Important Microsoft Licensing & Pricing Updates for 2025

25 Mar 2025

Microsoft has announced several key updates rolling out in 2025 that will impact pricing, licensing structures, and incentives. Here’s what you need to know:

Price Increases Effective April 1, 2025

Annual Commit, Monthly Billing Now 5% More

Starting April 1, 2025, Microsoft will apply a 5% price premium to all annual commit, monthly billed subscriptions across all channels. This applies to new purchases and renewals.

This change affects all customer segments: Commercial, Academic, and Non-Profit.
Customers can avoid this premium by switching to annual billing with upfront payment at renewal.

Note: Standard Monthly term, monthly billed subscriptions are not affected by this update.

Updates to Teams Phone and Power BI Pricing

Also, effective April 1, 2025:

Teams Phone Standard
Power BI Pro
Power BI Premium Per User

Will see price increases for commercial customers on new and renewing subscriptions.

Education and Non-Profit segments are not impacted.
Microsoft 365 E5 subscriptions are also unaffected.

New: Microsoft 365 E5 Security Add-On for Business Premium

Business Premium customers now have the option to enhance their security with the new Microsoft 365 E5 Security add-on.

This suite includes:

Microsoft Entra ID Plan 2
Microsoft Defender for Identity
Microsoft Defender for Endpoint Plan 2
Microsoft Defender for Office 365 Plan 2
Microsoft Defender for Cloud Apps

Need Help Navigating These Changes?

We understand Microsoft licensing and billing can be complex – that’s why our team at BlueReef Technology is here to support a seamless transition as these updates roll out in 2025.

If you have any questions about how these changes affect your organisation, reach out to your account manager or contact us here.

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