Microsoft has announced significant price increases for 2025, which will directly impact organizations’ IT budgets. Frequently used products such as Power BI, Teams Phone, and monthly licenses will become more expensive. In this article, we will discuss the key price hikes and provide practical tips for managing these costs.
Price increases in detail
- Power BI: Up to 40% price increase (effective April 1, 2025)
Starting April 1, 2025, Power BI license prices will increase significantly:
- Power BI Pro: increases from $10 to $14 per user per month (+40%).
- Power BI Premium Per User (PPU): increases from $20 to $24 per user per month (+20%).
Customers with Power BI through Microsoft 365 E5 or Office 365 E5 will remain unaffected.
- Teams phone: Up to 25% more expensive (effective April 1, 2025)
The prices for Teams Phone subscriptions will also rise, starting April 1, 2025:
- Teams Phone Standard: increases from $8 to $10 per user per month (+25%).
- Teams Phone Frontline: increases from $4 to $5 per user per month (+25%).
Additionally, calling plans will increase by about $2 per user per month.
- 5% increase for monthly licenses (effective April 1, 2025)
For customers who choose monthly payments within annual subscriptions, a 5% price increase will apply, starting April 1, 2025. This applies to:
- Microsoft 365 and Office 365
- Dynamics 365
- Windows 365
- Power Platform
- Enterprise Mobility + Security
Products like Azure Reserved Instances, Azure Savings Plans, Azure Marketplace, and GitHub are not subject to this change.
How to minimize the impact of the 2025 price increases
Microsoft’s announced price increases require a strategic approach to minimize the impact on your IT budgets. Here are some concrete actions you can take:
- Consider annual billing: Avoid the additional 5% cost for monthly payments by opting for annual billing. This can yield significant savings in the long term.
- Define user profiles: Analyze the usage of Microsoft 365 and Office 365 subscriptions within your organization. By defining user profiles based on actual usage, you can avoid over-licensing and implement more appropriately aligned subscriptions.
- Have an independent license audit conducted: A specialized consultant can thoroughly analyze your license usage, uncover inefficiencies, and ensure that you only pay for what you actually use. This helps eliminate unused or duplicate licenses and prepares you for the rising costs.
- Negotiate prices: Especially with large numbers of licenses, it pays off to negotiate prices and terms with Microsoft or your partner.
- Seek advice from an independent specialist: The Microsoft licensing landscape is complex. A specialist can help you choose the right license combination and avoid hidden costs.
- Evaluate temporary promotions carefully: While discounts, such as the 15% off Microsoft 365 E5 subscriptions in 2025, may seem appealing, it’s important to evaluate these offers carefully. An independent specialist can help determine whether these promotions truly align with your specific needs and whether they provide the best solution for your organization.
- Timely action is essential: The announced price increases will take effect on April 1, 2025. By acting now, you can manage costs effectively and prevent these increases from having a larger impact on your budget.
Your partner in license and contract optimization
At BeSharp Experts, we understand the challenges these changes bring. We can help you optimize your costs and develop a strategy that meets your needs. Contact us for a no-obligation conversation and discover how we can support you during this period of price increases.