Important changes to Microsoft 365 pricing

Overview of Changes - • From 1st February 2025, commercial customers have received a 5% reduction in Microsoft 365 pricing, this is due to currency exchange rate adjustments. • From 1st April 2025, paying annual commitment subscriptions on a monthly basis will increase by 5%. This will apply to new and renewed subscriptions from 1st April. To maintain current pricing, you have the option to switch to an annual upfront payment plan at your renewal date.

 
Microsoft 365 Pricing Reduction for UK Customers
On 1st February 2025, Microsoft implemented reduced pricing for Commercial Cloud services to better align with the British Pound (GBP).

This adjustment means that since 1st Feb, organisations purchasing new or renewing existing Microsoft 365 subscriptions (both monthly and annual) will enjoy a 5% to 6% reduction in cost.

What's driving this change?
Microsoft sets its global pricing in US Dollars and conducts exchange rate reviews every 6 months. The recent strengthening of the British Pound has enabled Microsoft to offer UK customers this welcome reduction in costs.

Key points about the Microsoft 365 pricing decrease in the UK:
•    Reduction rate: 5-6%
•    Start date: 1st February 2025
•    Scope: Covers both monthly and annual subscriptions
•    Timeline: Price adjustments apply to agreement renewals from 1st Feb 2025. Current pricing stays unchanged until your renewal date.
•    Exceptions: Microsoft Teams Phone licenses will see an increase of 10-25% for renewals (monthly and annual) starting 1st April 2025.

Pricing Changes for Monthly Payments on Annual Subscriptions
Starting 1st April 2025, Microsoft 365 will introduce a 5% price increase for monthly payment plans on annual commitments. This means subscribers paying monthly for annual subscriptions will face higher costs upon renewal.

Will this affect my current subscriptions?
Your existing subscriptions remain unchanged. The new pricing structure begins on 1st April 2025, after which any new or renewed annual subscriptions will cost more when paid monthly.

Upon renewal, customers currently paying monthly for annual subscriptions can maintain their existing rates by switching to annual billing with upfront payment for their subscription.

Key information about the monthly payment increase:
•    Increase rate: 5%
•    Start date: 1st April 2025
•    Scope: Affects monthly payment plans with annual commitment.
•    Timeline: Changes apply to agreement renewals from 1st April 2025. Current pricing remains until your renewal date.
•    Exceptions: Increase doesn't apply to annual subscriptions paid upfront or higher-rate monthly commitment subscriptions. The changes only affect annual commitment subscriptions paid monthly.

If you have any questions about Microsoft 365 licensing or wish to discuss your current payment arrangements, please don't hesitate to reach out to us or submit your enquiry via our contact form on our website.