Microsoft is once again increasing the cost of its services—this time with a 5% price hike on annual commitments paid monthly, effective April 1, 2025. Businesses relying on Microsoft 365 will feel this impact, especially if they don’t switch to an annual prepaid plan before their renewal date.

Microsoft’s Price Increases: A Growing Concern

Many IT professionals and MSPs have voiced frustration over these changes, calling them yet another example of Microsoft shifting the financial burden onto customers. A common sentiment on industry forums is that Microsoft’s move to prepaid annual commitments makes it harder for businesses to manage cash flow and puts partners at risk of carrying the financial weight if a client defaults.

As one Reddit user put it:

“Microsoft was a big part of pushing ‘Only X dollars per month.’ Now they’re reversing that approach and forcing customers into long-term prepaid contracts.”

Another MSP professional noted:

“If a customer goes broke and stops paying for their ‘annual commit, pay monthly’ seats, Microsoft still expects the partner to pay the full year.”

How to Avoid the Price Increase

If you wish to continue using Microsoft 365, you can move to an annual prepaid plan before your renewal date to lock in the current pricing and avoid the additional 5% fee. However, if you’re looking for a more affordable and flexible alternative, consider switching to Thexyz Email, Open-Xchange, or YMOZ SOGo.

Affordable and Reliable Alternatives

1. Thexyz Email – Secure, Private, and Ad-Free

  • A professional-grade email platform with premium spam protection.
  • No advertisements or tracking—your data stays private.
  • Seamless webmail experience with mobile and desktop sync.
  • Custom domains and unlimited email aliases.
  • 25GB mailbox storage, expandable if needed.

2. Open-Xchange (OX App Suite) – Full Productivity Suite

  • A powerful alternative to Microsoft 365, offering email, calendar, and cloud storage.
  • Web-based access from anywhere with intuitive mobile and desktop support.
  • Integrated collaboration tools like document editing and file sharing.
  • More affordable than Microsoft’s Business and Enterprise email offerings.

3. YMOZ SOGo – Open-Source Email & Collaboration

  • Built on open-source software for maximum customization.
  • CalDAV & CardDAV support for easy synchronization across devices.
  • Lightweight and efficient—ideal for businesses seeking a straightforward email solution.
  • Cost-effective pricing with enterprise-grade reliability.

Why Switch Now?

Microsoft’s recent price increase is just another example of their growing costs and restrictive subscription models. Many businesses are already dealing with locked-in commitments and increasing licensing complexities. By switching to Thexyz, you gain:

  • Better pricing with no unexpected increases
  • Greater flexibility—no annual lock-in or hidden fees
  • Privacy-first solutions without invasive tracking
  • High-performance email and collaboration tools

Make the Move Before the April 1, 2025 Increase

If you’re looking to avoid Microsoft’s price hikes while securing a better, more affordable email solution, now is the perfect time to switch. Don’t wait until your renewal date—migrate to Thexyz, OX App Suite, or YMOZ SOGo today and future-proof your business against unnecessary price increases.

Ready to make the switch? Contact us today to explore your best email alternative!