March 7, 2025 - Starting in April 2025, Microsoft will introduce significant price increases, particularly for monthly billing agreements. While this presents a financial challenge, it’s also an opportunity to optimize licensing strategies.

By working with a Microsoft Cloud Solution Provider (CSP) like Citrin Cooperman, businesses can reduce costs by more than 5%, and in some cases up to 10%, by optimizing their licensing configurations.

Key pricing changes

• 5% price increase for monthly billing agreements upon renewal.
• Additional pricing adjustments across various Microsoft subscriptions, potentially impacting IT budgets.

For businesses relying on Microsoft 365, Azure, or other Microsoft products and services, these increases can lead to unexpected costs—but with proactive planning, they can be mitigated or even avoided.

Why monthly billing costs more

Monthly billing plans provide cashflow flexibility but often come at a premium. Microsoft is shifting toward annual billing commitments by making monthly billing more expensive. Organizations currently on monthly billing frequency subscriptions should consider switching to annual billing frequency to secure stable, predictable pricing.

The best solution: transition to annual billing

To avoid the 5% increase, organizations should switch to annual billing paid in advance. This helps:

• Lock in lower rates and bypass the price hike.
• Predict IT expenses with stable, upfront costs.
• Achieve long-term savings by reducing overall Microsoft service costs.

Beyond cost savings: maximizing Microsoft’s value

While savings are important, Microsoft solutions offer additional business benefits, including:

• Enhanced productivity – Microsoft Teams, SharePoint, and OneDrive streamline collaboration.
• Advanced security – Defender, Sentinel, and Entra ID protect against cyber threats.
• Cloud scalability – Azure enables seamless business growth and flexibility.
• Optimized IT management – AI-driven automation reduces manual overhead.

What organizations should do now

• Evaluate billing structures – Identify annual subscriptions that have monthly billing frequency and calculate potential cost increases.
• Assess renewal dates – The best time to switch to annual billing is before renewal.
• Maximize Microsoft value – Explore new features to enhance efficiency beyond just cost savings.
• Seek professional guidance – CSPs like Citrin Cooperman offer strategic licensing optimization.

Why work with a Cloud Solution Provider (CSP)?

A CSP like Citrin Cooperman helps organizations navigate Microsoft’s pricing models and maximize savings through:

• Proactive monitoring – Stay ahead of pricing updates and renewal deadlines.
• Tailored cost-saving strategies – Optimize licensing, bundling, and billing structures.
• Enhanced productivity – Get more value from Microsoft solutions beyond just cost management.
• Ongoing support – Hands-on assistance with license management, compliance, and optimization.

Act now to secure savings

Don’t wait until renewal—take action today to avoid price increases and ensure long-term savings. Contact Citrin Cooperman’s Digital Services Practice to review your current setup and explore cost-saving opportunities.

By proactively managing Microsoft subscriptions, organizations can stay agile, cost-effective, and prepared for future pricing updates.