Price increases aren’t exactly the news anyone wants to hear – but they are inevitable during a time of increased costs and growing demand for more advanced, secure, and scalable technology solutions.
Microsoft recently announced pricing updates and changes to their billing structure. This article will break down everything you need to know about the changes so you can be prepared. We’ll also share the benefits of working with IT procurement specialists to optimize your Microsoft 365 setup and protect your business.
Ultimately, you’ll be better equipped to achieve success and long-term growth. (Check out our guide that compares the various Microsoft 365 for Business plans and how they address your cybersecurity needs to learn the benefits of working with industry-leading tools.)
Still, we understand managing your IT budget effectively is a huge priority. Since we can’t avoid these price updates, we can at least try to get ahead of them. Below, we’ve highlighted the upcoming changes for April 1. Please note these prices are in US dollars.
The Three Major Price Updates You Need to Know for April 1st
- Monthly Billing Plans for Annual Term Subscriptions
For all new and renewing monthly billing plans on annual subscriptions, expect a 5% price increase compared to the annual billing option.
Your current pricing will remain in effect until the end of your contract term. When it’s time for renewal, you can keep your existing pricing by switching to annual billing with an upfront payment.
The following products will be affected by the 5% price update:
- Microsoft 365 Office 365
- Mobility + Security
- Windows 365
- Microsoft Dynamics 365 Services
- Microsoft Power Platform
Keep in mind, this list isn’t exhaustive, and not all annual term subscriptions in these categories offer a monthly billing option.
- Microsoft Teams Phone Standard
For new and renewing commercial customers, the price of Teams Phone Standard will be $10 USD per user, per month ($120 USD per user/year). There are currently no price changes for customers purchasing Teams Phone through Microsoft 365 E5 or Office 365 E5 annual term subscriptions.
Not currently using Microsoft’s cloud-based phone system? Or perhaps you want to learn how IT procurement specialists recommend maximizing your subscription? Read about how Microsoft Teams Phone can revolutionize your workplace communication.
- Power BI and Power BI Premium
The price for annual subscriptions of Power BI Pro will be $14 USD per user per month ($168 USD per user/year), and Power BI Premium Per User will be $24 USD per user per month ($288 USD per user/year). If you’re on a monthly billing plan for your annual subscription, an additional 5% price increase will apply.
If you haven’t used it before, Power BI is Microsoft’s data visualization platform. This tool lets you create powerful and engaging reports with minimal effort. You can even integrate it across the platform to better understand your data as you move throughout your workday.
With these Microsoft price updates on the horizon; now it’s a good time to explore the key Windows 11 features and benefits to ensure you maximize your investment in their product ecosystem.
A New Monthly Billing Option for Microsoft 365 Copilot – Now Available
Microsoft is also offering a new billing option for its AI tool to provide flexibility based on your budgeting needs.
You can choose to pay monthly for Microsoft 365 Copilot, Microsoft 365 Copilot for Sales, and Microsoft 365 Copilot for Service annual term subscriptions. Keep in mind that the monthly billing option comes at a 5% higher price than the annual upfront payment plan – which, at this time, remains the same.
Artificial intelligence is still quite new – so if your organization would like to take advantage of this innovative technology, make sure that you adopt evidence-based strategies for integrating AI in your organization. Whenever leveraging a new product, a good IT procurement approach would involve carefully assessing your requirements and your security posture.
Partner with PC Corp to optimize your Microsoft 365 licencing
If you want to make the most out of your Microsoft 365 setup without overspending, your organization may want to consider working with those who know business software.
Our IT procurement team can help you get through the inevitable to experience the least risk and best value. We can help you find the right mix of plans and features that fit your business needs, and we can explain how any price changes may affect your organization. You’ll also have support in navigating the often-confusing world of licensing, so you can keep costs down and pay only for what you truly need.
While our IT projects team can support you by ensuring you leverage the right security features within Microsoft to protect your operations.
Contact us to discuss how PC Corp can provide you support in understanding your software licensing needs and ensuring your Microsoft 365 tools operate securely and efficiently for your team.
