Some Microsoft 365 and Copilot subscriptions are seeing a big price increase
- Microsoft introduces monthly payment support for annual subscriptions on more products
- To spread the costs, you must pay an additional 5%
- Teams Phone and Power BI will also see price increases
Microsoft has announced that it will increase prices on many enterprise-oriented plans starting next month to keep up with rising costs.
To help customers spread the cost of the additional dollars, Redmond will also offer broader support for monthly payments on an annual basis.
The company confirmed that the changes will impact customers across the Buy Online, Cloud Solutions Partner (CSP) and Enterprise Microsoft Customer Agreement (MCA-E) channels.
Microsoft’s subscriptions are becoming increasingly expensive
Annual subscriptions to Microsoft 365 Copilot, Microsoft 365 Copilot for Sales, and Microsoft 365 Copilot for Service are now payable annually or monthly starting December 1, but there will be a price increase of approximately 5% depending on exchange rates and local pricing.
Teams Phone will also see its first price increase since its launch in 2017, with customers paying the equivalent of $10/month or $120/year per user from April 1, 2025 on an annual payment basis. Like Copilot, Teams Phone users pay a premium of around 5% to spread the cost of an annual subscription over 12 months.
Microsoft has confirmed that the following product categories will be standardized with the new 5% increase for monthly payments:
- Microsoft365
- Office 365
- Enterprise mobility + security
- Windows 365
- Microsoft Dynamics 365 services
- Microsoft Power platform
- Other Online Services
Customers who want to avoid the 5% surcharge can continue to pay annually for the time being.
Elsewhere in the company is Product Management VP Kim Manis confirmed Microsoft Power BI Pro and Premium Per User (PPU) licenses will see their first price increase since their launch about a decade ago.
Also starting April 1, 2025, Power BI Pro licenses will cost $14/month per user and PPU licenses will cost $24/month per user – both representing a monthly increase of $4. Paying annually for Power BI via Microsoft 365 E5 or Office 365 E5 prevents the price increase.