Microsoft’s April 2025 announcements bring significant updates that directly impact Dynamics 365 users. As part of the broader Microsoft licensing changes 2025, businesses will need to adapt to price increases, product transitions, and a renewed focus on cloud-first solutions. Here’s a breakdown of the key updates and what they mean for your organization.
Key Microsoft Licensing Changes in 2025
Price Increase on Monthly Billing Plans
tarting April 1, 2025, Microsoft implemented a 5% price increase for monthly billing options on annual and triennial subscriptions across various Microsoft products, including Dynamics 365. This change is aimed at standardizing pricing across different purchasing channels.
- Who is affected? Organizations using monthly payments under longer-term commitments (annual/triennial).
- How to avoid the increase? Opt for upfront annual or triennial payments, which are not subject to the new pricing.
This adjustment is a key part of the Microsoft licensing changes 2025, encouraging businesses to commit to longer terms and align with Microsoft’s subscription-first strategy.
Transition to the Cloud for Business Central
Another major change is the availability shift for Dynamics 365 Business Central on-premises:
- New customers will only be able to purchase the on-premises version until March 31, 2025.
- Existing customers with an active enhancement plan will still be able to upgrade to newer versions of the on-premises solution after that date.
This move reflects Microsoft’s push toward a cloud-first model, reinforcing that future innovation and support will largely focus on cloud-based Dynamics 365 solutions.
Dynamics 365 2025 Release Wave 1 Highlights
The 2025 release wave 1, covering updates from April to September 2025, introduces AI-powered capabilities and user experience improvements across the Dynamics 365 suite:
- Smarter goal tracking and productivity tools with AI Copilot enhancements.
- Improved user interfaces for managing pipelines and customer engagement.
- AI-powered case management, intelligent routing, and Copilot integrations for agents.
- Focused improvements on service quality and efficiency.
Dynamics 365 Finance & Supply Chain Management
- Enhanced tax automation and regulatory compliance tools.
- Embedded AI to streamline workflows and reduce manual processing.
These features not only boost productivity but also align with Microsoft’s long-term plan to infuse AI and automation across all business applications.
Power BI Premium Transitioned to Microsoft Fabric
While the Power BI Premium per capacity (P-SKUs) has been retired as of January 31, 2025, it’s worth noting that it now falls under the new Microsoft Fabric platform (F-SKUs). Organizations using Power BI Premium must transition to Fabric to continue benefiting from modern data and analytics tools. For more detail, check out our full article on this topic.
Recommendations for Dynamics 365 Users
To prepare for and adapt to the Microsoft licensing changes 2025, businesses should:
- Review your current billing setup and consider switching to annual or triennial upfront payments to avoid the 5% increase.
- Plan your transition if you’re still running Business Central on-premises—cloud migration may soon be unavoidable.
- Explore new Dynamics 365 features from the 2025 release wave 1 to stay competitive and increase efficiency.
- Evaluate licensing needs in light of Microsoft’s ongoing shift toward AI, cloud, and platform unification.
Final Thoughts
The Microsoft licensing changes 2025 mark a significant shift, especially for organizations using Dynamics 365. From pricing updates to product evolution, staying informed and proactive will be essential to ensure cost-effective and future-proof business operations.
If you need help assessing how these changes affect your business or planning your next steps in Dynamics 365, feel free to reach out to our team.
