Starting April 1, 2025, you’ll see a small change in how some annual subscriptions are billed. For all new and renewing monthly billing plans tied to annual subscriptions, the price will be 5% higher than if you choose the annual billing option for that same annual subscription. This is a change being enacted by Microsoft that will be reflected in client billing in the future.
What Does This Mean for You?
Microsoft notes this adjustment is designed to help Microsoft keep providing you with top-notch services and benefits, while still offering flexibility with your cash flow. By standardizing their billing structure, Microsoft is aiming for greater consistency and transparency across the board.
Your Options Moving Forward:
- Switch to Annual Billing: At your renewal date, you can easily change your billing plan from monthly to annual for your annual subscription. This is a great way to avoid the 5% difference.
- For EOS and EOS with Conversion Offers: If you’re on plans like Microsoft 365 E3/E5 and Office 365 E1/E3/E5 suites with Teams, you’ll also be able to schedule changes to your billing frequency at renewal, starting April 1, 2025.
- Trial Subscriptions: Trials will continue to default to renewing into annual subscriptions with monthly billing. However, starting in April 2025, we will have more control. There will be the ability to specify details like license quantity, term, and billing frequency for paid subscriptions that trials renew into. There will also be the option to prevent trials from auto-renewing.
Call us to set up a time with our finance rep today to discuss how we can assist you with your billing solution to meet your specific needs and build a more resilient foundation for your future success.
