Microsoft’s Vision for Commerce: Flexibility, Simplicity, and Partner Empowerment

Microsoft continues to innovate and evolve its commerce and licensing models, ensuring flexibility, transparency, and alignment with the needs of customers and partners. These changes, effective in 2024 and 2025, aim to optimise offerings for organisations across sectors while providing tailored solutions through our partner ecosystem.

This detailed overview breaks down the key updates, enabling customers and partners to make informed decisions about their Microsoft investments.

1. Shift from EA to CSP or MCA-E for Simple Cloud Customers

Effective 1 April 2025, simple cloud-only Enterprise Agreement (EA) customers in direct markets will no longer be able to renew their EAs. These customers will need to transition to:

  • CSP (Cloud Solution Provider): For those seeking a value-added experience with partner support.
  • MCA-E (Microsoft Customer Agreement for Enterprise): For organisations preferring direct management of per-user purchases without partner involvement.

Microsoft will notify impacted customers beginning January 2025, ensuring adequate time to adapt to the new model.

2. 5% Price Uplift for Monthly Billing on Annual Subscriptions

Starting 1 April 2025, a 5% price increase will apply to monthly billing plans for annual subscriptions across all purchasing motions (Buy Online, CSP, MCA-E).

  • Customers renewing before this date can lock in current pricing for the next term.
  • Organisations are encouraged to switch to annual billing (upfront payment) at renewal to avoid this uplift.

This standardisation promotes clarity and consistency across Microsoft’s billing structure.

3. Flexible Billing for Microsoft 365 Copilot

As of 1 December 2024, customers can opt for monthly billing for Microsoft 365 Copilot’s annual term subscriptions, including:

  • Microsoft 365 Copilot
  • Microsoft 365 Copilot for Sales
  • Microsoft 365 Copilot for Service

Monthly billing will cost 5% more than annual upfront payments, offering flexibility while maintaining subscription commitments.

4. Unbundling Teams from Microsoft 365 and Office 365 Enterprise Suites

To provide modular pricing and adaptability, M365/O365 Enterprise Suites (E3/E5) with Teams will go End-of-Sale (EOS) globally from 1 April 2025.

  • Customers can renew existing subscriptions and adjust billing frequency.
  • New offerings will exclude Teams, allowing customers to purchase Teams Phone separately for $10 per user/month.

This transition simplifies package choices and aligns with the evolving demands of modern workplaces.

5. Power BI Pricing Adjustments

From 1 April 2025, the pricing for Power BI subscriptions will change:

  • Power BI Pro: $14 per user/month
  • Power BI Premium: $24 per user/month

Monthly billing for annual subscriptions will include the 5% price uplift, reflecting the enhanced capabilities of these tools.

6. AI and Microsoft 365 E5 Promotion

Microsoft is supporting partners to prepare customers for AI-driven transformation with a 15% discount on Microsoft 365 E5 annual commitment subscriptions.

  • Applicable to eligible customers with 1–2,400 licenses.
  • Offer available globally from 1 January 2025 to 30 June 2025.

This promotion encourages adoption of advanced productivity, compliance, and analytics tools, positioning organisations for growth in the AI era.

7. Teams Phone Pricing Updates

For the first time since its introduction, the annual pricing for Teams Phone will be updated from 1 April 2025:

  • Teams Phone Standard: $10 per user/month ($120 per user/year)
  • Additional packages with calling plans will range from $144–$408 per user/year.

Monthly billing options will incur the standard 5% uplift, ensuring transparency in pricing.

Supporting Partners to Drive Customer Success

Microsoft’s updates are underpinned by its commitment to enabling partners. With partners leading the CSP motion, organisations can leverage expert guidance, value-added services, and scalable solutions to thrive in an increasingly AI-driven world. Partners are encouraged to explore incentives, promotions, and updated tools to support customers through these transitions effectively.

These updates reflect Microsoft’s dedication to innovation, customer choice, and partner empowerment. As we navigate these updates together, Microsoft remains committed to empowering businesses and partners alike. Change can be challenging, but it’s also an opportunity—an opportunity to embrace flexibility, innovate with confidence, and create lasting impact.

Let Oreta guide you through these changes, streamline your cloud investments, and unlock the full potential of your Microsoft solutions. Contact our team today to discover tailored strategies for your business success.

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