- Microsoft rolls out monthly payment support for annual subscriptions to more products
- To spread the cost, you’ll need to pay an extra 5%
- Teams Phone and Power BI also get price hikes
Microsoft has announced that it will be increasing prices for many enterprise-focused subscriptions from next month to keep up with rising costs.
To help customers spread the cost of the additional dollars, Redmond will also roll out wider support for monthly payments on annualized plans.
The company confirmed the changes will impact customers across Buy Online, Cloud Solutions Partner (CSP) and enterprise Microsoft Customer Agreement (MCA-E) channels.
Microsoft’s subscriptions are getting more expensive
Microsoft 365 Copilot, Microsoft 365 Copilot for Sales and Microsoft 365 Copilot for Service annual term subscriptions will now be payable annually or monthly from December 1, but they’ll be subject to a price hike of around 5% depending on exchange rates and local pricing.
Teams Phone is also set to get its first price rise since in 2017 launch, with customers set to pay the equivalent of $10/month or $120/year per user from April 1, 2025 based on annual payments. Like Copilot, Teams Phone users will pay a premium of around 5% to spread the cost of an annual commitment over 12 months.
Microsoft confirmed the following product categories will be standardized with the new 5% rise for monthly payments:
- Microsoft 365
- Office 365
- Enterprise Mobility + Security
- Windows 365
- Microsoft Dynamics 365 Services
- Microsoft Power Platform
- Other Online Services
For now, customers looking to avoid the 5% surcharge can continue to pay annually.
Elsewhere in the business, Product Management VP Kim Manis confirmed Microsoft Power BI Pro and Premium Per User (PPU) licenses will get their first price hike since their launch around a decade ago.
Also effective from April 1, 2025, Power BI Pro licenses will cost $14/month per user and PPU licenses will be $24/month per user – both representing a $4 monthly increase. Paying annually for Power BI through Microsoft 365 E5 or Office 365 E5 will avoid the price hike.