Well, it’s that time again… Microsoft have announced their price increases for 2025, and they cover quite a few products including their AI product… Co-Pilot.
Changes
All licenses on a pay-monthly basis on CSP, MCA-E, and Buy Online will increase by 5% from April 1st, 2025.
These include:
- Microsoft 365
- Office 365
- Enterprise Mobility + Security
- Windows 365
- Dynamics 365
- Power Platform (Inc. Power BI)
The products not affected by any changes are:
- Azure Reserved Instances
- Azure Savings Plans
- Azure Marketplace
- Github
This means that companies looking to save will be better off with an annual commitment. That said, this doesn’t fit every busy model or budget. It is disappointing that Microsoft has made this decision; however, I think it won’t be long before we see an increase in longer contract periods as well.
In addition to the increase in monthly commits, Power BI and Teams Phone licenses will be increasing as well.
From April 1st, 2025, Power BI pricing is increasing by up to 40%:
- Power BI Pro will be $14 (currently $9.99)
- Power BI Premium Per User will be $24 (currently $20)
Microsoft points out that Power BI hasn’t had a price increase since its introduction in 2015 – however, this is a BIG jump!
This won’t increase the price of Microsoft 365 E5, so Microsoft is reducing the gap between buying lower bundles and point products vs buying the full E5 suite. Much of Microsoft’s per-user revenue growth is linked to E5 (and Copilot), so increasing E5 adoption benefits Microsoft’s pockets.
From April 1st, 2025 Teams Phone SKUs are increasing by up to 25%:
- Teams Phone Standard will be $10 (currently $8)
- Teams Phone Frontline will be $5 (currently $4)
- Teams Phone w/ PAYG calling
Calling plans are increasing too by approx. $2 per user per month.