Microsoft is updating its cloud service pricing, and here are the key changes you need to know.
These changes include adding a monthly payment option for annual subscriptions and raising prices for Power BI and Microsoft Teams Phone. Microsoft says these updates are intended to give customers more options and improve their services.
More Flexibility with Monthly Payments
Beginning December 1, 2024, Microsoft will offer a more flexible monthly payment option for annual subscriptions. This change will be available for Microsoft 365 Copilot, Microsoft 365 Copilot for Sales, and Microsoft 365 Copilot for Service. However, if you choose to pay monthly, it will cost slightly more—about 5% higher:
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Microsoft 365 Copilot: £31.50 per user per month (up from £30).
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Copilot for Sales and Service: £52.50 per user per month (up from £50).
This new monthly payment option is designed to make it easier for businesses to manage their cash flow while still getting the full benefits of an annual subscription, such as lower overall costs, priority support, and access to exclusive features. Note: Choosing monthly payments still requires a commitment to the entire year.
Starting April 1, 2025, Microsoft will also add this monthly payment option to more products, including Microsoft 365, Office 365, Enterprise Mobility + Security, Windows 365, Microsoft Dynamics 365 Services, and Microsoft Power Platform. However, some products, such as Azure Reserved Instances, Azure Savings Plans, and GitHub, won't be affected by this change.
Price Increases for Power BI and Microsoft Teams Phone
Microsoft is also raising the prices for Power BI and Microsoft Teams Phone starting April 1, 2025. This is the first time they are increasing prices for these products since they launched:
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Power BI Pro: £14 per user per month (up from £10).
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Power BI Premium Per User (PPU): £24 per user per month (up from £20).
Microsoft says these price increases are due to over 1,500 improvements they have made to Power BI over the past six years, including features like enhanced data visualizations, improved AI integration, and expanded collaboration tools. The prices for Power BI Capacities (F SKU), Power BI Report Server, Power BI Embedded, and Power BI Free will stay the same. Government, education, and nonprofit customers will not see these price increases, as Microsoft wants to continue supporting these sectors.
For Microsoft Teams Phone, the annual subscription prices will also go up:
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Teams Phone Standard: £10 per user per month (up from £8).
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Teams Phone Standard for Frontline Workers: £5 per user per month (up from £4).
These price increases will help Microsoft continue improving Teams Phone so businesses can stay connected with enhanced calling features.
Impact on Existing Subscribers
If you are already a subscriber, these price changes could affect your renewal costs and billing options. If you have an annual subscription, the new monthly payment option might give you more flexibility, but it will be a bit more expensive. The upcoming price increases will apply to your current services after the effective dates, so it's a good idea to review your existing plans and decide if you want to make any changes.
These changes aim to enhance Microsoft cloud services and provide more flexible payment options. The new monthly payment option for annual contracts can be helpful for managing your budget, while the price increases for Power BI and Teams Phone will support further improvements and new features.
If you are an existing customer, now is a great time to consider how these changes will affect your subscriptions and decide on the best options for your business. If you have questions or need help, Microsoft's partners and customer service are ready to assist you. Feel free to contact us directly to discuss how these changes impact your business and explore the best options for you.
Source: https://redmondmag.com/Articles/2024/11/12/Microsoft-Pricing-Changes.aspx
