This is an update on the Microsoft 365 Price Increases (and supersedes our previous article).
From 1st April 2025, Microsoft is increasing the cost of Microsoft 365 licences by 5%. If you rely on Microsoft tools for your daily operations, this is a change worth planning for. While price adjustments are never welcome, this increase doesn’t have to be a burden. With a strategic approach, businesses can mitigate the impact and even find ways to optimise their licensing spend.
What’s Changing?
Microsoft is implementing a 5% price increase on all Microsoft 365 licences, including:
- Microsoft 365 Business Standard & Premium
- Office 365
- Enterprise Mobility + Security
- Windows 365
- Dynamics 365
- Power Platform (including Power BI Pro & Premium Per User)
- Teams Phone Standard
This change affects both annual and monthly billing structures. If you are on a monthly-billed annual subscription, your cost will increase, making annual commitments more attractive for cost-conscious businesses.
Below is a breakdown of what we expect these prices to look like, for two of the most common Microsoft 365 subscriptions:
| Product | Annual Pricing Before April 1st | Monthly Pricing Before April 1st | Annual Pricing After April 1st | Monthly Pricing After April 1st |
| M365 Business Standard | £10.30 | £12.36 | £10.82 | £12.98 |
| M365 Business Premium | £18.10 | £21.72 | £19.01 | £22.81 |
What This Means for Your Business
This change may have an impact on IT budgets, particularly for SMEs relying on flexible, monthly billing. However, businesses that take proactive steps can reduce unnecessary costs and ensure they are on the most cost-effective licensing model.
Key Considerations:
- Annual Billing Can Save You Money – Moving from monthly billing to an annual commitment before April will lock in current rates and help avoid unnecessary increases.
- Review & Optimise Your Licences – Many businesses have unused or underutilised licences. A quick audit can help you remove any redundant costs.
- Consider Package Adjustments – If you’re over-provisioned, now may be the time to realign your licences to match real-world business needs.
A Reassuring Perspective
While price increases can be unsettling, they don’t have to be disruptive. Mark Williams, Senior Client Relations Manager at B2B IT Services, offers this insight:
“We understand that any price increase can feel like another challenge, but it doesn’t have to be. Our team is here to help you review your licences, adjust your package if needed, and ensure you’re getting the best value. Whether it’s switching to annual billing or optimising your existing setup, we’ll guide you through it.”
Next Steps
If you’d like to discuss how these changes will impact your business, or if you need guidance on adjusting your Microsoft 365 package, get in touch with us today. We’ll help you navigate these updates and keep your IT budget under control.
