Price Change Notification (PCN)

Upcoming Microsoft 365 Licensing Changes and Options

Dear Clients,

XSTRA is required to inform you of upcoming changes to Microsoft 365 licensing and pricing that may impact your organization.

Microsoft 365 Price Adjustments Effective April 1, 2025

Effective April 1, 2025, Microsoft is implementing several pricing changes across its Microsoft 365 services:

• Teams Phone Licenses: Prices will increase by 25%. Specifically:
  • Teams Phone Standard will rise from $8 to $10 per user per month.
  • Teams Phone Standard for Frontline Workers will increase from $4 to $5 per user per month.
  • XSTRA has not promoted Teams Phone, so currently, most Clients are not impacted.
• Billing Plan Premium: A 5% premium will be applied to all new and renewing monthly billing plans for annual subscriptions. This means that customers opting for monthly payments on annual commitments will pay 5% more than those who choose to pay upfront for the entire year.

Our Commitment to Your Licensing Model

We will maintain your existing licensing model unless we hear otherwise from you.

Opportunities for Cost Savings with Long-Term Commitments

For clients interested in cost savings, transitioning to annual or triennial commitments can offer financial benefits:

• Annual Commitment: Locking in rates for a year can protect against potential price increases and may provide discounts compared to monthly billing.
• Triennial Commitment: Committing to a three-year term can offer even greater savings and price stability.

Please note that while these longer commitments can lead to cost reductions, they require a firm commitment for the duration of the term, and substantial capital outlay upfront.

Ongoing Changes in Microsoft’s Licensing Structure

Microsoft periodically adjusts its licensing structures and pricing, often introducing incremental increases. XSTRA understands that these changes can be frustrating; however, they are beyond our control, and we must pass these costs on.

Next Steps

If you are interested in exploring annual or triennial licensing options, or if you have any questions regarding these changes, please contact our team.

We are here to assist you in navigating these changes and ensuring that your organization continues to receive the best value from your Microsoft 365 services.

Thank you for your continued trust in XSTRA.

Resources: