What To Know and How to Prepare

Effective Date: April 1, 2025

As your trusted technology partner, it is a priority to keep you aware of important information that pertains to your services and solutions. That’s why today we’re covering the upcoming updates to Microsoft’s CSP licensing billing structure and pricing. These changes are aimed at making billing more straightforward and adjusting prices to better match the current market. Here’s what you need to know and how it might affect your subscriptions.

Standardization of Billing Structure

Starting April 1, 2025, Microsoft will standardize monthly billing plans for annual and triennial term subscriptions across BuyOnline, CSP, and MCA-E. This standardization includes a 5% price update. Here are the key points:

• Monthly Billing Plans: Monthly billing for annual and triennial term subscriptions will see a 5% price uplift compared to the annual billing (upfront payment) option. This change aims to provide a more consistent and predictable billing experience. You will have the flexibility to switch from monthly to annual billing at your renewal date, allowing you to choose the billing cycle that best fits your financial planning and budgeting needs.
• Affected Products: Products affected by this change include Microsoft 365, Office 365, Enterprise Mobility + Security, Windows 365, Microsoft Dynamics 365 Services, and Microsoft Power Platform, among others.
• Excluded Products: Azure RI/Savings Plan, Marketplace, GitHub, AirGap, and on-premises software.
• Existing Subscriptions: Customers with existing annual subscriptions with monthly billing will see the pricing change starting at their next renewal date after April 1, 2025

Pricing Update for Teams Phone and Power BI

As part of our commitment to keeping you informed, we also want to share some important updates from Microsoft regarding the pricing of Teams Phone and Power BI licenses. These changes are designed to reflect the evolving value and capabilities of these services.

Effective Date: These pricing updates will take effect on April 1, 2025, and apply to all new and renewing CSP subscriptions. Annual/Monthly subscriptions will be priced 5% higher.

Teams Phone Pricing Update

• Teams Phone Standard: The price for annual subscriptions of Teams Phone Standard will be updated to $120. This change reflects continuous improvements and added features to the Teams Phone service. Other licenses that include Teams Phone Standard (e.g., Teams Phone with Calling Plan) will also reflect this price increase.

Power BI Pricing Update

• Power BI Pro: The price for annual subscriptions of Power BI Pro will increase to $168. This update reflects the added capabilities and continuous enhancements in Power BI Pro.
  • Note: No pricing changes will apply to customers who purchase Power BI through Microsoft 365 E5 or Office 365 E5 annual term subscriptions with annual billing.

• Power BI Premium Per User (PPU): The price for annual subscriptions will be updated to $288, ensuring you continue to receive premium features like advanced analytics and AI-driven insights.

Navigating These Changes Seamlessly

To ensure a smooth navigation of these new updates and what they mean for your business, we recommend the following steps:

1. Review the Changes: Familiarize yourself with the detailed information on the products and services affected by the billing and pricing updates. Understanding the scope of these changes is crucial for effective planning.
2. Plan: The changes will apply at your next renewal. If you have monthly Power BI or Teams Phone licenses, the new pricing will take effect on April 1, 2025. Annual subscribers will see changes at their annual renewal.
3. Update Your Billing Preferences: If you are currently on a monthly billing plan, consider switching to annual billing at your renewal date to save the 5% fee. This option can help optimize your costs and align with your financial planning.
4. Contact Us: If you have any questions or concerns about how these changes will impact your subscriptions, please reach out to us. We are here to help you navigate these updates and ensure a seamless transition.
5. Stay Informed: Keep an eye on any additional updates or announcements from Microsoft. We will continue to provide you with the latest information to help you stay informed and prepared.

Additional Insights

Azure Pricing: Pricing for Azure services through CSP and the Microsoft Customer Agreement will be aligned globally in US dollars, while services purchased through other channels will be priced in local currencies based on exchange rates.

O365/M365 Three-Year Offers: Updates regarding three-year offers for O365/M365 are forthcoming, and we will share more details as they become available.

Nonprofits: As with other segments (Gov, EDU, Non-profit), these updates will apply to nonprofit customers as well.

EA Customers: Customers purchasing cloud-only services via Enterprise Agreement (EA) will be migrated to the MCA-E or MCA through CSP, as EA for new cloud-only purchases has been retired.

Key Changes and Highlights:

1. Price Increase: A 5% increase for monthly billing on annual/triennial subscriptions starting April 1, 2025.
2. Teams Phone & Power BI Pricing: Updated prices for Teams Phone Standard ($120) and Power BI Pro ($168) and Power BI Premium Per User ($288).
3. Renewal Impact: Price adjustments will take effect for monthly subscriptions on April 1, 2025, and for annual subscriptions at their renewal date.
4. Actionable Steps: Consider switching to annual billing at renewal to avoid the price increase.

If you have any questions or need assistance navigating these changes, please don’t hesitate to reach out.

We are here to ensure a smooth transition and support you in managing these updates effectively.

Thank you for your continued partnership with Managed Solution.