Flexible Billing for Microsoft 365 Copilot, Pricing Updates for Annual Subscriptions & Teams Phone (TECHCOMMUNITY.MICROSOFT.COM, 2024)

Metadata

• Author: TECHCOMMUNITY.MICROSOFT.COM
• Full Title: Flexible Billing for Microsoft 365 Copilot, Pricing Updates for Annual Subscriptions & Teams Phone
• Category: #articles
• Document Note: Microsoft is introducing a monthly billing option for Microsoft 365 Copilot annual subscriptions starting December 1, 2024. Additionally, they will standardize monthly billing prices for annual subscriptions and update pricing for Teams Phone on April 1, 2025. The new monthly billing for annual subscriptions will be 5% higher than the annual upfront payment.
• Document Tags: commercial microsoft
• Summary: Microsoft is introducing a monthly billing option for Microsoft 365 Copilot annual subscriptions starting December 1, 2024. Additionally, they will standardize monthly billing prices for annual subscriptions and update pricing for Teams Phone on April 1, 2025. The new monthly billing for annual subscriptions will be 5% higher than the annual upfront payment.
• URL: https://techcommunity.microsoft.com/blog/microsoft_365blog/flexible-billing-for-microsoft-365-copilot-pricing-updates-for-annual-subscripti/4288536

Highlights

• Flexible billing for Microsoft 365 Copilot (View Highlight)
• Today, we are announcing several commercial licensing and pricing updates. These updates include introducing a new monthly billing plan for Microsoft 365 Copilot annual term subscriptions, standardizing the billing structure for all monthly billed products on annual term subscriptions, and updating the pricing for Microsoft Teams Phone. (View Highlight)
• In response to customer and partner feedback for more flexible payment options for Microsoft 365 Copilot, we are pleased to introduce a monthly billing option for annual term subscriptions of Copilot. (View Highlight)
• The monthly billing option for annual term subscriptions of Copilot will be priced 5%* higher than the annual billing option (View Highlight)
• 1. What does monthly billing for an annual term subscription entail? It means customers commit to an annual term subscription for a product, but instead of paying the entire amount upfront, billing will occur each month on the day after the coverage start date. (View Highlight)
• What products are in scope for the price standardization of monthly billing for annual term subscriptions starting on April 1, 2025? (View Highlight)
• Starting on April 1, 2025, the monthly billing plans for annual term subscriptions across Buy Online, CSP, and MCA-E will be standardized with a price update of 5%*. Products in scope include all annual subscriptions with monthly billing plans. (View Highlight)
• Examples of product categories within the scope include: (View Highlight)
• • Microsoft 365 • Office 365 • Enterprise Mobility + Security • Windows 365 • Microsoft Dynamics 365 Services • Microsoft Power Platform • Other Online Services (View Highlight)
• Starting on April 1, 2025, the annual billing pricing for Teams Phone annual term subscriptions will be updated (View Highlight)
• Teams Phone Standard: $10 per user, per month ($120 per user/year)** (View Highlight)
• The monthly billing plans for these annual term subscriptions will include a 5%* price update on top of the new annual pricing (View Highlight)
• Commercial customers with existing licenses will continue to have their current pricing until their next renewal. (View Highlight)
• for all new and renewing annual term subscriptions starting on April 1, 2025. (View Highlight)