Flexible Billing Options for Microsoft 365 Copilot

Microsoft 365 Copilot has been a game-changer for organizations, bringing the power of AI directly into tools you use daily. Whether you’re enhancing productivity, improving sales processes, or delivering exceptional service for your customer, Copilot makes it easier to get more done. 

Now, starting December 1, 2024, Microsoft is offering monthly billing for annual subscriptions to Microsoft 365 Copilot, Copilot for Sales, and Copilot for Service. 

What does this mean for you? 

  • Greater flexibility – Spread your payments over 12 months instead of making an upfront annual payment. 
  • Availability – Purchase through Buy Online, Cloud Solution Providers (CSP), or Microsoft Customer Agreement – Enterprise (MCA-E). 
  • Pricing – Monthly billing will come at a 5% premium compared to the annual upfront payment price. 

This new option caters to businesses that value predictable monthly costs over upfront investments. It’s all about flexibility and making advanced AI capabilities more accessible. 

Standardized Pricing for Monthly Billing on Annual Subscriptions 

Consistency is key, and Microsoft is introducing a standardized approach to monthly billing for annual term subscriptions. Starting April 1, 2025, the monthly billing price for annual subscriptions will include a 5% adjustment across all applicable products. 

Here’s why this matters: 

  • If you currently opt for monthly billing, this ensures consistency across all Microsoft products and platforms. 
  • If you want to avoid the 5% adjustment, you can switch to annual upfront billing when your subscription renews. 

This change is about giving you clear, predictable options while continuing to provide the same level of service and value. 

Pro Tip from Creospark: Review your subscription renewal dates ahead of time. Deciding whether monthly billing or annual upfront payments work better for your cash flow can help you maximize the benefits of this update. 

Teams Phone: A Pricing Update to Match Its Value 

Since 2017, Microsoft Teams Phone has revolutionized how businesses communicate. It’s more than just a phone system, it’s a smart, seamless calling solution integrated directly into Teams. 

Starting April 1, 2025, Microsoft is updating the annual billing price for Teams Phone Standard and other related plans. 

Here’s what’s changing: 

  • Teams Phone Standard- $10 per user/month or $120 per user/year. 
  • Adjustments to Teams Phone for Frontline Workers and Teams Phone with Teams Calling Plan bundles. 
  • No changes for E5 users – Customers using Teams Phone through Microsoft 365 E5 or Office 365 E5 will continue to enjoy the current pricing. 

This marks the first-ever price adjustment for Teams Phone standalone plans since its launch, reflecting the continuous innovations Microsoft has delivered. 

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