Microsoft 365 Pricing Update: 5% Increase from 1st April 2025

Microsoft has announced a 5% price increase for all Microsoft 365 licences, effective 1st April 2025. This change applies to all monthly billing plans for annual subscriptions, aligning pricing structures across all purchasing platforms.

We want to emphasise that this update is being implemented directly by Microsoft and applies to all customers, partners, and resellers globally. Unfortunately, this adjustment is beyond our control.

What’s Changing?

Starting 1st April 2025:

• Monthly billing plans for annual subscriptions will cost 5% more than the annual billing option.
• This adjustment standardises Microsoft’s billing structure across all platforms.

Customers on monthly billing plans can switch to annual billing at their next renewal date to maintain the lower price.

What Does This Mean for You?

1. Monthly Billing Increases:
   • If you remain on a monthly billing plan for an annual subscription, your costs will increase by 5%.
2. Annual Billing Advantage:
   • Opting for annual billing before your renewal date allows you to lock in the current pricing and avoid the increase.
   • Annual billing requires upfront payment but guarantees price stability for the term.

Why Is Microsoft Making This Change?

Microsoft’s update aims to provide customers with greater cash flow flexibility while ensuring consistent and transparent pricing across all platforms. The 5% price adjustment helps maintain Microsoft services’ value and ongoing benefits.

Who Will Be Impacted?

• All Microsoft 365 Customers: Businesses and organisations using Microsoft’s cloud-based services, including Teams, Power BI Pro, and Enterprise Mobility and Security.
• Monthly Billing Customers: Any organisation on monthly billing plans for annual subscriptions.
• Charities: Free licences remain unaffected, but paid licences will see the 5% increase.

How to Avoid the Price Increase

To minimise the impact of this change, we recommend transitioning to an annual billing option before 1st April 2025. By doing so:

• You can lock in the existing pricing.
• You ensure cost predictability for the year ahead.
• You gain protection from the 5% increase for the duration of your annual term.

While annual billing requires upfront payment, it is an effective way to maintain your current pricing and avoid the slight price bump coming with monthly billing plans.

Next Steps

To ensure a smooth transition and avoid the price increase:

1. Review your current subscriptions and identify plans on monthly billing.
2. Consider switching to annual billing before your next renewal date.
3. Contact us for support or guidance in adjusting your billing structure.

We understand this pricing update may cause concern, but it’s important to reiterate that Microsoft sets this change and impacts all partners and customers globally. Our team is here to help you navigate these adjustments and ensure the most cost-effective solution for your organisation.

For more information, read the Microsoft article here