November 21, 2025
WHAT'S HAPPENING:
Microsoft to remove price level discounts for Online Services
WHEN:
November 1, 2025
As previously announced, starting November 1, 2025, Microsoft will introduce a structural change to its pricing model for Online Services sold through volume licensing agreements such as the Enterprise Agreement (EA) and Microsoft Products and Services Agreement (MPSA).
The update will retire the existing tiered discount levels (A through D) and replace them with a single, unified starting price for all Online Services. This new approach aims to standardize pricing across all purchasing channels, aligning the entry price with the Level A list price published on Microsoft’s website.
Customers currently receiving Level B, C, or D discounts will see their pricing adjusted to match Level A rates. These changes will apply at the time of agreement renewal or when purchasing new Online Services not already listed on their Customer Price Sheet after November 1, 2025.
This update affects only Microsoft Online Services, including Microsoft 365, Dynamics 365, and solutions for Security, Compliance, Identity, and Management. On-premises software products are not impacted.
WHAT'S HAPPENING:
Microsoft 365 Enterprise Plans to be sold both with or without Teams
WHEN:
November 1, 2025
As part of its recent agreement with the European Commission, Microsoft is introducing new licensing and pricing changes for Microsoft 365, Office 365, and Microsoft Teams, effective November 1, 2025. These changes are designed to enhance customer choice and flexibility by offering enterprise and business suites both with and without Teams going forward and leaving the choice to the customer on whether or not to include in their Microsoft 365 bundle. Microsoft will also maintain globally consistent licensing structures to simplify decision-making and procurement processes.
To comply with the agreement, Microsoft is establishing minimum price deltas between suite versions with and without Teams, ranging from $1.07 to $8.55 (USD MSRP), depending on the product tier. Standalone Teams offerings will be priced at or above these deltas.
WHAT'S HAPPENING:
New Security and Compliance Add Ons for Microsoft 365 Business Premium
WHEN:
September 1, 2025
Microsoft is enhancing its licensing options for small and medium businesses with new add-ons to Microsoft 365 Business Premium. In addition to core productivity and security features like Office Apps, Teams, and Microsoft Defender for Business, SMBs can now choose from three new licensing packages: - Microsoft Defender Suite ($10/user/month, USD MSRP)
- Microsoft Purview Suite ($10/user/month, USD MSRP)
- Combined Defender and Purview Suite ($15/user/month, USD MSRP)
These add-ons deliver enterprise-grade security, compliance, and identity protection, with capabilities such as advanced identity governance, endpoint protection, insider risk management, data loss prevention, and AI data security posture management. Licensing is capped at 300 seats per customer, and mixed licensing for endpoint security is not supported. Tenants will default to Defender for Business unless all users are licensed for Defender for Endpoint Plan 2. Existing E5 Security Suite customers can transition to the new Defender Suite starting in October 2025.
WHAT'S HAPPENING:
Simplified Microsoft 365 Copilot Licensing & Additional Functionality
WHEN:
October 10, 2025
Microsoft is simplifying licensing for Microsoft 365 Copilot to deliver more value and reduce complexity for customers. As of September 1, 2025, all Copilot Studio capabilities, including agent flows, AI tools, and deep reasoning) are now included in the Microsoft 365 Copilot license when used in employee-facing scenarios by licensed users. Additionally, beginning October 10, 2025, role-based Copilot solutions for sales, service, and finance will be bundled into the Microsoft 365 Copilot license at no extra cost, eliminating the need for separate $20 step-up SKUs.
WHAT'S HAPPENING:
Consolidated Reporting Services Under Power BI Report Server with SQL 2025 Release
WHEN:
Q4 2025
Starting with SQL Server 2025, Microsoft is consolidating its on-premises reporting platforms by making Power BI Report Server (PBIRS) the default solution. SQL Server Reporting Services (SSRS) will no longer receive new versions, though SSRS 2022 will continue to be supported through January 11, 2033. Customers can install PBIRS using their SQL Server 2025 license key, and it will be available across all paid editions, including those without Software Assurance. While SSRS remains usable with newer SQL Server database engines, adopting PBIRS ensures access to modern features and lifecycle support. Free Developer and Evaluation editions are available for testing and planning the transition.
WHAT'S HAPPENING:
Windows 10 Extended Security Updates Available for Purchase
WHEN:
September 1, 2025
Microsoft is now offering Windows 10 Extended Security Updates (ESU). Starting September 1, 2025, customers can purchase ESU coverage for one, two, or three years, ensuring continued access to monthly Critical and Important security updates even after Windows 10 reaches its official end of support on October 14, 2025. The ESU program is a paid annual subscription, starting at $61 USD per device for the first year. Pricing will double each year. There is no minimum purchase requirement but ESUs can only to devices running Windows 10 version 22H2. While ESU includes security updates, it does not provide new features, non-security fixes, or general technical support.
WHAT'S HAPPENING:
Change in Effective Date for Dynamics 365 Business Central Price Increase
WHEN:
November 1, 2025
As we shared in June, there is a price increase coming for Dynamics 365 Business Central licensing. To allow additional time for this change to be communicated to customers, the price adjustment has been pushed back from October 1, 2025 to November 1, 2025.
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