Starting April 1, 2025, Microsoft will implement several pricing changes across its Modern Work subscriptions. These updates are part of Microsoft's ongoing efforts to standardize billing structures and provide more flexibility for our clients. Here's a detailed look at what you can expect and how to prepare for these changes.
Key Changes
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Price Increases for Monthly Billing on Annual Subscriptions
- Microsoft will introduce a 5% price increase for annual subscriptions that are billed monthly. This change affects several popular services, including Microsoft 365, Office 365, Enterprise Mobility + Security, Windows 365, Dynamics 365, and Power Platform.
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New Pricing for Standalone Products
- Specific standalone products will also see price adjustments:
- Microsoft Teams Phone Standard: $10 per user per month
- Power BI Pro: $14 per user per month
- Power BI Premium Per User: $24 per user per month
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Changes to Triennial Subscriptions
- Mid-term billing plan changes will no longer be enabled for triennial subscriptions. Clients will need to select billing plans at the time of purchase and will not be able to edit them at the 1-year or 2-year mark.
What This Means for Your Business
Most of our clients, if not all, rely on Microsoft subscriptions; these changes will impact your budget, especially if you are on a monthly billing cycle. Here are some steps to consider:
- Evaluate Your Billing Cycle: If you are currently on monthly billing, consider switching to annual billing to avoid the 5% increase. Annual billing requires a larger upfront payment but can provide cost savings in the long term.
- Plan Ahead: It's crucial to review your current subscriptions and budget for the upcoming changes. This is a good time to assess your needs and determine if any adjustments are necessary. By doing so, you can stay ahead of the curve and ensure a smooth transition.
- Consult with Your GroupOne IT Account Manager: Remember, our Account Managers are here to assist you every step of the way. They can help you with managing renewals, upgrading licenses, and changing subscriptions, ensuring you get the most out of your Microsoft subscriptions.
How to Take Action
To ensure your business is fully prepared for these pricing changes, follow these steps:
- Review Your Current Subscriptions: Review your existing subscriptions and identify which ones will be affected by the price changes.
- Consider Switching to Annual Billing: If feasible, switch to annual billing to lock in your pricing and avoid the 5% premium on monthly payments.
- Consult with Your GroupOne IT Account Manager: Work with your Account Manager to manage your subscriptions and make any necessary adjustments before the changes take effect.
By planning and making informed decisions, you can minimize the impact of these pricing changes on your business and continue to leverage the full benefits of Microsoft's Modern Work and GroupOne IT solutions.
Wrap-up
GroupOne IT specializes in providing Managed IT Services for small to medium sized businesses. Whether in a full capacity, or a co-managed relationship, we provide IT Support, Cloud Services, Cyber Security, Voice (VoIP), Consulting, Microsoft Dynamics Services, and more. Simply put, we keep your systems up, your data secure, and your business thriving.