Copilot and Other Pricing Updates Partner FAQ
Copilot and Other Pricing Updates Partner FAQ
Contents
Frequently Asked Questions ....................................................................................................................................... 1
Microsoft 365 Copilot annual term subscriptions with monthly billing ................................................ 2
April 1, 2025 Billing Structure Standardization and Pricing Update ....................................................... 5
Power BI Price Update .............................................................................................................................................. 9
Teams Phone price update .................................................................................................................................. 11
Resources ........................................................................................................................................................................ 14
On November 12, 2024, we announced 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 monthly billed products on annual and
triennial term subscriptions, and updating the pricing for Microsoft Teams Phone Standard and
Power BI. For the set of announcements:
First, starting April 1, 2025, Microsoft will standardize the billing structure and introduce a
pricing update for all products with per user monthly billing plans for annual term subscriptions
across channels (Buy Online, CSP, MCA-E) and all segments. All new and renewing monthly
billing plans for annual term subscriptions starting on April 1, 2025, will be priced 5% higher
than the annual billing option for annual subscription plans. Customers may elect to change
their billing plan from monthly to annual billing with upfront payment, priced 5% lower than the
updated monthly billing option, at their renewal date.*
• Changes to the billing frequency for annual term subscriptions for end-of-sale (EOS) and
EOS with Conversion offers (i.e. from monthly billing to annual billing for an annual term
subscription) such as Microsoft 365/Office 365 Enterprise suites with Teams can be
scheduled to occur at renewal.
• Mid-term billing frequency changes for triennial offers will no longer be allowed.
Customers will still be able to make billing frequency changes for triennial offers at
renewal.
• Subscription term and billing frequency can be specified for the paid subscription that
trial purchases renew into. Trials will continue to default to monthly billing for annual
subscription at the point of renewal.
Second, we announced updated pricing for Microsoft Teams Phone Standard, Power BI Pro, and
Power BI Premium Per User. These price updates reflect the annual billing for annual term
subscription pricing, and will be implemented as follows for new and existing customers upon
renewal:
• Teams Phone Standard: $10 per user, per month ($120 per user/year)*
• Teams Phone Standard for Frontline Workers: $5 per user, per month*
• Teams Phone with pay-as-you-go calling (for users in UK/CAN): $12 per user, per month*
• Teams Phone with pay-as-you-go calling (for users in US & all other service markets): $13
per user, per month*
• Teams Phone with Calling Plan (for customers in US/UK/CAN): $17 per user, per month*
• Teams Phone with Calling Plan (for customers outside US/UK/CAN): $22 per user, per
month*
• Teams Phone with domestic and international calling: $34 per user, per month ($408 per
user/year)*
• Power BI Premium Per User licenses: $24 per user, per month*
*The monthly billing plan for annual subscription will be priced 5% higher. There may be slight
variations in price due to exchange rate fluctuations, local pricing policies and rounding rules.
Microsoft 365 Copilot annual term subscriptions with monthly billing –
AVAILABLE NOW
3. What was introduced on December 1, 2024 related to Microsoft 365 Copilot?
On December 1, 2024, Microsoft introduced a new monthly billing plan for annual term
subscriptions of Microsoft 365 Copilot, Microsoft 365 Copilot for Sales, and Microsoft 365
Copilot for Service on the new commerce platform. This means customers have the option to
pay on a monthly basis instead of making an upfront annual payment. Customers will still have
the option of an annual billing plan (upfront payment) for annual subscriptions at a 5% discount
over the monthly billing plan. Please refer to this Partner Center announcement to learn more.
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.
5. Which products will get the monthly billing option for annual subscriptions starting
on December 1, 2024?
On December 1, 2024, Microsoft 365 Copilot, Microsoft 365 Copilot for Sales and Microsoft 365
Copilot for Service monthly billing for annual term subscriptions launched across Buy Online,
CSP, and MCA-E. The monthly billing option for annual term subscriptions of Copilot is priced
5%* higher than the annual billing option. Please note that the annual billing price for annual
subscriptions of Microsoft 365 Copilot, Copilot for Sales, and Copilot for Service remains
unchanged.
6. With Copilot in monthly billing, can customers pay for Copilot monthly and cancel
their subscription at any time?
The new monthly billing option gives customers flexibility to pay on a monthly basis. However,
they still commit to an annual subscription, cancelations follow the standard cancelation policy.
7. Is Microsoft 365 Copilot for EDU or US Government customers part of the monthly
billing for annual term scope?
Yes, Academic and GCC customers will be able to leverage Microsoft 365 annual term
subscriptions with monthly billing.
8. Is Microsoft 365 Copilot for eligible nonprofit customers part of the monthly billing
for annual term scope?
Yes, non-profits will be eligible for monthly billing for annual term on the nonprofit-discounted
Microsoft 365 Copilot offer beginning on January 1st in CSP.
9. Why is Microsoft Copilot Studio not part of the annual term subscriptions with
monthly billing launch?
Copilot Studio already offers a monthly billing option for the annual term subscription.
10. How does the Copilot promo apply for the new monthly billing option for annual
subscriptions of Microsoft 365 Copilot?
Customers can take advantage of the 15% discount on Microsoft 365 Copilot with the new
monthly billing plan for an annual subscription commitment. This promo expires on 4/1/25.
Note that there is a 5% price increase for the monthly billing option on top of the promo
pricing. By committing to a 12-month subscription, customers can secure the promo pricing for
the entire duration and have the flexibility to add up to 300 licenses. For more details, please
refer to the promo FAQ: https://aka.ms/CopilotCSPPromoFAQ
11. Is there a discounted offer available on Microsoft 365 Copilot to eligible nonprofits
customers?
Yes, beginning November 1, 2024, eligible nonprofit customers can receive a 15% discount
through the CSP channel using the new Microsoft 365 Copilot (Non-profit pricing) SKU. There is
no minimum purchase requirement, and no limit on the number of licenses you can buy.
Partners can find more information about it here.
12. Do you have any plans to apply price levels waterfall in EA for Copilot?
This topic is not part of our current news, and we don't have anything to share about it today.
13. Are there any plans to release Microsoft 365 Copilot on Month-to-Month?
This topic is not part of our current news, and we don't have anything to share about it today.
14. What can be shared with CSP partners to help customers understand this new monthly
billing option for annual subscriptions of Microsoft 365 Copilot?
Inform customers of the new monthly billing option for annual subscriptions of M365 Copilot
that launched on December 1, targeting customers who are blocked due to pricing, using the
resources on Copilot for CSP Partner Page. Partners can leverage the 15% promo, expiring April
1st, 2025, with this new option, and position the Getting Started Offer for CSP partners to deliver
value to customers sooner, while locking in 12 months of promotional pricing.
April 1, 2025, Billing Structure Standardization and Pricing Update
15. What products are in scope for the price standardization of monthly billing for annual
and triennial term subscriptions starting on April 1, 2025?
Starting on April 1, 2025, the monthly billing plans for annual and triennial term subscriptions
across Buy Online, CSP, and MCA-E will be standardized with a price update of 5%. Please note
there may be slight variations in price due to exchange rate fluctuations, local pricing policies,
and rounding rules. To manage your billing, follow these steps or talk to your Microsoft Partner.
Products in scope include all annual and triennial term subscriptions with monthly billing plans.
To manage your billing, follow these steps or talk to your Microsoft Partner.
Examples of product categories within the scope include:
• Microsoft 365
• Office 365
• Windows 365
Please note that this list is not exhaustive, and not all annual and triennial term subscriptions in
these categories offer a monthly billing option.
16. What products are not impacted by the pricing update for monthly billing plans for
annual and triennial term subscriptions?
The following products are out of scope: Azure RI/Savings Plan, Marketplace, GitHub, AirGap,
on-premises software.
17. Will the price for annual and triennial term subscriptions with monthly billing plans be
exactly 5% more than the equivalent annual/ triennial subscriptions with annual /
triennial billing plans ?
Percentage changes on individual SKUs may vary slightly from these percentages due to pricing
calculations and rounding rules.
All the segments (Gov, EDU, Non-profit) and the following channels (MCA-E, CSP, Buy Online)
are included for the annual and triennial term subscription with monthly billing 5% price update.
19. Why are we making this change to monthly billing plans for annual and triennial term
subscriptions across the new commerce platform?
This change aims to continue providing customers with cash flow flexibility while maintaining
the value and benefits of our services. By aligning our pricing strategy across channels and
segments, we ensure consistency and transparency across all platforms.
20. How does the update effective April 1, 2025, impact existing subscriptions?
Customers with existing annual and triennial term subscriptions with monthly billing will see the
pricing change starting at their next renewal date after April 1, 2025. Customers who want to
change to an annual billing plan, which is priced 5% lower than the updated monthly billing
option, for their annual subscription can do so at their next renewal date after April 1, 2025.
After April 1, 2025, CSP customers on monthly billing plans for annual subscriptions of EOS SKUs
who wish to change to annual billing option will be able to do so and retain their suites with
Teams. Billing frequency changes for EOS and EOS with Conversion offers will be allowed at
renewal after April 1, 2025.
Note: In order for a customer with Microsoft 365/Office 365 Enterprise suites with Teams to
maintain their subscription of active licenses to those EOS SKUs, partners will need to manage
the renewals by enabling auto-renew or scheduling the change. Partners can no longer purchase
EOS SKUs for CSP customers.
Partners can refer to this Partner Guidance Deck for the pricing update changes.
21. In light of these updates, can customers change CSP partners mid-term?
Customers wishing to change their CSP partner can do so by leveraging the partner-to-partner
transfer capability in CSP. Both partners need to participate in the transfer, and customers can
use P2P to transfer subscriptions of Microsoft 365/Office 365 Enterprise suites with Teams.
Partners can find more information about P2P transfers here.
22. My customer has a monthly billing plan for annual term subscription that renews
before April 1, 2025, when will they see the price increase?
Customers with monthly billing for annual term subscriptions renewing, or upselling, before
April 1, 2025 will enjoy the existing pricing until their next renewal. For example, a customer with
monthly billing for annual subscription renewing on March 1, 2025 will not see the price update
until their next renewal on March 1, 2026.
Customers may elect to change their billing plan from monthly to annual billing with upfront
payment, priced 5% lower than the updated monthly billing option, at their renewal date. After
April 1, 2025, CSP customers on monthly billing plans for annual subscriptions of EOS SKUs who
wish to change to annual billing option will be able to do so and retain their suites with Teams.
Billing frequency changes for EOS and EOS with Conversion offers will be allowed at renewal
after April 1, 2025.
Note: In order for a customer with Microsoft 365/Office 365 Enterprise suites with Teams to
maintain their subscription of active licenses to those EOS SKUs, partners will need to manage
the renewals by enabling auto-renew or scheduling the change. Partners can no longer purchase
EOS SKUs for CSP customers.
Partners can refer to this Partner Guidance Deck for more customer scenarios related to the
pricing update changes.
23. My customer has a monthly billing plan for annual subscription that renews after April
1, 2025, when will they see the price increase?
Customers with monthly billing for annual subscriptions renewing after April 1, 2025 will see the
updated pricing starting at that next renewal date. For example, a customer with monthly billing
for annual subscription renewing on May 1, 2025 will see the price update starting the next
monthly billing cycle.
Customers may elect to change their billing plan from monthly billing to annual billing with
upfront payment, priced 5% lower than the updated monthly billing option, at their renewal
date.
Partners can refer to this Partner Guidance Deck for the pricing update changes.
24. My customer has a subscription plan that renews before April 1, 2025, but wants to
add seats after April 1, 2025. What will the price of additional seats be?
If a customer's subscription renews on Mar 1, 2025, and they need to add seats to the
subscription on May 1, 2025 (after the 5% price uplift for A/M on April 1), those seats will be
billed at the pre-uplift price.
25. How does this price update to monthly billing plans for annual subscriptions impact
customers on subscriptions of Microsoft 365 E3/E5 and Office 365 E1/E3/E5 with Teams
which are end-of-sale (EOS)?
After April 1, 2025, the 5% pricing update will also apply for renewals of monthly billing plans for
annual subscriptions of Microsoft 365 E3/E5 and Office 365 E1/E3/E5 with Teams.
After April 1, 2025, CSP customers on monthly billing plans for annual subscriptions of EOS
SKUs who wish to choose to change to annual billing will be able to do so and retain their suites
with Teams. Billing frequency changes for EOS and EOS with Conversion offers will be allowed at
renewal after April 1, 2025.
If at any time the CSP customer's subscription for Microsoft 365/Office 365 Enterprise suites with
Teams expires, they will not be able to renew, upgrade, or add seats to that subscription. In
order for an existing CSP customer to maintain their subscription of active licenses to Microsoft
365/Office 365 Enterprise suites with Teams, partners will need to manage renewals using auto-
renew or by scheduling the renewal. Partners will not be able to buy a new subscription of
M365/O365 Enterprise suites with Teams for an existing customer. Please see Manage end-of-
sale offers and https://aka.ms/M365TeamsChangeOnePager for more information for these EOS
offers.
Partners can refer to this Partner Guidance Deck for the pricing update changes.
26. My customer has a monthly billing for annual subscription of Microsoft 365 E3/E5 and
Office 365 E1/E3/E5 with Teams which are end-of-sale (EOS) SKUs, can they change
their billing frequency to annual (upfront) billing and keep their Teams entitlement?
Yes. Billing frequency changes for EOS and EOS with Conversion offers will be allowed at
renewal after April 1, 2025. CSP customers on monthly billing plans for annual subscriptions of
EOS SKUs who wish to change to annual billing, will be able to do so and retain their suites with
Teams at renewal.
If at any time the CSP customer's subscription for Microsoft 365/Office 365 suite with Teams
expires, they will not be able to renew, upgrade, or add seats to that subscription. In order for an
existing CSP customer to maintain their subscription of active licenses to Microsoft 365/Office
365 suites with Teams, partners will need to manage renewals using auto-renew or by
scheduling the renewal. Partners will not be able to buy a new subscription of M365/O365 suites
with Teams for an existing customer. Please see Manage end-of-sale offers and
https://aka.ms/M365TeamsChangeOnePager for more information.
Partners can refer to this Partner Guidance Deck for the pricing update changes.
27. Partners start the renewal process in advance of the customer’s actual renewal date,
how can partners get pricing for the monthly billing / annual and triennial term commit
prior to 4/1/2025?
The pricing update for monthly billing for annual and triennial term subscription commitments
will be reflected in the April CSP price list preview available in March.
28. Will customers purchasing on Legacy channels also get this 5% price update for annual
and triennial term subscriptions with monthly billing?
The 5% pricing update for annual and triennial term subscriptions with monthly billing starting
on April 1, 2025 will apply to customers purchasing through the new commerce platforms – Buy
Online, CSP, MCA-E.
29. Will trials continue to default to the monthly billing option for annual bscriptions?
Trials will continue to default to renewing into annual subscriptions with monthly billing. Starting
April 1, 2025, partners will be able to specify values, including subscription term and billing
frequency, for the paid subscriptions their trial purchases renew into.
30. Are there other changes that will impact triennial subscriptions?
Beginning April 1, 2025, mid-term billing plan changes will no longer be enabled for triennial-
term subscriptions. Partners will be able to select billing plans for triennial offers at purchase but
can no longer edit them at the 1 year or 2-year mark.
31. Where can I find more information regarding these pricing updates and helping CSP
customers with upcoming renewals?
Partners can learn more about the pricing updates in the Partner Blog Post and the Partner
Center announcement. Partners can leverage resources, such as the Partner Guidance Deck with
customer scenarios and the Q3 Renewals Toolkit on the CSP Overview Partner Page, and the
new Microsoft 365 E5 15% off promo available from January 1st through June 30, 2025 to help
you plan your renewal conversations and pitch upsell for high propensity customers.
Starting April 1st 2025, the pricing of some Power BI licenses are changing. See the table below
for more information
*This pricing reflects the pricing for annual billing plan for annual subscriptions. The monthly
billing plan for annual subscription will be priced 5% higher. There may be slight variations in
price due to exchange rate fluctuations, local pricing policies and rounding rules.
33. What is the rationale behind the price update for Power BI?
Since its launch in 2015, Power BI has been at the forefront of business intelligence (BI),
transforming how organizations share and consume data-driven insights, with the Power BI
team consistently delivering enhancements and updates every month. Since its introduction in
GA, the price of Power BI Pro and PPU has stayed unchanged. The increase in price is reflective
of all the investment in the innovation we have delivered over the years.
34. Will the annual billing price for annual term Microsoft 365/Office 365 E5 subscriptions
be changed?
Currently, there are no pricing changes for customers who purchase Power BI through Microsoft
365 E5 or Office 365 E5 annual term subscriptions with annual billing.
35. Will there be any changes to the features and capabilities of Power BI?
The core features and capabilities of Power BI Pro will remain the same. Customers will continue
to benefit from continuous updates and enhancements that improve the overall user experience.
Power BI Pro remains competitively priced compared to other BI solutions in the market.
37. How will the Power BI Pro and/or PPU standalone price increase impact my current
subscription and contracts?
EA customers: Existing EA customers purchasing Power BI Pro and/or PPU standalone, can
continue using their current SKUs until their next renewal. At the time of renewal, customers will
transition to the new pricing structure.
CSP customers: The pricing update to Power BI Pro and/or PPU standalone will go into effect
for all new and renewing CSP subscriptions starting April 1, 2025. For those customers on
monthly billing plan for annual subscriptions of Power BI Pro and/or PPU standalone, they will
also see the 5% pricing increase for renewals after April 1, 2025.
Web direct: Web customers and customers paying month-to-month will pay the new price
effective April 1, 2025.
38. What will happen with existing or new customers of Power BI after April 1, 2025?
Customers with existing licenses will continue to have their current pricing until their next
renewal. New customers purchasing Power BI Pro and Power BI Premium per user licenses after
April 1, 2025, will directly contract with the updated pricing.
39. Will this Power BI pricing update impact Government Cloud, EDU, or non-profit
customers?
Other segments are currently not part of the scope.
41. Will the price standardization across monthly billing plans for annual term
subscriptions also impact Power BI customers?
Yes, the price standardization will also apply to Teams Phone's monthly billing price for annual
term subscriptions. Starting on April 1, 2025, the monthly billing plans for the annual term of
Teams Phone will include a 5%* price update on top of the new annual pricing. This change
ensures consistency and transparency across all platforms.
• Existing and new customers: No action is required at this time. Starting April 1, 2025,
the new pricing will automatically take effect. Any new contracts executed from April 1st
onwards will automatically receive the new pricing.
• CSP partners: Please prepare to update pricing of Power BI in your billing systems
ahead of April 1, 2025, when the price increase will go into effect.
• Microsoft sellers: Please familiarize yourself with announcement and the implications
for your customers.
To reflect the continuous innovations we’ve delivered since Teams Phone launched in 2017, we
will update its annual billing price for annual term subscriptions starting April 1, 2025. The
updated pricing for Teams Phone Standard for new and renewing commercial customers will be
$10 per user, per month ($120 per user/year)*. Pricing for Teams Phone for Frontline Workers
and Teams Phone with Teams Calling Plan bundles will also be updated.
*This pricing reflects the pricing for annual billing plan for annual subscriptions. The monthly
billing plan for annual subscription will be priced 5% higher. There may be slight variations in
price due to exchange rate fluctuations, local pricing policies and rounding rules.
Teams Phone Standard $10 per user, per month ($120 per user/year)*
Teams Phone Standard for Frontline $5 per user, per month ($60 per user/year)*
Workers
Teams Phone with pay-as-you-go calling $12 per user, per month ($144 per user/year)*
(for users in UK/CAN)
Teams Phone with pay-as-you-go calling $13 per user, per month ($156 per user/year)*
(for users in US & all other service markets)
Teams Phone with Calling Plan (for $17 per user, per month ($204 per user/year)*
customers in US/UK/CAN)
Teams Phone with Calling Plan (for $22 per user, per month ($264 per user/year)*
customers outside US/UK/CAN)
Teams Phone with domestic and $34 per user, per month ($408 per user/year)*
international calling
*This pricing reflects the pricing for annual billing plan for annual subscriptions. The monthly
billing plan for annual subscription will be priced 5% higher. There may be slight variations in
price due to exchange rate fluctuations, local pricing policies and rounding rules.
45. What is the rationale behind the Teams Phone price increase?
This price update marks the first price increase since Teams Phone launched in 2017. It is
reflective of the increased value we have delivered to our customers to enable flexible, smart,
and reliable calling natively in Teams. 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.
46. Will there be any changes to the features and capabilities of Teams Phone?
The features available in Teams Phone will remain the same. Customers will continue to benefit
from continuous new features and enhancements to enable flexible, smart, and reliable calling in
Teams, and simplified management for IT administrators.
47. How will the Teams Phone price increase impact my current subscription and
contracts?
The price update will impact new and renewing commercial customers. See additional details
below based on different subscriptions and contracts.
• Cloud Solution Provider (CSP) customers: The pricing updates for Teams Phone
standalone offers will go into effect for all new and renewing CSP subscriptions starting
April 1, 2025. Customers on monthly billing plan for annual subscriptions will also see the
5% pricing increase for renewals after April 1, 2025. This change ensures consistency and
transparency across all platforms.
• Web direct: Web direct customers and customers paying month-to-month will pay the
new prices effective April 1, 2025.
48. What will happen with existing or new customers of Teams Phone standalones after
April 1, 2025?
Commercial customers with existing licenses will continue to have their current pricing until their
next renewal. New commercial customers purchasing Teams Phone licenses after April 1, 2025,
will directly contract with the updated pricing.
49. Will the annual billing price for annual term Microsoft 365/Office 365 E5 subscriptions
be changed?
Currently, there are no pricing changes for customers who purchase Teams Phone through
Microsoft 365 E5 or Office 365 E5 annual term subscriptions with annual billing.
50. Will the price standardization across monthly billing plans for annual term
subscriptions also impact Teams Phone customers?
Yes, the price standardization will also apply to Teams Phone's monthly billing price for annual
term subscriptions. Starting on April 1, 2025, the monthly billing plans for the annual term of
Teams Phone will include a 5%* price update on top of the new annual pricing. This change
ensures consistency and transparency across all platforms.
• Existing and new customers: No action is required at this time. Starting April 1, 2025,
the new pricing will automatically take effect. Any new contracts executed from April 1st
onwards will automatically receive the new pricing.
• CSP partners: Please prepare to update pricing of Teams Phone Standard in your billing
systems leading up to April 1, 2025, when the price increase will go into effect.
• Microsoft sellers: Please familiarize yourself with the announcement and inform your
customer if they will be impacted by this update.
Teams Phone remains competitively priced compared to other cloud calling solutions in the
market.
53. Will this pricing impact Government Cloud, EDU, or non-profit customers?
Resources
• Customer facing blog: https://aka.ms/MWPricingUpdates/Blog