Heads Up: Microsoft 365, Teams Phone, Power BI Changes for 2025

Microsoft has announced 365 and NCE program changes that affect the pricing of several subscriptions including 365, Teams Phone, and Power BI starting April 1, 2025. 

We are quoting two articles that can be found below:

New Microsoft Billing Premium, Product Price Hikes: Five Things To Know

Certain Microsoft Subscriptions Face 5 Percent Premium; Teams Phone, Power BI Price Increases Set

Products in the following suites should see the premium, according to Microsoft:

• Microsoft 365
• Office 365
• Enterprise Mobility+Security (EMS)
• Windows 365
• Microsoft Dynamics 365 Services
• Microsoft Power Platform

Also on April 1, Microsoft will raise the price of Teams Phone by 25 percent, from $8 to $10 per user, per month for annual commitment, annual billing.

The price of Power BI Pro will grow 40 percent from $10 to $14 per user, per month for that same billing plan.

The price of Power BI Premium Per Use will grow 20 percent from $20 per user, per month to $24 per user, per month for that plan.

Customers who buy Teams Phone or Power BI through Microsoft 365 E5 or Office 365 E5 annual term subscriptions with annual billing will not see a price change, according to Microsoft.

Annual commitments, monthly billing for Teams Phone, Power BI Pro and Power BI Premium Per Use will still have the 5 percent premium, according to Microsoft. This is the first price increase to stand-alone Teams Phone offers since its launch in 2017 and first price increase to Power BI offers since the product’s launch in 2015.

Microsoft will also disallow midterm billing frequency changes for three-year offers starting April 1. Instead, customers can make billing frequency changes at renewal, according to the vendor.

Teams Phone Price Increase

The new Teams Phone price increase will come out to $120 per user, per year, according to Microsoft.

“This price update … is reflective of the increased value we have delivered to our customers to enable flexible, smart and reliable calling natively in Teams,” according to the Microsoft document for partners. “With over 20 million PSTN-enabled users, Teams Phone is trusted for its AI-powered features that enhance communication, advanced call management capabilities keeping organizations connected, and improved reliability and survivability. … Teams Phone remains competitively priced compared to other cloud calling solutions in the market.”

Some Teams Phone bundles under annual subscription, monthly billing plans will also see price increases. Those include:

• Teams Phone Standard for Frontline Workers will grow 25 percent, from $4 per user, per month to $5 per user, per month, or $60 per user, per year.
• Teams Phone with pay-as-you-go calling for U.S. users will grow about 18 percent, going from $11 per user, per month to $13 per user, per month, or $156 per user, per year.
• Teams Phone with Calling Plan in the U.S. will grow about 13 percent, going from $15 per user, per month to $17 per user, per month, or $204 per user, per year.
• Teams Phone with domestic and international calling will grow about 6 percent, from $32 per user, per month to $34 per user, per month, or $408 per user, per year.

Customers with existing Teams Phone stand-alone licenses can have the current pricing until renewal. New customers buying Teams Phone licenses after April 1 will pay under the new pricing plans.