Flexible billing for Microsoft 365 Copilot, Pricing updates for annual subscriptions & Teams Phone

Flexible billing for Microsoft 365 Copilot, Pricing updates for annual subscriptions & Teams Phone

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.

Introducing monthly billing for Microsoft 365 Copilot annual term subscriptions

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. Starting on December 1, 2024, customers who purchase annual term subscriptions of Microsoft 365 Copilot, Microsoft 365 Copilot for Sales, and Microsoft 365 Copilot for Service will have the option to pay on a monthly basis instead of making an upfront annual payment.

The monthly billing option for annual term subscriptions of Copilot will be priced 5%* higher than the annual billing option and will be available across Buy Online, CSP, and MCA-E. Please note that the annual billing price for Microsoft 365 Copilot, Copilot for Sales, and Copilot for Service annual subscriptions remains unchanged.

Standardizing the monthly billing price for all annual term subscriptions

To continue providing customers with cash flow flexibility while maintaining the value and benefits of our services, we will standardize the monthly billing price for all new and renewing annual term subscriptions starting on April 1, 2025. Examples of in-scope products are captured in the FAQ section below. This standardization will introduce a 5%* price update to the monthly billing plans for annual subscriptions across Buy Online, CSP, and MCA-E. By standardizing the billing structure, we ensure consistency and transparency across all platforms.

Customers who want to keep their existing pricing may choose to switch from monthly billing to annual billing with upfront payment for their annual term subscription at their renewal date.

Updating the annual billing price for Microsoft Teams Phone

Teams Phone has been redefining communication for organizations of all sizes since its launch in 2017. To reflect the continuous innovations we’ve delivered, we will update its annual billing price for annual term subscriptions starting April 1, 2025. This will be the first price update for Teams Phone standalone plans since their inception.

The updated pricing reflects the increased value we have delivered to enable flexible, smart, and reliable calling natively in Teams. For new and renewing commercial customers, the price of Teams Phone Standard 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, see FAQ section for additional details. 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.

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Frequently asked questions

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.

2. What products are in scope for the price standardization of monthly billing for annual term subscriptions starting on April 1, 2025?

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. 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
• Enterprise Mobility + Security
• Windows 365
• Microsoft Dynamics 365 Services
• Microsoft Power Platform
• Other Online Services

Please note that this list is not exhaustive, and not all annual term subscriptions in these categories offer a monthly billing option.

3. Which Teams Phone products will have updated pricing?

Starting on April 1, 2025, the annual billing pricing for Teams Phone annual term subscriptions will be updated to reflect the continuous innovations delivered since the launch of Teams Phone. Products in scope include:

• Teams Phone Standard: $10 per user, per month ($120 per user/year)**
• Teams Phone Standard for Frontline Workers: $5 per user, per month ($60 per user/year)**
• Teams Phone with pay-as-you-go calling (for users in UK/CAN): $12 per user, per month ($144 per user/year)**
• Teams Phone with pay-as-you-go calling (for users in US & all other service markets): $13 per user, per month ($156 per user/year)**
• Teams Phone with Calling Plan (for customers in US/UK/CAN): $17 per user, per month ($204 per user/year)**
• Teams Phone with Calling Plan (for customers outside US/UK/CAN): $22 per user, per month ($264 per user/year)**
• Teams Phone with domestic and international calling: $34 per user, per month ($408 per user/year)**

The monthly billing plans for these annual term subscriptions will include a 5%* price update on top of the new annual pricing. This change ensures consistency and transparency across all platforms.

4. 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 get the updated pricing.

5. 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.

6. Where can Microsoft Partners get more information?

For partner guidance, please refer to the Partner FAQ.

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* There may be slight variations in price due to exchange rate fluctuations, local pricing policies, and rounding rules.

** 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.