Microsoft Price Adjustments from April 2025

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Starting on April 1, 2025, Microsoft are introducing a pricing update across their platforms to standardise their billing structure.

  • All new and renewing monthly billing plans for annual subscriptions are priced five percent higher than the annual billing option for annual subscription plans.
  • There are no price increases for annual bill/annual term subscriptions or for monthly bill/monthly term subscriptions.

Examples of product categories within the scope include:

  • Microsoft 365
  • Office 365
  • Enterprise Mobility + Security
  • Windows 365
  • Microsoft Dynamics 365 Services
  • Microsoft Power Platform

The price adjustments will also apply to Gov, EDU and non-profit licenses in the above categories.

Examples:

  • Customers with monthly billing for annual term subscriptions renewing before April 1, 2025 will enjoy their existing pricing until the next renewal.
    For example, a customer with monthly billing for annual subscription renewing on March 1, 2025 will not see the price update until their next renewal on March 1, 2026.
  • Customers with monthly billing for annual subscriptions renewing after April 1, 2025 will see the updated pricing starting at that next renewal date.
    For example, a customer with monthly billing for annual subscription renewing on May 1, 2025 will see the price update starting the next monthly billing cycle.
  • Customers may elect to change their billing plan from monthly billing to annual billing with upfront payment, priced 5% lower than the updated monthly billing option, at their renewal date.
  • If a customer’s subscription renews on Mar 1, 2025, and they need to add seats to the subscription on May 1, 2025 (after the 5% price uplift for A/M on April 1), those seats will be billed at the pre-uplift price.

Source: Microsoft blog – https://aka.ms/MWPricingUpdates/Blog

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