On April 1st, 2025, Microsoft implemented a price change to the Microsoft 365 Subscription. Let’s dive into the details, explore what this change means for you.

What is Changing?

Microsoft will introduce a 5% price increase for all annual plans across their platforms. The only way to avoid this 5% increase is to switch to an annual prepayment plan. Renewals after April 1, 2025, will reflect the 5% increase, while renewals before April 1 won’t see the increase until the following renewal cycle.

In addition, there will be a price adjustment for specific licenses including Teams Phone, Power BI Pro, and Power BI Premium. The new prices will be reflected in purchases or renewals after April 1, 2025.

• Power BI Premium Per User will be increasing to $24 per user/month.

• Teams Phone standard increases from $8 per user/month to $10 per user/month.

• Power BI Pro rising from $12 per user/month to $14 per user/month.

Why are Prices Going Up?

Microsoft is constantly evolving its services to stay ahead and adjust to industry trends that improve businesses’ capabilities to remain competitive. The company has integrated Microsoft Copilot and other AI features, aiming to improve productivity and collaboration. Microsoft is also investing more in security features to counter the rise in cyberattacks. The frequency of cybercrimes has surged due to AI tools such as ChatGPT and DeepSeek. In response, Microsoft is dedicating more resources to protect their users’ security. These advancements have led to price adjustments that reflect the increased value of the services and tools added.

Impact on SMBs

We urge you to review your billing preferences as the price updates may impact your company’s budgeting. Consider opting for the annual upfront billing plan to avoid the 5% increase and plan accordingly for the new Teams Phone, Power BI Pro, and Power BI Premium prices.

Fore more details on Microsoft’s pricing updates, see the Microsoft FAQ.

Contact DDKinfotech — we can help you understand the new changes and propose solutions tailored to your businesses’ needs.