Microsoft’s licensing structure is constantly changing. That can be a headache for small and medium-sized businesses without in-house resources dedicated to managing their business-critical relationship with the world’s largest technology provider.
For most businesses, losing access to programs like Office 365 and other Microsoft products could be an existential event. That’s an unlikely, but possible result of losing touch with the licensing changes Microsoft has recently introduced, including:
Effective for new purchases and renewals on April 1, 2025, Microsoft introduced a 5% increase in the cost of monthly billing plans for annual term subscriptions. This affects Microsoft 365, Office 365, Power Platform, Dynamics 365, and other services.
Also effective April 1, 2025, Microsoft Teams Phone and Power BI have changed. The new costs for these products are:
- Teams Phone Standard: $10 per user/month ($120 per user/year).
- Power BI Pro: $14 per user/month.
- Power BI Premium Per User (PPU): $24 per user/month.
- Monthly billing for annual subscriptions will be 5% higher than these rates.
To better control costs, consider changing your subscription to the arrangement that best suits your needs or updating your payment terms to mitigate the effects of these increases.
New Monthly Billing Option for Microsoft 365 Copilot Annual Subscriptions
In December 2024, Microsoft introduced the option for organizations to pay month-to-month for annual subscriptions. Paying the annual rate upfront unlocks a 5% discount.
Consider adopting the payment plan that best meets your business’ needs.
Expiration of Legacy Suites
Customers with Microsoft 365 or Office 365 E1, E3, and E5 suites that include Teams (now End-of-Sale), have the following options to consider now that these licenses are no longer available. Retain access to Teams by switching from monthly billing to annual upfront billing at renewal, or purchase Teams separately from your Microsoft 365 or Office 365 suite.
Conclusion
These are just the latest changes to Microsoft’s licensing structure. If you have any questions about your licensing arrangement, or the relationship management services that CBIZ offers, contact us today.
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