Microsoft’s April 1, 2025 Price Updates

Microsoft’s 2025 Price Updates: What You Need to Know and How to Save

Microsoft has announced pricing updates that will impact Copilot subscriptions, many annual subscription products, and Teams Phone. These changes, set to take effect April 1, 2025, will affect both businesses and IT providers. Staying ahead of these updates will help you make informed decisions and minimize unnecessary costs.

📞 Schedule your Free Microsoft Licensing Review today! Let’s work together to minimize your costs and maximize your IT investment.

What’s Changing?
1. Copilot Subscription Pricing Updates & New Monthly Billing Option
In response to customer feedback, Microsoft introduced a monthly billing option for its Copilot subscriptions, effective December 1, 2024. This applies to:

     • Microsoft 365 Copilot
     • Copilot for Sales
     • Copilot for Service

While this option offers businesses more flexibility, monthly billing comes with a 5% price increase compared to annual prepayments. Organizations that prefer to spread costs out over time now have an option to do so while maintaining full access to Copilot’s AI-driven productivity tools.

2. Standardized Monthly Billing for Annual Subscriptions
Starting April 1, 2025, Microsoft is standardizing monthly billing prices for most annual subscriptions, aligning them with the same 5% price increase as Copilot. This change provides consistency but also means businesses that choose monthly payments instead of annual billing will pay more.

Key impacted subscriptions include:
     • Microsoft 365
     • Office 365
     • Dynamics 365 solutions
     • Windows 365
     • Power Platform
     • And more

To avoid the price increase, businesses should review their current billing plans and switch to an annual subscription before renewal if possible.

3. Teams Phone Pricing Update
Microsoft is also increasing Teams Phone pricing for the first time since its launch. As of April 1, 2025, the new rates will be:
     • Teams Phone Standard – $10/user/month ($120/year)
     • Teams Phone with Domestic & International Calling – $34/user/month ($408/year)

No pricing changes will affect Teams Phone licenses bundled with Microsoft 365 E5 or Office 365 E5. Existing customers can maintain their current pricing until renewal, but new customers will be subject to the updated rates starting in April 2025.

What Should Businesses Do Next?
1. Review Your Licensing Plans Now – Assess your current Microsoft 365, Copilot, and Teams Phone subscriptions. Determine whether annual billing makes more sense to lock in lower rates before the price increases take effect.

2. Take Advantage of Our Free Licensing Review – We’ll help you identify potential savings and ensure you’re only paying for what you actually need. Many businesses unknowingly overspend on unnecessary licenses—our evaluations have helped companies save up to 20% on Microsoft licensing costs.
3. Plan for Future Subscription Needs – If your business anticipates growth or changes in software usage, now is the time to strategize and optimize your licensing structure.

FAQs: Answering Your Top Questions
Q: What are the benefits of monthly billing for Copilot and annual subscriptions?
A: Monthly billing provides greater flexibility for organizations that don’t want to make an upfront lump-sum payment. However, it comes at a 5% higher cost than annual prepayment.

Q: Will existing Teams Phone customers be impacted by the price increase?
A: If you already have Teams Phone, your current pricing remains until your next renewal date. At renewal, the updated rates will apply. New customers subscribing after April 1, 2025, will automatically adopt the new pricing.

Q: Which subscriptions will have standardized monthly pricing?
A: Most major Microsoft 365, Office 365, Dynamics 365, Windows 365, and Power Platform annual-term subscriptions will see a 5% price increase for monthly billing.

Get Ahead of the Changes – Let’s Optimize Your Microsoft Licensing
Microsoft’s pricing updates bring added flexibility, but they also mean higher costs if you don’t act now. Tech Support Now LLC is here to help you navigate these changes and ensure your business stays efficient and cost-effective.

📞 Schedule your Free Microsoft Licensing Review today! Let’s work together to minimize your costs and maximize your IT investment.

👉 Contact us now to secure your pricing before the April 2025 increase!