Let us help your Business Optimise Your 2025 Microsoft Costs and Plans
On December the 3rd 2024, Microsoft announced local currency price adjustments for its commercial cloud services, reflecting changes in exchange rates and ensuring global price parity
This update underscores the importance of regularly reviewing your licences to ensure you’re on the best plans and optimising costs.
Time to Review Your Microsoft Licenses
It’s crucial to stay informed about the upcoming changes to Microsoft license pricing. Here’s what you need to know from Microsoft
What Are the Price Adjustments for Microsoft’s Commercial Cloud?
Effective from February 1st 2025, Microsoft will adjust prices for its commercial cloud services in several local currencies, including British Pounds £ (GBP) and more.
These adjustments are part of a semi-annual review process aimed at aligning local prices with the US dollar, providing greater transparency and predictability for customers globally
But its not all Bad News for UK businesses
- February 1, 2025, cloud services in the UK will see a decrease of 5% to 6%.
- Any UK businesses renewals after February 2025 will benefit from the new lower rates.
- If your renewal date falls before April 1, you won’t see the price hike until your next renewal cycle.
- March 2025 renewal means no price jump until March 2026.
How to Secure Lower Costs
- Prepaid Annual: Secure current pricing by paying upfront if your budget allows.
- Multi-Year Commitment: Consider a 3-year commitment to shield yourself from potential future price hikes.
Price Adjustments
- Effective from February 1, 2025, Microsoft will adjust prices for several local currencies, including GBP.
- UK cloud services will see a decrease of 5% to 6%.
Annual Plan Price Increase
- Starting April 1, 2025, there will be a 5% increase for annual NCE plans paid monthly. Opting for the prepaid annual option can help you avoid this 5% increase.
Teams Phone Price Changes
- These increases primarily effect organisations on standalone Teams Phone subscriptions.
- Higher-tier suites like Office 365 E5 or Microsoft 365 E5 there is no new price change.
- Teams Phone Standard will increase from $8 to $10 per user per month.
- Teams Phone with Calling Plan will rise from $15 to $17 per user per month.
Microsoft CoPilot
- Microsoft is introducing a new annual plan – paid monthly—giving you more flexibility
- Pricing for month-to-month on an annual commitment is 5% higher than the annual prepaid rate.
Free CoPilot Chat
- January 15, 2025, Microsoft introduced a free version of CoPilot Chat for Microsoft 365 subscriptions.This means you can use CoPilot Chat at no additional cost for general queries. However, for certain specific queries, such as those involving SharePoint-based questions, a pay-as-you-go consumption model will apply.
This allows you to only pay for the advanced features you use, making it a flexible and cost-effective option.
The Difference Between Free & Paid Tiers
Paid CoPilot
- Includes SharePoint Advanced Management This feature, previously available as a $3 add-on, is now included in the paid tier. It provides robust tools to govern and secure your data, which is crucial when enabling AI features that might expose sensitive information to end users.
- SharePoint Advanced Management you can manage content sprawl, prevent oversharing, and control content access, ensuring your organization’s data remains secure and compliant.
Free CoPilot Chat
- Basic AI-Driven Tasks The free version of CoPilot Chat is great for handling everyday AI-driven tasks, such as drafting emails, summarizing documents, and answering general queries.
- Consumption Charges While the basic features are free, certain advanced queries, like those involving SharePoint-based questions, will incur pay-as-you-go consumption charges. This allows you to only pay for the more complex tasks you need, making it a flexible option for varying usage levels.
CoPilot Discount 15%
- Minimum 10 seats.
- Annual commitments only (monthly or prepaid).
Business Premium Offer
- 15% off for new subscribers.
- Act before April to avoid a 5% price increase, giving you a 20% discount.
- Advice – Upgrade from Business Standard to Business Premium for advanced security.
Office 365 E3 & E5 Discounts
- Built For Organizations exceeding Business Premium’s 300-seat limit or needing advanced security.
- Available only until June 2025
Which Microsoft Cloud Products Are Affected by These Adjustments?
- Microsoft 365
- Azure Services
- Dynamics 365
- Power Platform
Key Points for Current and New Customers
- Current Contracts: Existing contracts will continue at their current rates until renewal. Upon renewal, the new adjusted prices will apply.
- New Purchases: Any new purchases made after February 1, 2025, will reflect the adjusted prices.
Why Review Your Microsoft Cloud Licences & Cloud Service Plans Now?
With these upcoming changes, now is the perfect time to review your current licences and cloud service plans. Here’s why:
- Cost Optimisation: Ensure you’re not overpaying for services you don’t need. Our experts at Speedster IT can help you identify areas where you can cut costs without compromising on functionality.
- Best Fit Plans: Technology and business needs evolve. We can assess whether your current plans still meet your requirements or if there are better options available.
- Stay Compliant: Avoid potential compliance issues by ensuring your licences are up-to-date and aligned with your usage.
How Speedster IT Can Help
At Speedster IT, we specialize in helping businesses navigate the complexities of software licensing and cloud services. Our team of experts can:
- Conduct a Comprehensive Review: We’ll analyze your current licences and usage to identify opportunities for savings.
- Recommend Optimal Plans: Based on your business needs, we’ll suggest the best plans that offer the most value.
- Transitional Changes: We’ll assist with the transition to new plans, ensuring minimal disruption to your operations.
Get Started Today
If you are seeking advice on the best time to make purchases to take advantage of the new pricing. For example, purchasing Microsoft 365 E5 licences could result in significant savings. Don’t wait until the price adjustments take effect.
Contact Speedster IT today to schedule a review of your licences and start optimising your costs. Our team is ready to help you make the most of your IT investments.
Give us a call 0204 511 9111