Change is coming to Microsoft 365 in 2025, and for businesses relying on Microsoft’s cloud services, these updates could impact IT budgets. But don’t panic—Crest IT is here to simplify what’s happening, break down the options, and help you lock in savings before the changes hit.
What’s Changing?
- Cloud Price Reduction (Effective 1st February 2025)
Microsoft is reducing its UK cloud service prices by 5-6% as part of a global pricing adjustment. This decrease will apply from your next renewal after 1st February 2025. - Price Increase for Monthly Plans (Starting 1st April 2025)
There’s a 5% price increase for annual commitment plans paid monthly. If you’re paying annually upfront, your pricing won’t change.
What Are Your Pricing Options?
Microsoft offer three payment structures:
- Monthly Plan: 20% higher than the standard price (no changes here).
- Annual Commitment, Paid Monthly: Now comes with a 5% price increase.
- Annual Commitment, Paid Upfront: Keeps the standard rate (no increases).
Tip: Paying upfront for the year is the most cost-effective option going forward.
How These Changes Impact Your Business
Let’s break it down based on when your renewal happens:
- Renewing Before 1st February 2025: No changes to your pricing.
- Renewing Between February and April 2025: You’ll benefit from the price reduction without the April increase. Great opportunity to save.
- Renewing After 1st April 2025: Both changes apply. Consider early renewal to avoid higher costs.
Why Is Microsoft Making These Changes?
Microsoft says it’s all about increasing value and simplifying billing:
- More Features: Expect new, AI-driven tools like Microsoft Copilot to improve automation and productivity.
- Improved Security: Continued investment in strengthening 365 applications.
- Simplified Payment Options: More flexibility for businesses of all sizes.
Crest IT’s Recommendations to Stay Ahead
Here’s what we suggest to protect your budget:
Pay annually upfront before renewal to lock in lower pricing. Evaluate your current licenses to eliminate unused or unnecessary subscriptions. Consider a free licensing review with our experts to explore all available options.
Don’t Wait—Let Crest IT Help You Save
We know licensing changes can feel complicated. Our team is ready to simplify the process and help you find the best pricing strategy for your business.
Book a free licensing review with us today, and we’ll ensure you’re set up correctly for your business in 2025.