Data Centre and Cloud
Important changes happening to your NCE agreement around pricing
Microsoft made an announcement yesterday regarding changes to the NCE agreement on the 1st December 2024 and 1st April 2025.
Flexible billing for Microsoft 365 Copilot
December 1, 2024, Microsoft are introducing a new monthly billing plan for annual subscriptions of Microsoft 365 Copilot, Microsoft 365 Copilot for Sales, and Microsoft 365 Copilot for Service on the New Commerce Platform (NCE agreement). This new monthly billing option for annual subscriptions will be priced 5% higher than the annual billing (upfront payment) option for annual subscription plans for Microsoft 365 Copilot, Microsoft 365 Copilot for Sales, and Microsoft 365 Copilot for Services.
Standardising the billing structure with a pricing update
For all other products with per user monthly billing plans for annual subscriptions, Microsoft are introducing the same pricing update to standardise the billing structure across Buy Online, CSP, and MCA-E. Starting on April 1, 2025, all new and renewing monthly billing plans for annual subscriptions will be priced 5% higher than the annual billing option for annual subscription plans.
Updating pricing for Microsoft Teams Phone and Power BI
Pricing for Microsoft Teams Phone Standard, Power BI Pro, and Power BI Premium Per User starting on April 1 2025 will also be increased. This marks the first price increase for both standalone products since Microsoft launched Teams Phone in 2017 and Power BI in 2015 and reflects the collective value that has been added to Teams Phone and Power BI over the years. These price updates will be implemented as follows for new and existing customers upon renewal. These price increases reflects the pricing for annual billing plan for annual subscriptions. The monthly billing plan for annual subscription will be priced 5% higher.
Teams Phone Standard licenses will be $10 per user per month.
Power BI Pro licenses will be $14 per user per month.
Power BI Premium Per User licenses will be $24 per user per month.
Currently, there are no other pricing changes for customers who purchase Power BI Pro and Teams Phone licenses via the Microsoft 365 and Office 365 E5 suites. This pricing update currently applies to commercial customers.
If you would like to discuss the above with the Cloud team, please contact cloud@vcg.group