A lot is happening with Microsoft UK pricing between February and April 2025.
This month, it has reduced the sterling price of many of its business applications following a currency realignment. A 4-6% price decrease applies to Dynamics 365 licences, Microsoft 365, and other key products billed in GBP (£) to align with the USD ($).
However, Microsoft has also announced that starting on 1 April 2025, it will standardise its monthly per-user billing price for all new and renewing annual term subscriptions.
This will introduce an approximate 5% price increase to licences billed monthly for annual subscriptions. This includes Dynamics 365, Power Platform, Microsoft 365, and other products available across multiple currencies.
What do these changes mean for you?
If you pay monthly with an annual commitment and are billed in sterling, here’s how these changes may affect your organisation.
If your agreement renews in February or March, you can immediately benefit from the 4-6% price decrease. Also, the timing of your renewal means that the April 2025 price increase won’t apply until your next agreement renewal cycle. You could also save more by switching to annual payments in advance (see below).
If your agreement renews in April or later, the benefit of the GBP (£) price decrease will be effectively offset upon renewal because a similar % price bump will apply to licences billed monthly on an annual commitment. However, before 1 April, we recommend reviewing your licensing needs and considering early renewal options.
What action can I take?
For many customers billed for Microsoft licences monthly in sterling, there is an opportunity to act before 1st April to maximise savings.
If your agreement renews in February or March, you can switch to annual billing with an upfront payment to secure additional savings at the reduced GBP (£) rate for 12 or 36 months.
If your agreement renews in April or later, you may be able to renew early and switch to fully prepaid annual terms to defer the April increase that will apply upon your next scheduled renewal.
Next Steps
A narrow window exists to lock in the current GBP (£) savings and avoid paying more, but acting before April is essential.
Please get in touch with us for guidance on navigating these pricing updates and determining the most cost-effective licensing decision for your business.
Contact ServerSys today to discuss securing lower rates on your Microsoft licences before April 2025.
