Microsoft has announced some changes to its pricing and billing for several key products, including Microsoft 365 Copilot, Teams Phone, and annual subscriptions. Let's break down what you need to know.
More Flexibility for Copilot
Good news for those interested in Microsoft 365 Copilot! As of December 1, 2024, you now have the option to pay for your annual Copilot subscription monthly. This means you can spread out the cost over the year instead of paying it all upfront.
This applies to
- Microsoft 365 Copilot
- Microsoft 365 Copilot for Sales
- Microsoft 365 Copilot for Service.
Keep in mind, though, that choosing the monthly billing option for your annual Copilot subscription will cost you 5% more than paying annually. The annual price itself remains the same. This new monthly option is available whether you buy online, through a Cloud Solution Provider (CSP), or via a Microsoft Customer Agreement for Enterprise (MCA-E).
Standardizing Monthly Billing (Coming Soon)
Beyond Copilot, Microsoft is also streamlining how they bill monthly for annual subscriptions. Starting April 1, 2025, the monthly cost for all new and renewing annual subscriptions will be standardized.
This includes
- Microsoft 365,
- Office 365,
- Enterprise Mobility + Security,
- Windows 365,
- Dynamics 365 Services,
- Power Platform,
- And other online services.
This standardization means a 5% price increase on the monthly billing plans for these annual subscriptions. This change will apply across all purchasing platforms (Buy Online, CSP, and MCA-E).
Here's what you should consider:
To avoid this additional cost and simplify your billing process, switching to an annual billing plan is highly recommended. Lock in your current pricing and avoid the 5% premium by switching to annual billing before the change takes effect on April 1, 2025. Enjoy the convenience of a single annual transaction and streamline your payments.
Teams Phone Price Update (Coming Soon):
Teams Phone is also seeing a price update. Since its launch in 2017, Teams Phone has received numerous updates and improvements. To reflect this added value, the annual billing price for Teams Phone will be adjusted starting April 1, 2025. This is the first price change for standalone Teams Phone plans since they were introduced.
Prices for other Teams Phone plans, including those for frontline workers and bundles with calling plans, will also be updated. However, if you get Teams Phone through a Microsoft 365 E5 or Office 365 E5 annual subscription with annual billing, there are no immediate price changes. Just like other annual subscriptions, the monthly billing option for Teams Phone will also include the 5% increase.
Here's what you should consider:
Just like the other subscriptions, switching to an annual billing plan for Teams Phone before April 1, 2025, will help you lock in the current pricing and avoid the 5% increase associated with monthly billing.
Key Dates to Remember:
- December 1, 2024: Monthly billing option became available for Microsoft 365 Copilot annual subscriptions.
- April 1, 2025: Standardized monthly billing pricing for all annual subscriptions and updated pricing for Teams Phone.
Need help navigating these changes?
As a Microsoft Silver Partner, Interlock IT is here to assist you. We can help you understand the implications of these updates for your business and find the best solutions for your needs.
Contact us today to discuss your options.
