Microsoft has announced the next price updates for cloud products effective on 1 April 2025 (here and here). The prices apply to new license orders from April 2025, for existing licenses from the next renewal date.
- Starting 1 December 2024, organizations will be able to pay for Microsoft 365 Copilot, Microsoft 365 Copilot for Sales and Microsoft 365 Copilot for Service with a monthly billing frequency, and an annual commitment. Previously, billing was offered per year or three years. Microsoft now charges a 5% surcharge on monthly payments.
- Starting 1 April 2025, the 5% surcharge for monthly payment (and annual commitment) will also apply to other licenses. A surcharge of 20% on average has already been charged for licenses with a monthly commitment since 2022.
To continue providing customers with cash flow flexibility while maintaining the value and benefits of our services, we will standardize the monthly billing price for all new and renewing annual term subscriptions starting on April 1, 2025. … This standardization will introduce a 5%* price update to the monthly billing plans for annual subscriptions across Buy Online, CSP, and MCA-E.
Teams Phone
On 1 April 2025, Microsoft will increase the prices for Teams Phone licenses. As always, Microsoft is only listing the new US prices for now.
- Teams Phone Standard: $10 per user, per month ($120 per user/year)
- Teams Phone Standard for Frontline Workers: $5 per user, per month ($60 per user/year)
- Teams Phone with pay-as-you-go calling (for users in UK/CAN): $12 per user, per month ($144 per user/year)
- Teams Phone with pay-as-you-go calling (for users in US & all other service markets): $13 per user, per month ($156 per user/year)
- Teams Phone with Calling Plan (for customers in US/UK/CAN): $17 per user, per month ($204 per user/year)
- Teams Phone with Calling Plan (for customers outside US/UK/CAN): $22 per user, per month ($264 per user/year)
- Teams Phone with domestic and international calling: $34 per user, per month ($408 per user/year)
Power BI
Microsoft will also increase prices for Power BI on 1 April 2025.
- Power BI Pro licenses will be $14 per user per month (previously $10)
- Power BI Premium Per User licenses will be $24 per user per month (previously $20)
