More flexible billing for Microsoft 365 Copilot

In response to customer and partner feedback for more flexible payment options, Microsoft will introduce a new monthly billing plan for annual subscriptions of Microsoft 365 Copilot, Microsoft 365 Copilot for Sales and Microsoft 365 Copilot for Service. However, this new monthly billing option for annual subscriptions will be 5% more expensive.

Standardization of the billing structure & price update

For all products with monthly billing plans per user for annual subscriptions (ergo annual commitment with monthly billing), Microsoft is introducing a price update.

IMPORTANT: Price update for Microsoft Teams Phone and Power BI

Microsoft will also adjust the prices for Microsoft Teams Phone Standard, Power BI Pro and Power BI Premium Per User from April 1, 2025. This is the first price increase for both standalone products since the launch of Teams Phone in 2017 and Power BI in 2015 and reflects the collective value that has been added to Teams Phone and Power BI over the years. These pricing updates will be implemented as follows for new and existing customers at renewal:

• Teams Phone Standard licenses will cost $10 per user per month (previously $8 + 20%).
• Power BI Pro licenses will cost $14 per user per month (previously $10 + 40%).
• Power BI Premium Per User licenses will cost $24 per user per month (previously $20 + 20%).

There are currently no price changes for customers purchasing Power BI Pro and Teams Phone licenses through the Microsoft 365 and Office 365 E5 suites. The price update applies to all business customers. The monthly billing plan for annual subscriptions will be priced an additional 5% higher and there may be slight price variances due to exchange rate fluctuations, local pricing policies and rounding rules.