Upcoming Microsoft Changes FAQ
Pricing Updates for Microsoft 365 Copilot and Other Per User Products
Please refer to the Microsoft announcement here for the latest information.
- What is changing on April 1, 2025?
- What does monthly billing for an annual term subscription entail?
- What products are in scope for the price standardization of monthly billing for annual term subscriptions starting on April 1, 2025?
- Will the price for annual subscriptions with monthly billing plans be exactly 5% more than the equivalent annual subscriptions with annual billing plans?
- Which channels and segments are included in this change?
- How does the update effective April 1, 2025, impact existing subscriptions?
- I have a monthly billing plan for annual term subscription that renews before April 1, 2025, when will I see the price increase?
- I have a monthly billing plan for annual subscription that renews after April 1, 2025, when will I see the price increase?
- I have a subscription plan that renews before April 1, 2025, but I want to add seats after April 1, 2025. What will the price of additional seats be?
- How does this price update to monthly billing plans for annual subscriptions impact customers on subscriptions of Microsoft 365 E3/E5 and Office 365 E1/E3/E5 with Teams which are end-of-sale (EOS)?
- What will happen if my subscription for M365 E3/E5 with teams or Office 365 E1/E3/E5 with Teams expires?
- Are there changes that will impact triennial subscriptions?
- What action do I need to take?
- How long do I have to change my subscription from Annual Paid Monthly to Annual Paid Upfront?
Power BI – Product Price Updates
- Do the prices increase for all segments?
- With Power BI pricing increasing, will the annual billing price for annual term Microsoft 365/Office 365 E5 subscriptions be changed?
- How will the Power BI Pro and/or PPU standalone increase impact my current subscription and contracts?
- What will happen with existing or new customers of Power BI after April 1, 2025?
Teams Phone – Product Price Updates
- Do the prices increase for all segments?
- With Teams Phone increasing, will the annual billing price for annual term Microsoft 365/Office 365 E5 subscriptions be changed?
- How will the Teams Phone price increase impact my current subscription and contracts?
- What will happen with existing or new customers of Teams Phone standalones after April 1, 2025?
1. What is changing on April 1, 2025?
First, starting April 1, 2025, Microsoft will standardize their billing structure and introduce a pricing update for all products with per user monthly billing plans for annual term subscriptions across channels and all segments. All new and renewing monthly billing plans for annual term subscriptions starting on April 1, 2025, will be priced 5% higher than the annual billing option for annual subscription plans. Customers may elect to change their billing plan from monthly to annual billing with upfront payment, priced 5% lower than the updated monthly billing option, at their renewal date.
Second, Microsoft announced updated pricing for Microsoft Teams Phone Standard, Power BI Pro, and Power BI Premium Per User. These price updates reflect the annual billing for annual term subscription pricing, and will be implemented as follows for new and existing customers upon renewal:
- Teams Phone Standard: $10 per user, per month ($120 per user/year)*
- Teams Phone Standard for Frontline Workers: $5 per user, per month*
- Teams Phone with pay-as-you-go calling (for users in UK/CAN): $12 per user, per month*
- Teams Phone with pay-as-you-go calling (for users in US & all other service markets): $13 per user, per month*
- Teams Phone with Calling Plan (for customers in US/UK/CAN): $17 per user, per month*
- Teams Phone with Calling Plan (for customers outside US/UK/CAN): $22 per user, per month*
- Teams Phone with domestic and international calling: $34 per user, per month ($408 per user/year)*
- Power BI Pro licenses: $14 per user, per month*
- Power BI Premium Per User licenses: $24 per user, per month*
*The monthly billing plan for annual subscription for these products will be priced 5% higher. There may be slight variations in price due to exchange rate fluctuations, local pricing policies and rounding rules.
See Microsoft’s announcement here:
2. What does monthly billing for an annual term subscription entail?
It means customers commit to an annual term subscription for a product, but instead of paying the entire amount upfront, billing will occur each month on the day after the coverage start date.
3. What products are in scope for the price standardization of monthly billing for annual term subscriptions starting on April 1, 2025?
All products that offer an annual commitment with monthly billing plan are in scope, except Azure RI/Savings Plan, Marketplace, GitHub, AirGap, and on-premises software.
4. Will the price for annual subscriptions with monthly billing plans be exactly 5% more than the equivalent annual subscriptions with annual billing plans?
Percentage changes on individual SKUs may vary slightly from these percentages due to pricing calculations and rounding rules.
5. Which channels and segments are included in this change?
All segments (Gov, EDU, Non-profit) and the following channels (MCA-E, CSP, Buy Online) are included for the annual subscription with monthly billing 5% price update.
6. How does the update effective April 1, 2025, impact existing subscriptions?
Customers with existing annual subscriptions with monthly billing will see the pricing change starting at their next renewal date after April 1, 2025. Customers who want to change to an annual billing plan, which is priced 5% lower than the updated monthly billing option, for their annual subscription can do so at their next renewal date after April 1, 2025. After April 1, 2025, CSP customers on monthly billing plans for annual subscriptions of Office 365 (with Teams)/Microsoft 365 (with Teams) who wish to change to annual billing option will be able to do so and retain their suites with Teams.
7. I have a monthly billing plan for annual term subscription that renews before April 1, 2025, when will I see the price increase?
Customers with monthly billing for annual term subscriptions renewing, or upgrading, before April 1, 2025 will enjoy the existing pricing until their 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 may elect to change their billing plan from monthly to annual billing with upfront payment, priced 5% lower than the updated monthly billing option, at their renewal date. After April 1, 2025, CSP customers on monthly billing plans for annual subscriptions of Office 365 (with Teams)/Microsoft 365 (with Teams) who wish to change to annual billing option will be able to do so and retain their suites with Teams.
8. I have a monthly billing plan for annual subscription that renews after April 1, 2025, when will I see the price increase?
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.
9. I have a subscription plan that renews before April 1, 2025, but I want to add seats after April 1, 2025. What will the price of additional seats be?
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.
10. How does this price update to monthly billing plans for annual subscriptions impact customers on subscriptions of Microsoft 365 E3/E5 and Office 365 E1/E3/E5 with Teams which are end-of-sale (EOS)?
After April 1, 2025, the 5% pricing update will also apply for renewals of monthly billing plans for annual subscriptions of Microsoft 365 E3/E5 and Office 365 E1/E3/E5 with Teams. After April 1, 2025, CSP customers on monthly billing plans for annual subscriptions of EOS SKUs who wish to choose to change to annual billing will be able to do so and retain their suites with Teams. Billing frequency changes for EOS and EOS with Conversion offers will be allowed at renewal after April 1, 2025.
11. What will happen if my subscription for M365 E3/E5 with teams or Office 365 E1/E3/E5 with Teams expires?
If at any time a customer’s subscription for Microsoft 365/Office 365 Enterprise suites with Teams expires, UDT will not be able to renew, upgrade, or add seats to that subscription. If you have one of these suites now, they will continue to auto-renew. CSP Providers, including UDT, will not be able to buy a new subscription of M365/O365 Enterprise suites with Teams for an existing customer.
12. Are there changes that will impact triennial subscriptions?
Beginning April 1, 2025, mid-term billing plan changes will no longer be enabled for triennial term subscriptions. UDT will no longer be able to edit triennial subscriptions at the 1 year or 2-year mark.
13. What action do I need to take?
No action is required unless you intend to change the payment term of your license subscriptions. If you prefer to renew into annual commitment with annual payment terms, please contact us via the following ways:
- Reach out to your UDT Account Manager
- Reply to the email reminder that was sent to you. The subject will contain “Upcoming Microsoft License Renewal – ”
We require a written request to change the terms.
14. How long do I have to change my subscription from Annual Paid Monthly to Annual Paid Upfront?
Your current pricing is locked in until your renewal. We require notice of your intent to change to Annual Paid Upfront, prior to your renewal. If your renewal occurs, the only workaround is to cancel the license within the 7-day cancellation window and repurchase as annual paid upfront. This is NOT the recommended procedure. And this workaround is especially not recommended for for subscriptions of M365 or O365 suites that include teams, as UDT will not be able to repurchase the suite that includes teams.
After the 7-day window, we cannot change your subscription to Annual Paid Upfront until the following year and your pricing will reflect the 5% increase on annual paid monthly until then.
Product Price Updates
⸺⸺⸺⸺ Power BI ⸺⸺⸺⸺⸺
15. Do the prices increase for all segments?
The price increases only impact commercial customers currently. At this time, Government, education, and non-profits are not in scope for Microsoft’s planned Telephony and Power BI price increases.
16. With Power BI pricing increasing, will the annual billing price for annual term Microsoft 365/Office 365 E5 subscriptions be changed?
Currently, there are no pricing changes for customers who purchase Power BI through Microsoft 365 E5 or Office 365 E5 annual term subscriptions with annual billing.
17. How will the Power BI Pro and/or PPU standalone increase impact my current subscription and contracts?
The pricing update to Power BI Pro and/or PPU standalone will go into effect for all new and renewing CSP subscriptions starting April 1, 2025. For those customers on monthly billing plan for annual subscriptions of Power BI Pro and/or PPU standalone, they will also see the 5% pricing increase for renewals after April 1, 2025.
18. What will happen with existing or new customers of Power BI after April 1, 2025?
Customers with existing licenses will continue to have their current pricing until their next renewal. New customers purchasing Power BI Pro and Power BI Premium per user licenses after April 1, 2025, will directly contract with the updated pricing.
⸺⸺⸺⸺ Teams Phone ⸺⸺⸺⸺⸺
19. Do the prices increase for all segments?
The price increases only impact commercial customers currently. At this time, Government, education, and non-profits are not in scope for Microsoft’s planned Telephony and Power BI price increases.
20. With Teams Phone increasing, will the annual billing price for annual term Microsoft 365/Office 365 E5 subscriptions be changed?
Currently, there are no pricing changes for customers who purchase Teams Phone through Microsoft 365 E5 or Office 365 E5 annual term subscriptions with annual billing.
21. How will the Teams Phone price increase impact my current subscription and contracts?
The pricing updates for Teams Phone standalone offers will go into effect for all new and renewing CSP subscriptions starting April 1, 2025. Customers on monthly billing plan for annual subscriptions will also see the 5% pricing increase for renewals after April 1, 2025. This change ensures consistency and transparency across all platforms.
22. What will happen with existing or new customers of Teams Phone standalones after April 1, 2025?
Commercial customers with existing licenses will continue to have their current pricing until their next renewal. New commercial customers purchasing Teams Phone licenses after April 1, 2025, will directly contract with the updated pricing.