Microsoft is set to implement several notable changes to its licensing and pricing structures in 2025. We at Law 365, as a registered Microsoft Partner, like to keep on top of the changes in licensing costs.
The price changes often suggest trends within the industry or customer need. This year, it's all about moving companies towards E5 and getting everyone AI ready!
Here's a detailed overview:
Price Adjustments:
- Cloud Subscriptions: Effective February 1, 2025, Microsoft will decrease cloud service prices in the UK by approximately 5% to 6%. This adjustment aims to align UK pricing with global levels.
- AI-Integrated Licences: Starting April 1, 2025, licences incorporating new AI features, will increase by up to 40%. This will include Copilot Chat which will be included in Word without requiring a separate Copilot licence, enhancing user productivity without additional costs.
- Monthly Billing Surcharge (for annual plans): From April 1, 2025, a 5% surcharge will be applied to monthly billing plans for annual subscriptions. This change encourages customers to opt for annual billing to achieve cost savings. Note: that this will not affect the monthly subscription, which incurs a 20% uplift, this shall remain the same.
Product-Specific Changes:
- Microsoft 365 E5: Microsoft is promoting the E5 plan, offering a 15% discount starting January 1, 2025. This promotion is expected to last until 30th June.
- Microsoft Copilot licence: This shall have a 15% discount for new subscriptions. This is expected to last until
- Power BI Pro: A price increase is anticipated on April 1, 2025. While specific percentages are not detailed, customers should prepare for higher costs associated with this service which could be up to 40%.
Microsoft Teams Licensing:
As of April 1, 2024, enterprise plans with Microsoft 365 and Office 365 suites no longer include Teams for new subscribers outside the European Economic Area (EEA) and Switzerland. Existing subscribers retain access, while new customers must purchase Teams separately.
Keep on top of changes
These changes reflect Microsoft's strategic shift towards AI integration and a modular approach to its services, aiming to provide enhanced value and flexibility to its customers. Microsoft's 2025 pricing and licensing updates could have significant legal and financial implications for your organisation and customers.
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