Executive Summary
- As of February 1st 2025, Microsoft will be lowering the price of its Commercial Cloud products (including Microsoft 365) by 5-6% in the GBP currency.
- These lower prices are being applied as a result of a semi-annual process whereby Microsoft locks its global pricing to the US dollar and adjusts other currencies.
- The lower prices will be applied to all new and renewing Microsoft 365 subscriptions from February 1st 2025 and on.
Introduction
We often talk about price rises on the Get Support blog, but today’s topic makes a nice change.
Microsoft recently announced some adjustments to its Commercial Cloud pricing, which went into effect on February 1st, and we’re here to break it all down.
The short version is that the price of Microsoft’s Commercial Cloud (including Microsoft 365 licenses) will actually go down by 5-6% to align it to the US dollar pricing.
Read on for the full details: what’s changing, what it all means, and what (if anything) you need to do.
What’s changing?
From 1st February 2025, you’ll see a slight adjustment to the price of Microsoft’s Commercial Cloud services in British Pounds for new and renewing licenses.
The good news, of course, is that prices are actually going down a little in the UK, between 5% and 6%. It’s not a massive price drop, but every little helps, right?
Why is this change happening?
A couple of years ago, Microsoft announced that they would essentially peg the cost of its Commercial Cloud products to the US dollar. At the time, it meant an increase in prices for UK customers.
This year, however, this lock to the US dollar has resulted in a 5-6% decrease in prices in the British Pound. Microsoft are making this change to align its pricing across the globe and make it consistent and fair for everyone. This is a semi-annual process.
What is the Commercial Cloud?
Commercial Cloud is the umbrella term given to all of Microsoft’s cloud-based business offerings.
Commercial Cloud covers products and platforms like Microsoft 365 (no introduction necessary), Azure (Microsoft’s cloud computing platform), Dynamics 365 (a family of enterprise applications), and a whole host of other cloud-based tools and services.
Put simply, if it’s Microsoft business software and it’s delivered over the internet, it’s probably part of the Commercial Cloud.
Will this change affect you?
Whether or not you’ll benefit from this small price drop will depend on where you are with your current Microsoft 365 subscription.
- New subscriptions and renewals: The 5-6% price decrease will apply to any new Microsoft Commercial Cloud subscriptions that start on or after February 1st, 2025. It will also apply to any existing subscriptions that are due for renewal on or after that date.
- Existing subscriptions: If you have an existing Microsoft Commercial Cloud subscription that isn’t up for renewal until after February 1st, 2025, you won’t see the price decrease reflected immediately-but you will at your next renewal.
That’s all there is for this update-just a quick change that we wanted to share with our clients.
Of course, if you have any questions about what this means for your organisation, you can always ask your Get Support Customer Success Manager, or call us on 01865 594000.
