On November 12, Microsoft announced updates to its pricing model, effective April 1, 2025. Since then, Microsoft customers and partners have been scrambling to navigate the potential implications of these changes. With peak renewal season just around the corner, IT leaders will be tasked with minimizing the impact of these price increases with already strapped budgets and limited resources.
Trusted Tech Team can help – but before we do, let’s better understand the scope of changes announced by Microsoft.
Microsoft Pricing Changes for 2025
Starting on April 1, 2025, the monthly billing plans for annual term subscriptions across Buy Online, CSP, and MCA-E will be standardized with a price increase of 5%. Products in scope include all annual subscriptions with monthly billing plans including:
- Microsoft 365
- Office 365
- Enterprise Mobility + Security
- Windows 365
- Microsoft Dynamics 365 Services
- Microsoft Power Platform
These changes mean that if you choose to pay monthly for an annual subscription rather than for the entire year upfront, the monthly cost will be 5% higher than the listed annual pricing per month.
For example: If the annual price for a service is $120/year ($10/month when paid annually), the monthly billing price would be $10.50 per month.
Your final price might vary depending on currency exchange rates, local market policies, or how prices are rounded in your region.
Power BI Pricing Updates
Microsoft will also be increasing prices for Power BI Pro and Power BI Premium Per User on April 1, 2025. Microsoft says that this marks the first price increase for Power BI and reflects the collective value that has been added to Power BI over the years.
New Pricing for Power BI:
- Power BI Pro licenses: $14 per user, per month
- Power BI Premium Per User licenses: $24 per user, per month
Teams Phone Pricing Updates
Additionally, the annual billing pricing for Teams Phone annual term subscriptions will also be updated. According to Microsoft, this is to reflect the continuous innovations delivered since the launch of Teams Phone.
Updated Annual Pricing (Monthly Billing +5%):
- Teams Phone Standard: $10 per user, per month
- Teams Phone Standard for Frontline Workers: $5 per user, per month
- Teams Phone with pay-as-you-go calling (for users in UK/CAN): $12 per user, per month ($144 per user/year)
- Teams Phone with pay-as-you-go calling (for users in US & all other service markets): $13 per user, per month ($156 per user/year)
- Teams Phone with Calling Plan (for customers in US/UK/CAN): $17 per user, per month ($204 per user/year)
- Teams Phone with Calling Plan (for customers outside US/UK/CAN): $22 per user, per month ($264 per user/year)
- Teams Phone with domestic and international calling: $34 per user, per month ($408 per user/year)
How Can Trusted Tech Team Help?
We understand the variability of Microsoft updates and pricing adjustments. That’s why we always strive to help our customers optimize their spend on Microsoft licensing.
We employ several means to help our customers avoid unnecessary costs at the best value — from ensuring that you have the right license for your needs to locking in pricing based on contract terms, we're here to simplify your renewals.
