Microsoft has announced changes to its Cloud Solution Provider (CSP) program that will affect licensing and pricing structures for online services. These updates, taking effect in late 2024 and early 2025, require organizations to adjust their purchasing strategies and budgets.
As a trusted Microsoft partner, Connection is here to guide you through these changes and help you optimize your licensing for long-term success.
What’s Changing?
1. New Monthly Billing Option for Microsoft 365 Copilot
Effective December 1, 2024, Microsoft has begun offering a new annual subscription term with a monthly billing option for Microsoft 365 Copilot in CSP. This option introduces more flexible payment terms compared to the current annual term with annual billing. Note: The new option comes with a 5% premium over the existing annual term/annual billing pricing.
2. Price Increase for All Annual Term/Monthly Billing CSP SKUs
Effective April 1, 2025, Microsoft will increase pricing by 5% for all annual term/monthly billing online services SKUs; this applies to both renewals and new subscriptions taking place on 4/1 and after. Previously, organizations paid the same rate for annual and monthly payment options. This change adds a cost differential.
How Will These Changes Impact Your CSP Environment?
Organizations relying on monthly billing cycles may face notable budget increases. For example, a company using Microsoft 365 E3 for 500 users on a monthly billing cycle could see costs rise by an estimated $10,000 annually. These changes emphasize the need for strategic planning and budgeting to minimize disruptions and optimize expenditure.
How Connection Can Help
As a Microsoft Cloud Solutions Provider (CSP), Connection delivers unmatched support to organizations investing in cloud technologies and solutions from Microsoft. CSP with Connection isn’t just about licensing—it’s about partnership. We’re committed to helping you optimize your cloud journey by:
1. Comprehensive Licensing Reviews—Our Microsoft specialists will analyze your current licensing agreements to identify potential savings. We’ll assess your usage, detect redundancies, and recommend adjustments to right-size your licenses under the new pricing model.
2. Budget Planning and Forecasting—Connection’s consultants will work with you to develop a proactive budget strategy that incorporates these pricing changes. We aim to help you avoid surprises and maintain financial control while adapting to the new structure.
3. Ongoing Support and Guidance—Whether you choose to switch to annual billing or maintain monthly payments, our team will assist in navigating the transition. We provide continuous support to adapt your licensing to future changes with minimal disruption.
Your Trusted Partner in Microsoft Services
At Connection, we understand the challenges of evolving licensing models and pricing structures. Our expertise ensures a smooth transition and long-term success for your organization. Don’t wait to plan for these changes. Contact us today to schedule a consultation and explore how we can help optimize your Microsoft environment.
Makayla Mota
Makayla Mota is a Partner Marketing Specialist at Connection with a background in educational technology training on Microsoft solutions in the classroom. In her spare time, she enjoys reading, spending time with her family, antiquing, hiking, and watching movies.
