Starting April 1, 2025, Microsoft will implement a 5% price increase on monthly billing plans for annual term subscriptions. This change affects a range of products, including Microsoft 365, Office 365, Enterprise Mobility + Security, Windows 365, Microsoft Dynamics 365, and more.1
Why the Increase?
Microsoft’s decision to raise prices aims to standardize the billing structure across all platforms, ensuring consistency and transparency. The company also hopes to encourage customers to switch to annual billing, which remains unchanged in price.2
What Does This Mean for You?
If you’re currently on a monthly billing plan, you’ll see a 5% increase in your subscription cost starting April 1, 2025. However, you can avoid this increase by switching to an annual billing plan, which requires an upfront payment but offers cost savings over the year.3
Products Affected
The price increase applies to all new and renewing monthly billing plans for annual term subscriptions. Key products impacted include:
- Microsoft 365
- Office 365
- Enterprise Mobility + Security
- Windows 365
- Microsoft Dynamics 365
- Microsoft Power Platform
- Other Online Services4
How to Manage Your Subscription
To manage your billing and explore options to switch to annual billing, you can follow the steps provided by Microsoft or consult with your MSP Hub representative.
While the price increase may be unwelcome news, it offers an opportunity to reassess your subscription plans and potentially save by switching to annual billing. Stay informed and plan ahead to make the best decision for your needs.
