Microsoft Price Increase that's not an Increase, at least for now!

In Important updates are to Microsoft subscription pricing that will take effect in the coming months. These changes reflect adjustments from Microsoft due to currency exchange rate corrections and regular Microsoft pricing reviews. However, this is not a straightforward price increase and if you're on a certain plan, it isn't a price increase at all. Here's all you need to know:

Key Changes to Microsoft Subscription Pricing (all products)

1. Currency Exchange Rate Adjustment (Effective 1st February 2025):

•  Microsoft is reducing all UK subscription prices by 5% due to a currency correction.
•  This adjustment aligns with current exchange rates and will be reviewed by Microsoft every 6 months.

2. Annual Commit, Monthly Payment Pricing Increase (Effective 1st April 2025):

•    Microsoft will increase prices by 5% for all subscriptions with an annual commitment but are paid monthly.
•    This increase will not apply to subscriptions paid annually upfront.

3. Timing of Price Changes:

• All price changes will only take effect at the renewal of your agreement. Your current pricing remains unchanged until your next renewal date.

How this affects you:

• If you are on a monthly payment, annual commitment plan, you will see the 5% price increase reflected in your subscription upon renewal on or after 1st April 2025. You can switch to an annual upfront payment at the time of your renewal to avoid this price increase, please speak to your Customer Engagement Manager to set this up.
• If you are on an annual upfront payment plan, your subscription pricing will remain unchanged.
• From 1st February 2025, you will benefit from the 5% reduction due to currency adjustment for any new agreements or renewals.

We understand that this is a lot to get your head around, so we're providing some further guidance and information which hopefully will make everything clearer. Please refer to the email about this announcement where we have included a video explainer and a document which includes example scenarios to help you understand what the pricing change means for your business.

Next Steps:

Performance issues within the Dynamics 365 Business Central environment can also impact the Sales Order Agent. High system load, insufficient resources, or network latency can lead to delays or failures in job processing. It is important that you and your team keep an eye on your Dynamics 365 Business Central System so it can handle the demands placed upon it. Routine maintenance and performance tuning can help prevent any issues. 

To ensure clarity and assist with any questions, we’re here to support you. If you'd like to discuss how these changes affect your subscription or explore alternative billing options, please contact your Customer Engagement Manager.