Microsoft is Raising Prices for Teams Phone and Power BI Services

Microsoft is getting ready to raise prices on Teams Phone and Power BI subscriptions. The company is also introducing a new monthly billing option for commercial customers with annual Microsoft 365 Copilot contracts.

Starting April 1, 2025, Microsoft will raise the price of Teams Phone subscriptions for both new and existing commercial customers. The Teams Phone Standard plan will increase from $8 to $10 per user per month, while the cost for Frontline Workers will rise from $4 to $5 per user per month.

“This price update marks the first price increase since Teams Phone launched in 2017. It is reflective of the increased value we have delivered to our customers to enable flexible, smart, and reliable calling natively in Teams,” Microsoft explained in a FAQ document.

Microsoft said this change won’t affect education, government, or nonprofit customers. Currently, there are no planned changes for customers who purchase Teams Phone via Microsoft 365 E5 or Office 365 E5 annual term subscriptions with annual billing.

Microsoft announces price changes for Power BI

According to Microsoft, the cost of an annual Power BI Pro subscription will increase from $10 to $14 per user per month, and Power BI Premium Per User (PPU) will go up from $20 to $24 per user per month. However, pricing for other Power BI editions (such as Power BI Capacities (F SKU), Power BI Report Server, Power BI Embedded, and Power BI Free) will remain unchanged.

Microsoft 365 Copilot monthly billing

In December, Microsoft will introduce a new monthly billing option for Microsoft 365 Copilot, raising prices by 5 percent for annual subscribers. Under this plan, Microsoft 365 Copilot will cost $378 per user per year ($31.50 per month), while Copilot for Sales and Copilot for Service will each cost $630 per user per year.

Customers opting for monthly payments for an annual subscription are still committed to the full year. Organizations that attempt to cancel early may face penalties or other consequences according to Microsoft’s cancellation policy.

Last but not least, Microsoft will extend the monthly billing option to annual subscriptions for other products, including Microsoft 365, Office 365, Enterprise Mobility + Security, Windows 365, Microsoft Dynamics 365 Services, and Microsoft Power Platform. However, this pricing change will not affect on-premises products like Azure Reserved Instances, Azure Savings Plans, Marketplace, GitHub, or AirGap.