Microsoft’s new pricing model to be effective from Nov 1, 2025

In its latest round of pricing adjustments for online services, Microsoft is focusing on standardization across volume licensing programs. Starting November 1, 2025, the company will expand its consistent pricing model (already used for Azure) to include all online services purchased under Enterprise Agreements, and the Microsoft Products and Services Agreement.

With this update, customers will see a single price for online services across all Price Levels, aligned with the rates published on Microsoft.com.

Under the revised model, Microsoft will eliminate the previously tiered price level discounts (Levels A through D) and introduce a unified starting price for all Online Services. The intent of this adjustment is to ensure pricing consistency across all purchasing channels.

These pricing changes will take effect either at the time of the customer’s next agreement renewal or upon the purchase of new Online Services not already listed on their Customer Price Sheet, if such purchases occur after November 1, 2025.

Notably, this pricing update pertains exclusively to Microsoft Online Services. Affected products include, but are not limited to, Microsoft 365, Dynamics 365, and offerings related to Security, Compliance, Identity, and Management.

This change does not apply to Microsoft’s on-premises software products.

Microsoft in its statement said -

“We strongly encourage customers to -

·         Review their current licensing agreements and pricing levels.

·         Assess the potential impact of the pricing change on future renewals and purchases.

·         Engage with a knowledgeable Microsoft Licensing Specialist to discuss strategic options and ensure alignment with budgetary planning.”