Let's explain: Microsoft's Upcoming Price Changes
Happy January!
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As we kick off the new year, there’s one topic affecting all businesses with Microsoft licenses: the upcoming price changes in February and April.
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This month’s newsletter is here to provide some clarity (especially if you missed our webinar) and to help you understand how these changes might impact your business.
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If you missed the webinar, you can catch the full recording, which covers Microsoft’s price changes with detailed examples and scenarios. And remember, if your IT provider isn't actively communicating with you about these changes, you can switch to Cobweb at your next renewal for more proactive support.
What’s happening in February?
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Starting 1st February 2025, Microsoft customers will benefit from a 5%-7% price decrease depending on your Microsoft license type. This adjustment reflects foreign exchange rate fluctuations, providing some cost relief for many businesses.
What’s happening in April?
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From 1st April 2025, Microsoft will implement surcharges on certain subscription payment methods:
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Payment terms and surcharges (Starting April 2025):
The following Microsoft offerings are impacted by the above payment terms and surcharges:
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Here’s a quick summary (Please note that Microsoft has indicated a 5% surcharge for monthly payments on an annual subscription. However, the exact price will not be available until Microsoft releases their price list on 1st March):
If your renewal (regardless of how you pay or your subscription type) falls between 1st February and 31st March, you’ll benefit from a 5%-7% decrease in your subscription costs depending on your Microsoft license type. The April price increase will not affect your subscription until your next renewal in 2026.
On the other hand, if your renewal is after 1st April and you’re on an annual subscription paid monthly, you’ll likely see little to no change. This is because the 5%-7% February decrease offsets the April price increase.
We know these price changes can feel a bit confusing, and it’s not always easy to figure out how they’ll impact your business. That’s why we’ve put together a few resources to help you navigate the changes:
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Resources to help:
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See you next month,
The Cobweb Team