Understanding Microsoft’s Price Increase
Effective April 1, 2025, Microsoft will increase prices by 5% for monthly billing on annual CSP subscriptions. This move encourages the switch to upfront annual billing for lower rates, aligning with Microsoft’s focus on committed annual revenue. MSPs may have already moved in part to annual commit, but as many MSPs bill services monthly, this change will impact operations.
For MSPs and licensing providers, this adds further complexity to license management and renewals, particularly for distributed or non-co-termed licenses. Without the right tools, managing these shifts can lead to costly errors and missed optimization opportunities. Anecdotally, MSPs often are paying for more Microsoft licenses than they are getting paid for, and in many cases end-Customers are paying for more licenses than they need.
Potential Impact on Microsoft MSPs
This change will bring further workload to stretched MSPs, planning and communication needs to happen early to avoid cost impact and customer dissatisfaction.
Increased Costs: Monthly payments on annual terms could result in significant cost hikes for clients.
License Oversights: Late user removal or unused license renewals could lock clients into unnecessary expenses for an entire term, with payment being needed up front.
Rising Complexity: Managing distributed licenses with varying renewal dates demands a proactive system to avoid costly mistakes.
How can we help?
Atria helps automate and streamline the processes associated with managing Microsoft 365 subscriptions. If you are struggling with renewals, or feel like you are stuck between Microsoft and your Customers, we can potentially help.
Atria subscription management is designed for Direct Microsoft MSP Partners, it allows the management of subscriptions to be delegated safely to end-customers, or to your helpdesk.
Eliminate Licensing Waste: With nightly reviews, Atria’s Subscription ‘Right Sizing’ feature ensures clients only pay for what they use.
Stay Proactive: Customizable notifications alert MSPs and clients about subscription changes, renewals, and unused licenses.
Avoid Errors: Timely alerts prevent costly oversights, such as renewing licenses that are no longer needed.
Key Features:
Right-Sizing Automation: Detect unused licenses nightly to reduce renewal costs.
Subscription Notifications: Stay informed of changes, additions, and expirations with detailed email alerts.
Renewal Confirmations: Avoid unintentional service interruptions with clear notifications before renewals.
Read more about our Microsoft M365 Management Features
Conclusion: Proactively Manage Costs Now
Microsoft’s price increase doesn’t have to catch your business off guard. By leveraging Atria’s automation and insights, MSPs can:
- Reduce licensing waste and unnecessary expenses.
- Offer a differentiated, proactive service to clients.
- Focus on strategic initiatives instead of manual subscription oversight.
Ready to transform your license management strategy? Contact us for a chat and get a demo from one of our Customer Success engineers.
