Microsoft New Price Updates 2025

Introduction

If you have been following licensing updates from Microsoft, then you would know that some big changes come in 2025. Regardless of whether your organisation has a few dozen or several thousand employees, these are changes to pay close attention to since they could impact your budget more than you expect.

In this blog, we’ll unpack what’s changing, why Microsoft is adjusting their pricing and licensing structure, and what steps you can take to ensure your business stays ahead of the curve.

Microsoft Licensing Basics: What Are Your Options?

Perpetual Licensing

• One-time purchase that gives you lifetime access to the software.
• Common for products like Office 2021 and Windows Server.

Subscription Licensing (Microsoft 365)

• Recurring subscription with access to the latest features and updates.
• Includes popular plans like Microsoft 365 Business Premium and Office 365 E3.

Volume Licensing

• Tailored for organisations with many users or devices.
• Offers flexibility to manage large-scale licensing needs.

What’s Changing in Microsoft’s Pricing?

Starting in April 2025, Microsoft will be introducing several key updates to their licensing structure and pricing models. These changes will primarily impact small to mid-sized businesses purchasing through enterprise agreements or cloud solution providers (CSPs).

New Microsoft 365 Business Plans Pricing (GBP)

Why the Increase?

• AI-Powered Features: Microsoft is integrating advanced AI tools like Copilot to help drive productivity and collaboration forward.
• Security Investments: Enhanced security features to help businesses combat rising cyber threats.
• Hybrid Work Enhancements: Upgrades to tools like Teams and SharePoint to support flexible work arrangements.

How Will This Impact Your Business?

Small to Mid-Sized Businesses

Organisations with fewer than 2,400 users will face the biggest changes. If you’re using a CSP model, you’ll need to re-evaluate your licensing agreements to ensure you’re getting the best value.

Larger Enterprises

For companies with over 2,400 users, Microsoft is encouraging a shift to their Microsoft Customer Agreement for Enterprise (MCA-E), a streamlined version of the traditional enterprise agreement. This means less involvement from resellers and more direct engagement with Microsoft.

Tips to Manage Microsoft Licensing Costs

Conduct a Licensing Audit

Take stock of your current licenses to ensure you’re not overpaying for unused or unnecessary subscriptions.

Optimise Your Plans

Not all employees need premium plans. Consider downgrading some users to more basic subscriptions.

Explore New Licensing Options

Look into Frontline Worker plans or Microsoft 365 E5 promotions to take advantage of new offers.

Work with a Trusted Partner

A Microsoft Cloud Partner can help you navigate the complexities of licensing changes and ensure you’re getting the best deals.

What’s Next for Microsoft Licensing?

Microsoft’s licensing models will continue to evolve, and it’s important to stay informed to avoid surprises. Key areas to watch include:

• AI and Automation: Expect further AI integrations across Microsoft products.
• Security Enhancements: Cybersecurity will remain a top priority for Microsoft.
• Flexible Licensing: More options for hybrid work environments are likely on the horizon.

Conclusion

While these licensing changes might seem overwhelming, there are ways to manage the impact on your IT budget. By staying proactive, auditing your current licenses, and working with a trusted partner, you can navigate these changes without significant disruptions.

Need Help Navigating Microsoft Licensing? Reach out to our team to learn more about cost-saving strategies and ensure your business is prepared for Microsoft’s 2025 updates!