Microsoft is changing its pricing policy for Online Services within volume licensing programs effective November 1, 2025. Critics say this amounts to a significant price increase for both new and existing customers.
Whereas volume licenses with different price categories existed until now, this system will be completely abolished. All customers who use an Enterprise Agreement or a Microsoft Products and Services Agreement will now pay the prices published by Microsoft on its website.
Until now, there were four price categories, A to D, with larger customers eligible for discounts of 6 to 12 percent. This benefit will disappear, as all organizations will be classified in the lowest category, A. Nothing will change for existing contracts until they need to be renewed, but the higher rates will apply to new purchases or renewals. In practice, this means a price increase for many organizations.
The change affects all Microsoft online services, including Microsoft 365, Dynamics 365, Windows 365, and various security, compliance, and identity products. Customers who run software on-premises will not be affected, nor will the US government and educational institutions worldwide. For them, the current price lists will remain in place.
Microsoft is presenting the change as a step toward transparency and simplification of licensing models. According to the official announcement, the goal is to align all sales channels and eliminate price differences. The new pricing structure is therefore in line with the approach previously applied to Azure.
Concerns about freedom of choice and privacy
Critics point out to Heise that Microsoft is effectively implementing a price increase, as the volume discount system is being discontinued. The change is also part of a broader strategy to steer customers toward its cloud environments. This policy has raised concerns in several countries about freedom of choice and data privacy.
For organizations facing contract renewals in 2025 or 2026, the impact could be significant. Microsoft advises customers to talk to their account team or regular partner to figure out the financial implications.