Microsoft is introducing updates to its Microsoft 365 subscription pricing model that will take effect on April 1, 2025. These changes impact how licensing is billed and will affect several commonly used Microsoft products.
If your organization uses monthly billing for annual subscription terms, you’ll want to pay attention.
Monthly Billing Will Cost More
Starting April 1, all Microsoft 365 subscriptions billed monthly on an annual commitment will increase in price by 5%.
To clarify:
• This does not affect month-to-month subscriptions or annual subscriptions billed upfront.
• If you’re on a monthly payment schedule for an annual plan, your price will increase at your next renewal.
• You can avoid this uplift by switching to annual billing before your renewal date.
Additional Price Increases for Specific Products
Microsoft is also raising pricing on a few popular SKUs, even for customers who pay annually:
• Power BI Pro: $14 USD per user/month
• Power BI Premium Per User: $24 USD per user/month
• Teams Phone Standard: $10 USD per user/month
If you’re using monthly billing for any of these services, expect a 5% surcharge on top of these new rates starting April 1.
What You Should Do
To avoid the upcoming cost increases:
• Review your current Microsoft subscriptions — check your billing frequency.
• Switch to annual billing where possible to lock in the lower rate.
• Contact IC 360 if you’re unsure or need support transitioning.
Need help reviewing your Microsoft licensing or planning your next steps?
Reach out to your IC 360 account manager or email us at hello@ic360.ca.