Price Updates and Subscription Plans in Microsoft 365, Power BI, and Teams Phone
Microsoft has announced a series of significant changes to the licensing and pricing plans for several of its key products, effective from December 1, 2024, and April 1, 2025. These price updates are designed to offer greater flexibility to customers and reflect ongoing investments in innovation and service improvements.
Standardization of Prices and 5% Increase in Annual Plans with Monthly Billing
Starting April 1, 2025, annual subscriptions with monthly billing will see a 5% increase. This adjustment aims to ensure consistency and transparency in pricing across all channels and segments. You can find additional information about these price updates in their official announcement.
The products affected by this change include:
- Microsoft 365
- Office 365
- Microsoft Dynamics 365
- Windows 365
- Enterprise Mobility + Security Services
- Microsoft Power Platform
Notably, certain products will not be affected by this price increase, including:
- Azure RI/Savings Plan
- Marketplace
- GitHub
- AirGap
- Perpetual Software
Impact on Existing Subscriptions:
Subscriptions renewed before April 1, 2025, will maintain their current price until the next renewal.
On the other hand, subscriptions renewed after this date will apply the new prices immediately.
Changes in Triennial Subscriptions:
Starting April 1, 2025, changes to billing plans for three-year subscriptions will not be allowed.
Partners must select the appropriate billing plan at the time of the initial purchase.
New Microsoft 365 Copilot Licensing Plans
Since December 1, 2024, Microsoft has made available a new annual commitment licensing plan with monthly payments for Microsoft 365 Copilot, Copilot for Sales, and Copilot for Service. This plan allows customers to pay monthly instead of making an upfront annual payment, although with an additional cost of 5% compared to the annual payment. You can find more details on the official Microsoft announcement page.
Key Details:
- Payment Flexibility: Customers can opt for monthly payments while maintaining the annual commitment. This option is ideal for those who prefer to spread costs throughout the year.
- Availability: This option will be available for academic customers (EDU), but not for NGOs. NGOs are not eligible for monthly billing during the annual period.
Power BI Price Increase
Starting April 1, 2025, the prices of some Power BI licenses will increase to reflect continuous improvements and innovation since its launch in 2015. For more detailed information on this price update, you can consult Microsoft’s official announcement on their blog.
New Prices:
- Power BI Pro: from $10 to $14 per user per month.
- Power BI Premium per user: from $20 to $24 per user per month.
There will be no changes to products such as Power BI Embedded and the free Power BI account.
Impact on Subscriptions:
- Existing customers will maintain their current prices until their next renewal.
- New customers will directly contract the updated prices starting April 1, 2025.
Teams Phone Price Update
Also starting April 1, 2025, the prices of Teams Phone subscriptions will be updated to reflect continuous innovations since its launch in 2017.
New Prices:
- Standard Teams Phone: from $8 to $10 per user per month.
- Standard Teams Phone for frontline workers: from $4 to $5 per user per month.
- Teams Phone with national and international calls: from $32 to $34 per user per month.
Impact on Subscriptions and Contracts:
New and renewed commercial customers will see the price increase starting April 1, 2025.
Existing customers will maintain their current prices until their next renewal.
Price Standardization:
Price standardization will also apply to Teams Phone subscriptions with annual commitment and monthly payment, with a 5% update starting April 1, 2025. This change ensures consistency and transparency across all platforms.
Stay Updated with Itequia
As your licensing provider, Itequia is committed to keeping you informed about the most relevant changes in Microsoft products. If you have any questions or need assistance managing these updates, do not hesitate to contact us. We are here to help you maximize the value of your technology investments.