Starting April 1, Microsoft is changing monthly billing. If your organization relies on Microsoft cloud services, this shift could affect how you manage costs and subscriptions. Here’s what you need to know.
What's Changing?
Microsoft is changing the way it handles monthly billing for cloud services. Here are the key updates:
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5% Price Increase for Monthly Billing: Starting April 1, Microsoft will apply a 5% price increase for month-to-month billing on annual and tri-annual agreements. Businesses that commit to annual or multi-year terms can lock in lower pricing.
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Fixed Billing Dates: Microsoft will now standardize the timing of monthly invoices, ensuring consistency across billing cycles.
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Payment Timing Adjustments: The timing of payments will shift, which may require businesses to adjust internal processes.
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Subscription Modifications: Changes to monthly billing may impact how adjustments to licenses and usage are reflected in invoices.
Keeping Costs Low
To avoid the 5% increase on monthly billing, we recommend committing to an annual or multi-year agreement. This ensures price stability and helps with long-term budget planning. If you need flexibility but want to manage costs, we can help explore the best option for your organization.
Key Impacts for Businesses
For CIOs and IT leaders, these changes could influence cash flow planning, cost forecasting, and how you handle Microsoft subscriptions. Here are the main points to consider:
- Payment Schedules: The timing of payments may shift, which could require adjustments to your internal finance workflows.
- Subscription Management: If you rely on monthly billing to scale services up or down, be aware of any potential restrictions or adjustments in how changes are reflected in your invoices.
How We Can Help
As a Microsoft Cloud Solution Provider (CSP), we are here to guide you through these changes and ensure a smooth transition. Here’s what we’re doing to support you:
- Providing Personalized Reviews – We are offering one-on-one reviews to help you understand how these changes impact your billing and subscription management.
- Answering Your Questions – If you have any concerns or need clarification, we encourage you to reach out to us directly.
- Adjusting Payment Strategies – We can work with your finance team to adjust payment workflows based on the new schedule.
- Ensuring a Seamless Transition – Our team will monitor for any additional updates from Microsoft and keep you informed.
Get in Touch
We understand that billing changes can be disruptive, and we want to make this transition as smooth as possible. If you have any questions or want to schedule a review, contact us today.
