Microsoft has announced a pricing adjustment for Microsoft 365 subscriptions, which will take effect on April 1, 2025. As a result, Netgain will be passing through these new prices directly to clients. Below are answers to common questions about this change.
What is changing?
Microsoft is increasing pricing for Microsoft 365 subscriptions on an annual commitment under Microsoft’s New Commerce Experience (NCE). Additionally, Microsoft is implementing a 5% price increase for annual commit subscriptions that are billed monthly.
Key changes:
- The general Microsoft 365 price increase takes effect upon renewal if your renewal occurs on or after July 1, 2025.
- If your renewal occurs before April 1, 2025, you will keep your current pricing until your next renewal.
- The 5% price increase for annual commit subscriptions billed monthly will take effect at the end of each subscription’s annual commit term—this is not a blanket increase on April 1, 2025.
- Clients can avoid the 5% increase by opting for a prepaid annual commitment instead of monthly billing (see details below).
- Month-to-month subscriptions are not affected by this price increase.
Can I avoid the 5% increase for annual commit subscriptions billed monthly?
Yes. Clients on an annual commitment have the option to:
- Prepay for an annual commitment – This locks in current pricing for the full term and avoids the 5% price increase.
- Remain on an annual commitment but pay monthly – This will incur the 5% price increase at the end of the annual term.
- Stay on a month-to-month subscription – No pricing change applies.
Why is the price increasing?
- Microsoft periodically updates pricing to reflect the value of its services, including investments in security, AI-driven capabilities, and collaboration tools. This is a Microsoft-driven change, and Netgain is passing through the new rates as required.
When will the new pricing take effect?
- If your Microsoft 365 annual subscription renews on or after July 1, 2025, it will automatically transition to the new pricing.
- If your renewal occurs before April 1, 2025, your pricing remains the same until your next renewal.
- The 5% increase for annual commit subscriptions billed monthly applies at the end of each subscription’s annual term, rather than a universal increase on April 1, 2025.
Which Microsoft 365 plans are affected?
- The price increase applies to Microsoft 365 subscriptions on an annual commitment under Microsoft’s New Commerce Experience (NCE).
- Monthly (month-to-month) subscriptions are not affected.
- If your annual subscription renews after June 30, 2025, it will reflect the new pricing.
Do I need to take any action?
- If you have an annual subscription, no action is required, and your renewal will reflect the new pricing.
- If you have a month-to-month subscription, this price change does not apply to you.
- If your renewal is before April 1, 2025, you will keep your current pricing until your next renewal.
- If you would like to discuss switching to a different plan or renewal term, please contact our team before June 15, 2025.
Will there be any changes to my Microsoft 365 services?
No, this pricing adjustment does not impact the features, security or functionality of your Microsoft 365 services. You will continue to receive the same level of service and support.
How will this affect my invoice?
- If you prepay for an annual commitment, your invoice will reflect the locked-in pricing for the full term (no increase).
- If you have an annual Microsoft 365 subscription, your first invoice after renewal (starting July 2025 for most clients) will reflect the new pricing.
- If you are on a month-to-month plan, your pricing remains unchanged.
Can I make changes to my Microsoft 365 subscription before the price increase?
- Yes, if you’d like to review your Microsoft 365 plan options, upgrade, downgrade or make adjustments, please contact your account manager, so we can ensure the best solution for your needs.
Who should I contact if I have questions?
- Our team is happy to assist you with any concerns regarding this change. Please reach out to your designated account manager.