Annual/monthly price increase per 1st of April 2025

Question

Hi Microsoft,&nbsp;Besides the discussion on the price increase itself: November 2024 announcements - Partner Center announcements | Microsoft Learn&nbsp;I'm wondering how this "standardizing the billing structure" works for triannual subscriptions.&nbsp;The post only states that Annual subscriptions with Monthly payment term will undergo a +5% price increase. But how will this affect multi-year subscriptions? Eg. Triannual subscription with annual payment term.&nbsp;&nbsp;Cheers,Martijn

martijnbreet · Answer

its time to read between the lines probably:

with no mention of "annual/annual" or triennial with either annual or triennial billing i would say these don't have the 5% up.

First you paid extra for the 1M term with monthly billing (for flexibility)

Now you pay extra for wanting to pay an 1Y term monthly instead of upfront in full.

No penalties for annual upfront payments of 3Y terms (yet)

Just my 2%

Regards,

Martijn

garethevans80 · Answer

Are there changes that will impact triennial subscriptions?
Beginning April 1, 2025, mid-term billing plan changes will no longer be enabled for triennialterm 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.

This was taken from the MSFT Partner pricing change FAQ.

martijnbreet · Answer

Hi Martijn,in the FAQ it says:26. Are there changes that will impact triennial subscriptions?Beginning April 1, 2025, mid-term billing plan changes will no longer be enabled for triennialterm subscriptions. Partners will be able to select billing plans for triennial offers at purchase butcan no longer edit them at the 1 year or 2-year mark.via https://aka.ms/AMBillingChangePartnerFAQ&nbsp;Regards,Martijn

martijnelfers · Answer

Nice name ;)&nbsp;Yes, that's clear. That you can't switch billing plan mid-term. But that does not answer my question; will triannual terms with monthly/annual billing also have a +5% price increase? That's not mentioned in the announcement or FAQ.&nbsp;

nick_beacroft · Answer

I feel the purpose from Microsoft is to encourage annual upfront payments. Perhaps this is to reduce a perceived or real problem where customers commit to annual (or triennial) and then fail to pay monthly.&nbsp; Causing issues more for partners than Microsoft.I expect therefore that triennial paid monthly will incur the 5% price premium.&nbsp; With no change if the customer pays upfront for the full 3-year term, or if they pay annually.Personally, we prefer not to offer monthly payment terms for triennial commitments as it places too much risk.I still do not agree with the 5% price premium for annual (and assuming triennial too) paid monthly. Personally, I think Microsoft are taking advantage under an ill-fitting guise about flexibility.It is a shame Microsoft cannot communicate their true reasoning or problem they think they are solving with this.

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Annual/monthly price increase per 1st of April 2025

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