Microsoft Announces Pricing Increase

Changes to Annual Paid Monthly SKUs

Microsoft has recently announced a significant change in their pricing structure that will affect all annual paid monthly SKUs. Effective immediately, there will be a 5% increase in the pricing for these SKUs.

In addition to this general increase, Microsoft has identified a few select SKUs that will see an even higher price hike beyond the 5% increase. This decision comes as part of their ongoing efforts to adjust their pricing to better reflect the value and enhancements included in their offerings.

SKU overview:

While all SKUs have a 5% pricing increase, here is a breakdown of how this will look for their popular Microsoft 365 SKUs:

• Business Basic $6.00 > $6.30
• Business Standard $12.50 > $13.13
• Business Premium $22.00 > $23.10
• Apps for Business $8.25 > $8.66
• Teams Phone Standard > $15.00 > $17.85
• Power BI Pro $10 > $14.70
• Power BI Premium Per User $20 > $25.20

When does this happen?

While the change took place as of April 1^st, 2025, individual tenant increases will only take place after the license expires and require a renewal. 

Alternative options

This pricing increase only applies to customers paying the annual subscriptions paid monthly.  To completely circumvent the pricing increase, 365 subscribers can pay for the entire license annually. 

Additional increases

Barracuda Networks, a 3^rd party backup and security platform for Microsoft 365, also announced a pricing increase. 

• Email Complete will increase by 10%
• Advanced Email Security will increase by 3.5%
• Archiving will increase by 3.5%

This pricing will take effect in June of 2025. 

How Can We Help?

If you have any questions, please feel free to contact James Haywood, Senior Project Coordinator, at jhaywood@intradatech.com.