Price Management
      Back to home
      1. KB
      2. Administration
      3. Price Management

      Microsoft Update to Pricing April 1st 2025

      To ensure consistency across purchasing platforms (Buy Online, CSP, and MCA-E), Microsoft will introduce a standardized 5% price increase for all new and renewing monthly billing plans under annual subscriptions.

      This adjustment will take effect on April 1, 2025.

      Microsoft Announcement November 2024

      Microsoft Announcement (2) November 2024

      Key Details:

      • Subscriptions with a yearly commitment and monthly billing, created or renewed on or after April 1, 2025, will be subject to a 5% price increase.

      • The price increase for subscriptions created or renewed before 1 April 2025 will not affect those committed to that term.

      • Prices for subscriptions with annual billing will remain unchanged.

      • Customers can switch from monthly to annual billing upon renewal.

      • Customers on end-of-sale (EOS) and EOS with Conversion offers (such as Microsoft 365 E3/E5 and Office 365 E1/E3/E5 suites with Teams) will be able to modify their billing frequency at renewal.

      • Starting in April 2025, trials will continue to default to monthly billing, but partners will have the flexibility to specify billing frequency, license quantity, and term settings.

      • Partners can choose to opt out of automatic trial renewals.

      • Mid-term billing frequency changes for triennial offers will no longer be allowed. Customers will still be able to make billing frequency changes for triennial offers at renewal.

      The price increase will not affect subscriptions with annual or triennial terms billed yearly, nor monthly term subscriptions billed monthly.

      Products that will receive the increase:

      • All annual and triennial term subscriptions with monthly billing plans.

      • All segments.

      • All NCE products (not legacy).

      • End of sales products.

      Examples include but not limited to:

      • Microsoft 365 • Office 365 • Enterprise Mobility + Security • Windows 365 • Microsoft Dynamics 365 Services • Microsoft Power Platform

      The following categories are out of scope:

      • Azure Reserved Instance/Savings Plan

      • Marketplace

      • GitHub

      • AirGap

      • On-premises software

      Recommended Actions

      Assess Impact

      1. Run Cloudmore's renewal report to get subscriptions that will renew after 1 April 2025

      2. Access the Microsoft preview price list in the partner center after 1 March 2025 to review any product-specific changes

      3. Assess your current pricing strategies

      Communicate with end-user organisations

      1. Communicate the change to your end-user organisations if needed and discuss possible ways forward.

      Prepare subscriptions

      If needed, some actions may be taken to avoid affecting subscriptions with the price increase.

      1. Change subscriptions with monthly billing and yearly/triennial commitment to yearly billing.

      2. Convert trial offers which are scheduled to transition in early April before April 1 to avoid the higher monthly rate.

      3. For trials converting, where annual billing frequency is preferred over monthly billing, adjust them to convert to annual billing instead of monthly in the “Edit subscriptions” view in Cloudmore.

      4. In some cases, creating new subscriptions before the pricing change in late March 2025 may be financially beneficial, as it locks in the current rates for the following year.

        1. Create a new subscription of the product you wish to protect late March. Set the quantity to 1 and billing frequency to monthly.

        2. Remove renewal for the existing subscription and have it expire on the last day of the commitment.

        3. Once the existing subscription expires, adjust the new subscription and increase quantity to the desired amount.

        4. This will allow organizations to keep monthly billing plans while avoiding the 5% price increase for almost one more year.

        5. Note that this method may require reassigning licenses to users.

      Prepare price lists

      You will need to assess and adjust your price lists in Cloudmore to ensure your margins are protected.

      How to adjust price list pricing in Cloudmore

      Brokers managing pricing at the broker level must adjust broker-level price lists, while those handling pricing at the organization level (customer-specific pricing) must update organization-level price lists accordingly.

      Brokers may schedule price changes via the price list functionality in Cloudmore as outlined in this guide.

      Cloudmore will automatically update the price lists to reflect any changes in Microsoft's cost prices. If you are using the recommended sales price, any updates will be automatically accounted for, and you will not have to adjust any pricing manually.

      Use the Monthly Billing Check Routine

      As a best practice, we advise Cloudmore brokers to complete a monthly billing check to verify the billing items and subscription details before sending the monthly invoice to your customers. See this guide using the Monthly Billing Check routine

       

      If you have further questions of want to discuss the change, please let us know by contacting us at support@cloudmore.com.

      Useful links

      Manage NCE Subscription Renewals in Cloudmore

      Manage NCE Product Pricing in Cloudmore

      Monthly Billing Check Routine
      Further Microsoft  Pricing Information