Microsoft's new flexible billing for Microsoft 365 Copilot allows monthly payments for annual subscriptions, but at 5% higher cost, still necessitating an annual contract.
Analyst Mary Jo Foley noted that this change responds to customer feedback for better cash flow, but it doesn’t address their desire for full flexibility without an annual commitment.
Microsoft reported a revenue increase of 16% to $65.6 billion in FY25 Q1, attributing the changes in billing structure to a need for consistency and transparency across platforms.
Customers who wish to avoid the 5% price increase need to renew with an upfront payment before April 1, 2025, unless their licensing anniversary is sooner.
Collection
[
|
...
]