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By Cian Fitzpatrick | 3rd June 2025
Microsoft has announced new pricing changes that came into effect on the 1st April 2025. While the adjustments aren’t seismic, resellers have been dealing with the impact of these changes. Specifically, Microsoft has applied a 5% increase to monthly billing on annual and triennial term subscriptions across many Microsoft 365 SKUs.
On the surface, it’s a subtle shift.
But for resellers operating on slim margins and managing customer renewals, the cumulative effect has the potential to be significant. In this blog, we break down what’s changing, what it means for your margins and how Topsec Cloud Solutions can help you maintain profitability and strengthen your value to customers.
Microsoft’s 2025 update is part of a broader move to standardise billing practices and incentivise upfront payments. The table below summarises the key differences:
Subscription term | Billing option | Price change description | Impact on cost to customer |
Annual or triennial term | Monthly billing | Approximately 5% price increase compared to upfront annual payment | Higher monthly cost |
Annual or triennial term | Upfront annual payment | No price increase; base price maintained | Cost savings by paying upfront |
New subscription options | Three-year commitment | Introduced as a new option for some licenses | Potential longer-term price stability |
Reference: Microsoft’s official announcement outlines a 5% price increase for monthly billing on annual and triennial New Commerce Experience (NCE) subscriptions. It also introduces new three-year subscription options aimed at offering greater long-term value.
https://learn.microsoft.com/en-us/partner-center/announcements/2025-april
For resellers, the implications are both financial and relational. A 5% increase on monthly billing for annual plans might not sound like much in isolation. However, when customers are already managing tight budgets, even a modest jump can trigger pushback or force a rethink of their licensing model.
Resellers must now lead informed, consultative conversations: Should a customer switch to annual payment to save money? Are triennial subscriptions worth locking into? How do these changes affect your margin structure and renewal strategy?
With multiple billing styles now carrying distinct pricing impacts, the challenge becomes one of clarity. And it’s in this space that effective communication offering added value becomes a highly strategic move. This is where Topsec’s offering plays a strategic role.
At Topsec Cloud Solutions, we’re committed to helping resellers turn this challenge into an opportunity. You don’t need to completely change your business model to adapt. By layering in high-demand managed services, you can boost margins, simplify delivery, and build deeper customer relationships.
Here’s how we support our partners:
Topsec helps you grow your business. By adding managed email security, resellers can shift from simply selling licenses to becoming trusted advisors. It’s a smart way to offer more value while standing out in a competitive market.
A managed email security service:
By embedding Topsec in your portfolio, resellers send a clear message to clients: “We don’t just maintain your licenses; we protect your business.”
While Microsoft’s pricing update may feel like a hurdle, resellers who are willing to adapt can turn this change into opportunity. Resellers who double down on value and service, not just licensing, will thrive.
Partnering with Topsec gives you:
Contact our team today to find out more. We’d welcome the opportunity to share details of how we work together with resellers in a win/win way.
