Changes for Microsoft Licenses Effective April 1, 2025.

Microsoft has announced important changes to Microsoft Cloud licensing. There will be a price increase for certain individual Microsoft 365 user licenses. Independently of this, Microsoft will introduce a 5% surcharge on all Microsoft 365 and Dynamics 365 licenses if they are billed monthly. To help you stay informed, we have summarized the key details here.

  #Modern Work   #Microsoft   #Microsoft 365  
10.12.2024
Lars Zängerle
+41 58 510 17 15
lars.zaengerle@umb.ch

The two announced price changes affect all customer segments (commercial, non-profit, education) and apply to new orders or renewals on or after April 1, 2025. For existing customers, the changes will only take effect when existing monthly or annual licenses will be renewed. However, you should start thinking about this now to avoid any unpleasant financial surprises. 

 

Which licenses will see price increases?

Microsoft has announced a price increase for Microsoft Teams Phone[1] and Power BI[2] licenses. The announced price increases are in USD. The official CHF prices will be available in March 2025 at the latest. However, it is expected that the surcharges will be the same percentage across all currencies.

A surcharge has been announced for the following licenses:

  • Teams Phone Standard (+25%)
  • Teams Phone Calling Plans (~10-20%)
  • Power BI Pro (+40%)
  • Power BI Premium (+20%)

Other licenses are not affected by the above price increase. This also includes the Office 365 E5 and the Microsoft 365 E5 licenses, which include both the Teams Phone Standard and the Power BI Pro license.

 

What is the 5% surcharge for annual licenses billed monthly?

Since the introduction of the NCE policy for Microsoft 365 and Dynamics 365 licenses almost 3 years ago, customers can choose between 1 month and 12-month terms. There is a 20% surcharge for 1-month licenses. This will continue to be the case.  Previously, customers could pay monthly for an annual license without a surcharge. As of April 1, 2025, or for renewals after that date, a 5% surcharge will be applied.¹


[1] https://techcommunity.microsoft.com/blog/microsoft_365blog/flexible-billing-for-microsoft-365-copilot-pricing-updates-for-annual-subscripti/4288536 

[2] https://powerbi.microsoft.com/en-us/blog/important-update-to-microsoft-power-bi-pricing/ 

Are you purchasing your Microsoft 365 licenses through UMB?

Use this form to let us know by the end of January how you would like to pay for your annual licenses in the future: https://forms.office.com/e/W9GMKDtTwA 

What optimization options do I have?

If you currently have Microsoft Teams Phone and Power Bi licenses and are affected by the price increase, you should consider switching to a Microsoft 365 E5 suite. Depending on your situation, the price difference may be negligible, and you may also benefit from additional security features.

Regarding the 5% surcharge for monthly billing, we recommend that you contact your finance department. We anticipate that most customers will switch to annual billing, so there will be no price increase.

Also check your license renewal dates. If you renew your annual licenses at the end of March 2025, you can delay the price increases.

 


[1] https://techcommunity.microsoft.com/blog/microsoft_365blog/flexible-billing-for-microsoft-365-copilot-pricing-updates-for-annual-subscripti/4288536 

[2] https://powerbi.microsoft.com/en-us/blog/important-update-to-microsoft-power-bi-pricing/ 

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