What you need to know
Starting April 1, 2025, Microsoft implemented a 5% price increase for New Commerce Experience (NCE) subscriptions with annual commitments, impacting businesses relying on monthly billing.
Breakdown of the changes
What’s Changing:
A 5% premium will be added to monthly billing Microsoft 365 subscriptions.
Who is Affected:
- New Subscriptions: Those purchasing Microsoft 365 subscriptions with monthly billing on or after April 1, 2025.
- Existing Subscriptions: Customers with existing monthly billing will see the price increase at their next renewal on or after April 1, 2025.
Why the Change:
Microsoft is standardizing the monthly billing price across Buy Online, CSP, and MCA-E models.
What to do:
Businesses using monthly billing should consider switching to annual billing to avoid the 5% unit price increase or plan for the higher costs at their next renewal.
How CloudBlue can help
As of April 1, 2025, CB SaaS-powered Marketplaces configured with Effective Date Pricing has automatically switched over to Microsoft Preview Pricing to process new Sales Orders and existing Subscription Renewals.
Microsoft Customers on a Monthly Commitment Offer may lower their amortized costs by switching to an Annual Commitment. This may be done using a Scheduled Change, or within 165 hours of a Monthly Commitment Term Renewal event.
CloudBlue is also now initiating the regular Catalog & Pricing Update processes. This will capture the deltas between Microsoft Production and Microsoft Preview data.
Don’t let this type of change catch you off guard, prepare today with CloudBlue!
