Microsoft price updates 2025: what your business needs to know

If your company, like most businesses globally, relies on Microsoft 365 – using tools like Teams or Power BI daily, then big changes are coming to how much you might pay this year. And whether you have a team of ten or ten hundred, these updates could impact your budget if you’re not clued up! 

A go-to for most of us, tools like Outlook, OneDrive and SharePoint have been keeping our workplaces connected for years – and with tools like Copilot boosting productivity even further – Microsoft 365 is getting better and better every day.  

So, let’s break down what’s changing, why, and how you can get the tools you need without paying for the ones you don’t. 

What’s changing in Microsoft Licensing?  

Starting on 1 April, 2025, Microsoft is adjusting its pricing structure for businesses that choose to pay monthly, and those who buy standalone services like Teams Phone and Power BI. 

Here’s what you need to know… 

Monthly billing: you’ll pay around 5% more for each Microsoft 365 licence compared to paying annually.  

Standalone services: Teams Phone and Power BI will increase in price by between 25-40%. The table below shows you how Microsoft have worked this out. *

* GBP prices shown at latest exchange rate, not yet confirmed so may change.  

 Microsoft has said these shifts in pricing are necessary as they invest in AI-powered productivity, new security features and more investment in hybrid working tools like Teams and SharePoint.  

So what can you do get ready for the changes?  

We’d kick things off with a good old-fashioned audit – getting rid of any old licenses lurking in the background or payments for programmes that you just don’t need right now (don’t worry, you can always add new products in at a later date)
Then go ahead and optimise your licenses – not everyone needs full access to every tool in the Microsoft 365 toolbox. Look at downgrading and tiering your staff licenses to make sure you’re getting the most out of our subscription – plus it’s good practice to make sure your staff can only see what they need to see, rather than anything and everything.
It’s not always the best approach for every business but look at the option to pay annually rather than monthly. There’s significant savings available if you can pay up front.

These steps will help you get your Microsoft 365 house in order, but if you’re too busy to do this yourself, then teams like ours here at Ogi Pro can help – we are the ‘pros’ after all.

This is an exciting time for Microsoft 365 with innovation in AI (such as Copilot Chat), stronger security tools and more customisation coming, so staying informed and getting the most out of your subscriptions can help you keep your costs down.  

To explore your licensing options, discover cost-savings, and maximise ROI with Microsoft’s latest tools, get in touch with an Ogi Pro today – and make sure your business is ready for Microsoft’s 2025 updates and beyond.

Microsoft price updates 2025: what your business needs to know

25 February 2025

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