Publish Date
13/12/2024
Categories
Blogs Hot Topic
Microsoft Price Changes for Cloud Products
Effective Dates: February 1, 2025, and April 1, 2025
Microsoft has revealed significant updates to its pricing and payment structures across various products. Starting February 1, 2025, customers will benefit from a 5% price decrease for all Microsoft Cloud Solution Provider (CSP) products, aligning costs with foreign exchange fluctuations. Following this decrease, additional price adjustments for billing methods will take effect on April 1, 2025.
Broader CSP Price Changes
Microsoft is revising its pricing structure across all Cloud Solution Provider (CSP) products.
Key Changes:
- February 1, 2025: Prices for CSP products will decrease by 5% in local currencies to reflect exchange rate adjustments.
- April 1, 2025: Pricing will increase for certain billing methods:
– Annual subscriptions paid monthly will incur a 5% surcharge, while annual subscriptions with upfront payments remain unchanged.
– Monthly subscriptions with monthly billing will continue to carry a 20% surcharge.
Pricing Summary
| Payment Type | Current Surcharge | New Surcharge (April 1, 2025) |
|---|---|---|
| Annual subscription & Annual Billing | 0% | 0% |
| Annual Subscription & Monthly Billing | 0% | 5% |
| Monthly Subscription & Monthly Billing | 20% | 20% |
💡Customers are encouraged to switch to annual billing to maintain the lowest possible pricing.
Affected Products
The following Microsoft offerings are impacted by these pricing adjustments:
- Microsoft 365
- Office 365
- Enterprise Mobility + Security
- Windows 365
- Microsoft Dynamics 365 (including Business Central)
- Microsoft Power Platform
- Various other online services
💡Note: Monthly billing will become the default payment option but includes a 5% surcharge. Customers can save by selecting annual billing.
In Case You Missed It: Copilot Pricing Update
Microsoft recently introduced a monthly billing option for Microsoft 365 Copilot products, effective December 1, 2024. While this offers increased flexibility, it comes with a 5% surcharge compared to annual billing with upfront payments.
This change applies to:
- Microsoft 365 Copilot
- Microsoft 365 Copilot for Sales
- Microsoft 365 Copilot for Service
To get a better understanding as to how this affects your business, sign up to our webinar: Microsoft’s Price Changes.