Standardized Pricing for Microsoft Monthly Billing Plans: What It Means for You and Tips to Navigate the Change
Starting at your renewal after April 1, 2025, Microsoft will implement standardized pricing for per-user monthly billing plans for annual subscriptions. Here's what this update entails and practical tips to help your organization adjust seamlessly.
What’s Changing with Microsoft's Annual Subscriptions and Dynamics 365 Pricing?
- Pricing Increase for Monthly Billing Plans: For annual subscriptions with per-user monthly billing, the cost will now be 5% higher than the upfront annual billing option. This applies across various Microsoft products like Microsoft 365 E3/E5, Office 365 suites with Teams, Dynamics 365, and others.
- Several channels are affected: Whether you purchase from another partner, directly from Microsoft, or through Stoneridge, the impact will be consistent across all sources.
- Products in Scope: All annual subscriptions with monthly billing plans will be included. Additionally, All segments (Gov, EDU, Non-profit) and the following channels (MCA-E, CSP, Buy Online) are included for the annual subscription with monthly billing 5% price update.
Tips for Managing the Transition to Standardized Dynamics 365 Pricing
Adapting to this new Dynamics 365 pricing structure doesn’t have to disrupt your business operations. Here are some actionable strategies to minimize impact:
1. Evaluate Your Current Subscriptions
- Review your licenses: Identify which users actively utilize their licenses and consolidate them where necessary.
- Consider your payment plan: Determine whether annual upfront payment or monthly billing better suits your cash flow needs.
- Align your renewal dates: Risk having multiple invoices at random times of the year if you choose to pay annually but do not align the dates.
2. Plan for Renewals
- Start early: Discuss billing preferences with your team well before your subscription renewal date.
- Planning a New Purchase: Act now (Before April 01, 2025) to secure lower pricing for the next 12 months.
3. Leverage Partner Expertise
- Work with Stoneridge: Consult with us for tailored advice on optimizing your subscriptions. Request a free licensing assessment to help you navigate this change.
4. Explore Potential Cost Savings
- Consider annual billing: The upfront payment saves 5% compared to monthly billing. If your cash flow allows, this could be a simple way to reduce costs.
- Bundle products: Check if combining licenses (e.g., Teams, Power BI, and Office 365) into a suite like Microsoft 365 E5 provides better value.
Learn the best strategies and how to save costs for licensing going forward!
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