Microsoft is rolling out several billing and pricing updates to enhance flexibility and standardization for partners and customers. Here's what you need to know:

1. New Monthly Billing Plan for Microsoft 365 Copilot Annual Subscriptions

Effective Date: December 1, 2024

In response to feedback, Microsoft is introducing a monthly billing option for the following annual subscriptions on the new commerce platform:

• Microsoft 365 Copilot

• Microsoft 365 Copilot for Sales

• Microsoft 365 Copilot for Services

Key Details:

• The monthly billing option will cost 5% more than the upfront annual billing option.

• Customers that have Microsoft 365 Copilot licenses on an annual billed upfront term can switch to the monthly option at their renewal.

• This change offers greater payment flexibility while maintaining the benefits of Microsoft's services.

There is a promotion available for 15% off new Copilot for Microsoft 365 subscription through December 30, 2024, on purchases between 10 and 300 Copilot licenses. Partners adding licenses to existing Copilot for Microsoft 365 customer subscriptions will not receive the discount. For more information, you can check out this article.

2. Standardized Pricing Across Platforms

Effective Date: April 1, 2025

Microsoft is aligning billing structures for all products with per-user monthly billing plans for annual subscriptions.

What’s Changing:

• Monthly billing plans for annual subscriptions will also be priced 5% higher than the upfront annual billing option.

• Customers can adjust their billing plan (e.g., switch from monthly to annual billing) during their renewal period.

• Updates will allow customers to modify billing frequencies for end-of-sale (EOS) offers at renewal, such as Microsoft 365 E3/E5 and Office 365 E1/E3/E5 suites with Teams.  

There will be a promotion for 15% off new Microsoft 365 E5 licenses starting January 1, 2025, through June 30, 2025.

3. Price Updates for Microsoft Teams Phone and Power BI

Effective Date: April 1, 2025

Microsoft is updating pricing for standalone licenses of Teams Phone Standard, Power BI Pro, and Power BI Premium Per User to reflect their increased value since launch. The following new pricing will be implemented for new and existing customers upon renewal.

New Pricing:

• Teams Phone Standard: $10 per user/month

• Power BI Pro: $14 per user/month

• Power BI Premium Per User: $24 per user/month

These prices apply to annual billing plans for annual subscriptions, with a 5% increase for monthly billing plans. Pricing within Microsoft 365 and Office 365 E5 suites remains unchanged for Power BI Pro and Teams Phone.

Our team of Microsoft experts can guide you through this transition and help you optimize your Microsoft licensing strategy. Contact Opkalla today to get started!