This will affect some users but not everyone. Here is what you need to know:
This will affect some users but not everyone. Here is what you need to know:
Microsoft has announced an upcoming price change for Microsoft 365 (M365) subscriptions, which will take effect in April 2025. This adjustment represents only the second significant price hike in over ten years, with the previous one occurring in March 2022. Before that, Microsoft had kept prices stable since the introduction of Office 365 more than a decade ago, resulting in no price increases for most of that period.
Why Is Microsoft Raising Prices?
Microsoft stated that this price change reflects the substantial value they have integrated into the platform over the years. With improvements in security features, productivity tools, and collaboration innovations, Microsoft 365 has significantly transformed to meet the requirements of contemporary businesses and individuals.
Ongoing updates and new features continue to be introduced, ensuring users gain from advanced technology while enhancing workflows and collaboration. This forthcoming price change also allows Microsoft to offer even more innovations in the future, reinforcing its role as a leader in productivity and business solutions.
How This Might Affect Your Accounts:
The Microsoft 365 price increase will apply to some existing subscribers upon their next renewal starting in April 2025, meaning that when your current subscription term ends and it's time to renew, you will see the new pricing reflected in your billing. If this pricing is going to affect our clients, we will be reaching out to prepare them for the change. Microsoft has noted that the specific changes may vary by market, indicating that the price adjustments could differ depending on the region or country you are in, potentially due to local economic factors or currency fluctuations. While we are still awaiting further details on exact pricing and plan adjustments, which means that the precise amount of the increase and any changes to the subscription plans themselves have not yet been fully disclosed, Cloud Cover is closely monitoring the situation. We are actively keeping an eye on any announcements or updates from Microsoft and will keep you updated as more information becomes available, ensuring that you are informed of any developments as soon as they are released.
Cloud Cover is here for you.
- We can help you understand whether your accounts will be impacted.
- What the impact will be.
- How we can maximize your Microsoft 365 account's value
Please let us know if you have any questions about the upcoming changes.
Frequently Asked Questions: Microsoft 365 Pricing
What exactly is changing in Microsoft 365 pricing in April 2025?
Starting April 1, 2025, Microsoft is increasing the price for annual-term subscriptions that are billed monthly - a ~5% premium over the previous monthly-billing rate.
Who will be affected by this price increase?
Subscribers on an annual plan but paying monthly will face the increase at their next renewal. Annual-upfront or month-to-month billing customers typically won’t see a change.
What other Microsoft services see price changes along with Microsoft 365?
Along with Microsoft 365, license-based products such as Microsoft Teams Phone and Power BI are also subject to updated pricing from April 1, 2025.
Why is Microsoft raising the price now?
Microsoft says the increase reflects enhancements, added features, and growing value in the platform - including security, collaboration tools, and continuous innovation over time.
Can customers avoid the increased price?
Yes. Choosing to pay annually upfront (instead of monthly instalments) will avoid the 5% premium.