Microsoft CSP Pricing Changes: What You Need to Know
As part of Microsoft's global pricing efforts, several changes to Cloud Solution Provider licenses will take effect in 2025. A 5% price reduction will apply to all CSP licenses renewing after February 1st 2025, including Business Basic, Business Standard, and Business Premium plans. But you may be wondering, a price drop in February followed by an increase in April? Don't worry, we're here to explain everything.
Below, we outline the key changes, their potential impact, and our recommendations to help you prepare.
Key Changes to CSP Licenses
Effectively 1st February 2025:
A 5% price reduction will apply to all CSP licenses renewing after this date, including Business Basic, Business Standard, and Business Premium plans.
Effective 1st April 2025:
A 5% price increase will apply to 12-month commitment licenses with monthly billing. Teams and Power BI licenses will also experience a price increase for subscription renewals after this date.
Understanding your subscription options
Microsoft offers three main subscription models for CSP licenses, each with its own benefits and drawbacks. Here's a comparison to help you make an informed choice:
Monthly subscriptions:
This model provides maximum flexibility, making it ideal for businesses with changing staffing needs. You can adjust the number of licenses each month and switch license types as needed. However, this flexibility comes at a premium: monthly subscriptions are 20% more expensive than annual plans and are subject to price fluctuations throughout the year.
Annual Subscription Billed Monthly:
This option strikes a balance between cost savings and commitment. By choosing this model, you can save 15% savings compared to annual subscriptions billed monthly. Pricing is locked for the entire year, shielding your business from price increases. However, it requires an upfront commitment to a fixed number of licenses.
Our Recommendations
For Existing Licenses:
Review your current monthly subscription and consider switching to an annual plan before 31st March 2025. By making this change, you can save up to 20% secure current pricing, and avoid the upcoming price increases.
For New Licenses:
If you're planning to purchase new licenses, try to do so between 1st February and 21st March 2025. This period allows you to take advantage of the 5% price reduction before the April price increases are implemented.
For Teams and Power BI Licenses:
Since Teams and Power BQ licenses will see a price increase on 1st April 2025, we recommend renewing or purchasing these licenses early to lock in current prices and minimise additional costs.
Need Assistance?
Here at Concord, our team can help you navigate these changes. Whether you need advice or optimising your licensing strategy or help transitioning to more cost-effective plans, we're ready to assist. Now is the perfect time to review your licences and secure the best value for your business. Please contact your account manager for more details.