2025 Microsoft 365 Licensing Changes

From 1st April 2025, there are some important changes coming to Microsoft 365 subscriptions. In this blog, we break down what those changes are and what they might mean for your business.

So what are the major changes?

• Monthly Billing for Copilot.
  • Copilot is finally available for monthly payments on annual terms for Microsoft 365 Copilot. This is 5% more expensive than the annual bill.

• 5% Price Increase for M365 Licensing
  • Effective from 1st April 2025.
  • Monthly billing plans on annual terms will increase by 5%
  • Products affected include Microsoft and Office 365, Enterprise Mobility + Security, Windows 365, Dynamics, and Power Platform.

For most of our users, this means your bill is likely to rise at your next renewal after 1st April 2025. Microsoft say these changes are designed to offer greater flexibility and reflect the continuous enhancements in Microsoft's services.