Microsoft has announced changes to its pricing and billing structure, effective April 1, 2025. These changes are designed to standardize pricing across all purchasing platforms and provide greater flexibility for customers.
Key Changes:
- Price Increase on Monthly Billing
Customers who choose monthly billing will see a price increase. This applies to all Microsoft 365, Office 365, Power Platform, Dynamics 365, and other online services. Additionally, there are additional price adjustments for Microsoft Teams Phone and Power BI licenses. The amount of the increase will depend on the types of licenses. - Annual Upfront Billing Remains Unchanged
Customers who opt for annual upfront billing will receive the current pricing without any increase.
Entra P2 Licensing Policy Change
Additionally, Microsoft has updated its licensing policy for Entra P2 (formerly Azure AD Premium P2). Going forward, a P2 license will be required for each Office 365 user, rather than just one per tenant. Microsoft has indicated that audits for license compliance may begin soon. Clients currently relying on a single P2 license across their environment should start planning for this change to remain compliant.
Recommendations:
- Consider Switching to Annual Upfront Billing
To avoid the increase, you may want to switch to annual upfront billing. - Plan for Budget Adjustments
If you choose to remain on monthly billing, plan for the 5% increase in your budget. - Review Your Security Licensing
If you’re using Entra P2, talk to us to avoid future audit issues.
We understand that pricing and licensing changes will impact your budget and planning. Our team is here to help you navigate these updates and determine the best strategy for your business. If you have any questions or would like help reviewing your Microsoft 365 environment, please don’t hesitate to reach out.