can plan and manage your subscriptions effectively.
Below, we offer a detailed summary of the most relevant changes to ensure you are well prepared for these updates.
We would like to remind you that we are here to assist you with any questions or concerns you may have regarding these changes.
Our team is committed to providing you with the best service and support to ensure the transition is as smooth as possible.
Changes in Microsoft’s billing structure and pricing
Starting on April 1, 2025, Microsoft will standardize the billing structure and update prices for all products with monthly billing plans per user in annual subscriptions.
Standardization of monthly billing pricing for annual subscriptions:
This change includes a 5% increase in the cost of monthly plans for annual subscriptions across all platforms.
What does this change mean?
Microsoft aims to simplify and unify pricing across all platforms, ensuring clarity and consistency for all customers.
What options do customers have?
If they want to keep their current subscription price:
- They can change their payment method from monthly to annual with a single upfront payment when renewing their subscription.
- If your subscription is currently annual with a single upfront payment, it will not be affected.
This change will allow them to avoid the 5% increase on 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.
The key points of this update are:
- 5% increase on 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 change 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 billing frequency changes 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 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 (for users in the U.S. and other service markets): $13 per user, per month
- Teams Phone with Calling Plan (for customers outside the U.S./UK/CAN): $22 per user, per month
- 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.
The key points of this update are:
- Payment flexibility: Customers now have the option to pay monthly instead of making an annual upfront payment.
- Monthly billing price: The monthly billing option for annual subscriptions is priced 5% higher than the annual billing option.
What should customers do?
- Existing and new customers: No immediate action is required. Starting April 1, 2025, the new prices will be applied automatically.
- Change of billing modality: Customers interested in keeping the current price may choose to switch their billing modality to annual upfront payment.
Contact us if you need any clarifications or additional information
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?
Frequently Asked Questions
1. What was announced on November 12, 2024?
Microsoft announced several commercial licensing and pricing updates. These updates include the introduction of a new monthly billing plan for annual Microsoft 365 Copilot subscriptions, the standardization of the billing structure for products billed monthly under annual and three‑year subscriptions, and the price updates for Microsoft Teams Phone Standard and Power BI.
2. What changes will take effect on April 1, 2025?
Starting on April 1, 2025, Microsoft will standardize the billing structure and update prices for all products with monthly billing plans per user in annual subscriptions.
The new monthly billing plans for annual subscriptions will be priced 5% higher than the annual upfront billing option. Customers will be able to switch their billing plan from monthly to annual upfront payment, receiving a 5% discount compared to the updated monthly billing option.
3. Which products are included in the scope of the standardized monthly billing pricing for annual and three‑year subscriptions starting April 1, 2025?
All monthly billing plans for annual and three‑year subscriptions in Buy Online, CSP, and MCA‑E will be standardized with a 5% price increase.
This includes products such as Microsoft 365, Office 365, Enterprise Mobility + Security, Windows 365, Microsoft Dynamics 365 Services, Microsoft Power Platform, and other online services.
4. Which products will not be affected by the price update for monthly‑billed annual and three‑year subscriptions?
The following products are out of scope: Azure RI/Savings Plan, Marketplace, GitHub, AirGap, and on‑premises software.
5. How will this price update impact customers with Microsoft 365 E3/E5 and Office 365 E1/E3/E5 with Teams subscriptions that are end‑of‑sale (EOS)?
Starting April 1, 2025, the 5% price increase will also apply to renewals of monthly‑billed annual subscriptions for Microsoft 365 E3/E5 and Office 365 E1/E3/E5 with Teams.
CSP customers with monthly billing plans for annual EOS SKUs who wish to switch to annual billing will be able to do so and retain their suites with Teams at renewal.
6. What is monthly billing for an annual subscription?
Monthly billing for an annual subscription means that customers commit to a one‑year subscription for a product, but instead of paying the full amount upfront, billing occurs each month on the day after the coverage start date.
7. Which products will have the option of monthly billing for annual subscriptions starting December 1, 2024?
Starting December 1, 2024, Microsoft 365 Copilot, Microsoft 365 Copilot for Sales, and Microsoft 365 Copilot for Service will have a monthly billing option for annual subscriptions in Buy Online, CSP, and MCA‑E.
The monthly billing option for annual Copilot subscriptions is priced 5% higher than the annual billing option.
8. Can customers pay for Copilot monthly and cancel their subscription at any time?
The new monthly billing option gives customers the flexibility to pay on a monthly basis. However, they are still committed to an annual subscription, and cancellations follow the standard cancellation policy.
9. How does the Copilot promotion apply to the new monthly billing option for annual Microsoft 365 Copilot subscriptions?
Customers can take advantage of the 15% discount on Microsoft 365 Copilot with the new monthly billing plan for an annual subscription commitment. This promotion expires on April 1, 2025.
Please note that there is a 5% price increase for the monthly billing option in addition to the promotional price.
By committing to a 12‑month subscription, customers can lock in the promotional price for the entire term and have the flexibility to add up to 300 licenses.
10. How will the Power BI price update impact current and new customers?
Customers with existing licenses will continue with their current pricing until their next renewal. New customers purchasing Power BI Pro and Power BI Premium per user licenses after April 1, 2025 will contract directly at the updated prices.
11. Will there be any changes to Power BI features and capabilities?
The price update will impact new and renewing commercial customers. Customers with existing licenses will continue with their current pricing until their next renewal. New commercial customers purchasing Teams Phone licenses after April 1, 2025 will contract directly at the updated prices.
12. How will the Teams Phone price update impact current and new customers?
The price update will impact new and renewing commercial customers. Customers with existing licenses will continue with their current pricing until their next renewal. New commercial customers purchasing Teams Phone licenses after April 1, 2025 will contract directly at the updated prices.
13. Will there be any changes to Teams Phone features and capabilities?
The features available in Teams Phone will remain the same. Customers will continue to benefit from new features and ongoing enhancements that enable flexible, intelligent, and reliable calling in Teams, along with simplified management for IT administrators.