Copilot, Teams Phone, Power BI and all Cloud Products (CSP) Small and Big Price Changes at
Microsoft from April 1, 2025
and December 1, 2024
Microsoft from
and
Microsoft has announced pricing changes and new payment flexibility for certain products: on the one hand, these changes generally affect the cloud products (CSP) - the “big” price change. There are also adjustments that relate explicitly to the Copilot, Teams Phone and Power BI products (“small” price changes). The changes will come into effect from April 1, 2025 and for Copilot from December 1, 2024.
The “Small” Price Changes
Microsoft announced the price increases in US dollars, which will affect the euro prices.
Microsoft 365 Copilot: Monthly Billing available from December
For customers using Microsoft Copilot, an annual subscription is still required. However, from December 1, they will have the option of switching their annual subscription to a monthly billing. This change to a flexible payment method goes hand in hand with a price surcharge of 5% - compared to annual billing with upfront payment. This applies to Microsoft 365 Copilot, Microsoft 365 Copilot for Sales and Microsoft 365 Copilot for Service on the new Commerce platform.
Teams Phone: Prices will increase from April 1, 2025
Microsoft has also announced that the subscription price for Teams Phone licenses will increase from April 1, 2025. With Teams Phone, Microsoft provides a cloud service that can be used in companies as a telephone system. Since the introduction of Teams Phone in 2017, the price had remained constant. To reflect the continuous innovations that have taken place since then, Microsoft is now raising the price for the first time.
For the standard subscription, customers must be prepared for a price increase of 25%. The price per user will rise from $8 to $10. Customers obtaining Teams Phone via Microsoft 365 E5 or Office 365 E5 are currently not affected by any changes.
Note: with a monthly billing there will be a 5% surcharge compared to the annual billing price.
From April 1, 2025: Higher Prices for Power BI Licenses
Moreover, the prices for Power BI licenses will also increase from April 1, 2025. This is the first “official” price increase since the introduction of the product. Power BI has been available to customers since 2015. The change affects Microsoft Power BI licenses in the Pro and Premium-per-user variants.
The monthly price for a Pro license will increase by 40% (from $10 to $14) from April. The price for a Power BI Premium-per-User license will increase by 20% (from $20 to $24).
Note: the new prices will apply globally to new and existing customers.
Continuous Innovation and many New Features Microsoft increases
Prices for Power BI
as of April 1, 2020
Prices
as of
The “Big” Price Change from April 2025
For all other Cloud Solution Provider (CSP) solutions - including Dynamics 365 Business Central - Microsoft is increasing the price for the annual subscription with monthly billing by 5%.
Surcharge to Date | Surcharge from April 1, 2025 | |
---|---|---|
Annual Subscription & Annual Billing | 0% | 0% |
Annual Subscription & Monthly Billing | 0% | 5% |
Monthly Subscription & Monthly Billing | 20% | 20% |
So far, only the subscription duration has been decisive for the price. From April 1, 2025, the billing will also determine the price.
So if you want to continue to benefit from the lowest price, you must switch to annual billing.
The change will apply to these Microsoft products from April 1, 2025:
- Microsoft 365
- Office 365
- Enterprise Mobility + Security
- Windows 365
- Microsoft Dynamics 365 (including Business Central)
- Microsoft Power Platform
- Various online services
Note: the monthly payment method will become the new standard payment method, but also comes with a price surcharge of 5%. If you want to save money here, you can switch to annual billing.
Any Questions?
If you need more information about the price changes or have any questions about what you should do now, please contact us.