Exciting Updates for Microsoft 365 Copilot & Teams Phone Pricing!
Microsoft is introducing a monthly billing option for annual subscriptions of Microsoft 365 Copilot, giving customers more flexibility! This new plan will be priced 5% higher than the upfront annual payment option.
Additionally, starting April 1, 2025, pricing updates will apply to Microsoft Teams Phone, Power BI Pro, and Power BI Premium Per User to reflect their evolving value.
What this means for you:
✅ More billing flexibility for Copilot subscriptions
✅ Standardized pricing structure across Microsoft platforms
✅ First price update for Teams Phone & Power BI in years
Stay ahead of these changes and explore your options! Read Microsoft’s full update below:
Flexible billing for Microsoft 365 Copilot; pricing updates for annual subscriptions and Teams Phone
On December 1, 2024, we're introducing a new monthly billing plan for annual subscriptions of Microsoft 365 Copilot, Microsoft 365 Copilot for Sales, and Microsoft 365 Copilot for Services.
Date: November 12, 2024
Workspace: General
Impacted audience: All Cloud Solution Provider (CSP) partners and customers
Introducing monthly billing option for annual term subscriptions of Microsoft 365 Copilot
In response to customer and partner feedback for more flexible payment options, on December 1, 2024, we're going to introduce a new monthly billing plan for annual subscriptions of Microsoft 365 Copilot, Microsoft 365 Copilot for Sales, and Microsoft 365 Copilot for Service on the new commerce platform. This new monthly billing option for annual subscriptions will be priced 5% higher than the annual billing (upfront payment) option for annual subscription plans for Microsoft 365 Copilot, Microsoft 365 Copilot for Sales, and Microsoft 365 Copilot for Services.*
Standardizing the billing structure with a pricing update
For all other products with per user monthly billing plans for annual subscriptions, we're introducing the same pricing update to standardize the billing structure across Buy Online, CSP, and MCA-E.** Starting on April 1, 2025, all new and renewing monthly billing plans for annual subscriptions will be priced 5% higher than the annual billing option for annual subscription plans.*
Customers can elect to change their billing plan, from monthly billing to annual billing, for their annual subscription at their renewal date. Starting on April 1, 2025, customers on end-of-sale (EOS) and EOS with Conversion offers, such as Microsoft 365 E3/E5 and Office 365 E1/E3/E5 suites with Teams, will also be able to schedule a change to edit the billing frequencies for their annual subscriptions at renewal. Trials will continue to default to renewing into annual subscriptions with monthly billing. However, partners will be able to specify values, such as license quantity, term, and billing frequency, for paid subscriptions their trial purchases renew into starting in April 2025 as well. Partners will also be able to specify if they don't want their trial to autorenew.
This update to the billing structure aims to continue to provide customers with cash flow flexibility while enabling us to maintain the value and benefits of our services. By standardizing the billing structure, we ensure consistency and transparency across all platforms.
Updating pricing for Microsoft Teams Phone and Power BI
We'll also be updating the pricing for Microsoft Teams Phone Standard, Power BI Pro, and Power BI Premium Per User starting on April 1, 2025. This marks the first price increase for both standalone products since we launched Teams Phone in 2017 and Power BI in 2015 and reflects the collective value that has been added to Teams Phone and Power BI over the years. These price updates will be implemented as follows for new and existing customers upon renewal:
Teams Phone Standard licenses will be $10 per user per month***
Power BI Pro licenses will be $14 per user per month***
Power BI Premium Per User licenses will be $24 per user per month***
Currently, there are no other pricing changes for customers who purchase Power BI Pro and Teams Phone licenses via the Microsoft 365 and Office 365 E5 suites. This pricing update currently applies to commercial customers.
* There might be slight variations in price due to exchange rate fluctuations, local pricing policies, and rounding rules.
** For more information on in-scope products, see the FAQ.
*** This pricing reflects the pricing for annual billing plan for annual subscriptions. The monthly billing plan for annual subscription will be priced 5% higher, and there might be slight variations in price due to exchange rate fluctuations, local pricing policies, and rounding rules.