Navigating the upcoming Microsoft pricing updates: what you need to know

Microsoft is implementing changes to its pricing for customers purchasing under the Cloud Solution Provider CSP Program and other licensing models. Before these changes go into effect on April 1, 2025, we want to help your organization understand these changes so you can plan your budgets and subscription strategies effectively. Let’s take a closer look.

Microsoft 365 Copilot price increase

Microsoft 365 Copilot licenses will see a 5% price increase on monthly billing plans under annual subscriptions. In December 2024, flexible billing options were introduced, allowing customers to choose between monthly and annual billing for Microsoft 365 Copilot. The monthly plan option is meant to provide flexibility to customers, providing an alternative to the upfront annual payment, making it easier for organizations to manage cash flow and align to their financial planning and budgeting needs.

With these price changes on the horizon, now is a crucial time to review existing contracts and explore cost-saving opportunities. To support customers, Microsoft is currently offering a 50% discount on Microsoft E5 Compliance for all customers with Microsoft 365 Copilot licenses. This promotion is available until February 1, 2026, and applies to both new and existing customers who have previously purchased Microsoft 365 Copilot without the Microsoft E5 Compliance SKU. Taking advantage of this offer could help your organization optimize their licensing costs while enhancing compliance capabilities.

Standardization of monthly billing for annual subscriptions

Microsoft is standardizing the monthly billing price for all annual term subscriptions across Buy Online, CSP, and MCA-E models with a 5% price increase. This change aims to provide a more consistent and predictable billing experience for customers. Those who prefer to pay upfront for the entire year can continue to do so without any additional cost. This standardization is meant to help simplify the billing process and make it easier for customers to understand their payment obligations.

Impacted product categories include Microsoft 365, Office 365, Enterprise Mobility + Security, Windows 365, Microsoft Dynamics 365 Services, Microsoft Power Platform, and others. Reach out to your account manager for more information on this change.

Teams Phone annual billing price increase

If you have annual billing for Teams Phone standalone, your plan will see a 5% price increase. Teams Phone has been a popular offering since its launch. The price increase reflects the continuous innovations and value delivered through this service, and the need to continue providing flexible, smart, and reliable calling capabilities natively within Microsoft Teams.

Our advice to mitigate the cost impact

To help organizations navigate these pricing updates, SoftwareOne offers several strategies:

1. Evaluate the benefits of different payment options. Consider the advantages of various payment plans. Monthly billing may offer flexibility, but annual payments can provide cost savings.
2. Align subscription plans with business objectives and cash flow requirements. Ensure that your subscription plans align with your organization's goals and financial situation. This alignment can help optimize your investment in Microsoft services. Work with your account manager to discover solutions tailor-fitted to your needs.
3. Consider upfront annual payment options. By opting for upfront annual payments, organizations can avoid the price increase and potentially secure better rates.
4. Benefit from exclusive discounts. New customers can take advantage of a 15% discount on ME5 with SoftwareOne, providing additional savings.

Partner with SoftwareOne as your trusted advisor

With over 30 years of experience as a reseller in cloud solutions, SoftwareOne is well-equipped to guide organizations through these changes. Our comprehensive knowledge of the Microsoft CSP program and strong CSP offering ensure that you receive the best possible support and services.

What you get with every license purchased through SoftwareOne

• 24/7/365 follow-the-sun support
• Flexible licensing
• Billing expertise
• Tailored advisory and assessment services