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Microsoft Power BI Pricing Changes in 2025 – New Costs From April 1st

Written by Núria E | Apr 1, 2025 9:00:59 AM

Starting tomorrow, April 1, 2025, Microsoft will implement a price increase for Power BI and Microsoft Teams Phone. This update will affect both new customers and renewals of commercial subscriptions.

Specifically, the services that will experience a price increase are Power BI Pro, Power BI Premium Per User, and Microsoft Teams Phone Standard.

In addition to the price rise for Power BI and Microsoft Teams Phone, Microsoft will introduce a significant change in the billing structure starting April 1, 2025. This change will impact all products with monthly subscription plans under annual contracts.

The announcement, officially made in Microsoft’s Partner Center, is attributed to the recent technological advancements integrated into both tools, under Microsoft Fabric.

However, in this post we reveal a method by which companies can save between 60% and 80% of the annual cost dedicated to Power BI. [Go straight to this section].

In this article, we analyze:

  • The new pricing and how it compares to current rates.
  • The potential impact on companies of different sizes.
  • Alternatives and recommendations to optimize costs.
  • Microsoft’s strategic vision behind this change.

If your organization uses Power BI or Teams Phone, it’s important to be aware of this update to make informed decisions and plan ahead.

Why Is Microsoft Increasing Power BI Prices in April 2025?

Microsoft has justified the price increase for Power BI and Microsoft Teams Phone as part of a value and product alignment strategy. According to the company, the new pricing reflects the level of innovation and functionality these tools have reached in recent years, especially since the launch of Microsoft Fabric in late 2023.

 

Since the launch of Power BI and Teams Phone, Microsoft has continuously integrated improvements that have significantly increased the value both solutions offer:

In Power BI:

  • Integration of generative AI capabilities (Copilot for Power BI)
  • Improved performance of reports and dashboards
  • Advanced features for collaboration, data governance, and enterprise-grade security
  • Integration with Microsoft Fabric, Microsoft’s new data platform paradigm

In Teams Phone:

  • Enhanced cloud communication and calling capabilities
  • Deeper integration with Microsoft Teams
  • Advanced management tools for administrators and IT departments
  • Improvements in user experience and call quality

Microsoft has emphasized that, since the last price adjustment, these solutions have evolved significantly, yet customer costs have remained stable.

This new adjustment aims to align pricing with the current value of the tools, in line with other leading solutions in the market.

 

New Power BI Pro and Premium Pricing: April 2025

Microsoft has officially confirmed that as of April 1, 2025, the prices for Power BI Pro and Power BI Premium Per User will be updated. This change will affect both new customers and license renewals.

Important: Following the release of Microsoft Fabric, some Power BI licenses have been replaced by Fabric capabilities.

Power BI Pro and PPU Pricing – April 2025


Power BI Pricing Comparison Table (Before vs. Now)

Product Previous Price New Price Increase % Increase
Power BI Pro $10/month $14/month +$4 +40%
Power BI Premium (Per User) $20/month $24/month +$4 +20%

This change reflects an update that had been pending for some time. According to Microsoft, it’s the first significant price adjustment in years and is part of a global strategy to enhance the value and functionality offered.

 

 

How Does the Power BI Price Increase Affect Businesses?

The Power BI price update represents a significant adjustment in licensing costs for many organizations—especially those with a large number of users or business models that heavily depend on data analytics.

1. Direct Impact on Budget

The $4 per-user increase in Power BI Pro and PPU licenses may seem minor individually, but it becomes substantial at scale:

  • A company with 100 Power BI Pro users will see its monthly cost rise from $1,000 to $1,400.
  • For companies using Premium Per User licenses, monthly expenses will go from $2,000 to $2,400 per 100 users.

This kind of adjustment forces finance and IT departments to revisit their licensing models and annual budgets.

2. Increased Pressure to Justify Usage

With higher pricing, many companies will need to demonstrate that Power BI usage is delivering real business value. This means:

  • Assessing which users are actively using the tool
  • Identifying underused or unnecessary licenses
  • Promoting more strategic use of reports and dashboards

Beyond being a financial challenge, this is also an opportunity to evaluate and rethink Power BI licensing internally and move toward a more cost-efficient model.

For example, there are ways to multiply Power BI’s ROI by ensuring only key users have full licenses, while others access reports through report-viewing platforms (such as Power BI Viewer).

Ultimately, companies need to shift their mindset: it’s no longer enough to simply “have licenses.” Now, the tool is expected to deliver measurable return on investment (ROI).

Changes to the Billing Structure: How Will Monthly and Annual Subscriptions Be Affected?

In addition to the price increases for Power BI and Microsoft Teams Phone, Microsoft will implement a major change in its billing structure starting April 1, 2025. This change will affect all products with monthly subscription plans under annual contracts.

What Does This Change Involve?

Microsoft will standardize how monthly billing works within annual subscriptions. Starting on that date, monthly billing plans under annual commitments will cost 5% more compared to subscriptions paid annually upfront.

This adjustment will apply to products such as:

  • Microsoft 365
  • Office 365
  • Microsoft Dynamics 365
  • Power Platform (Power BI, Power Automate, Power Apps, Power Pages, Virtual Agents)
  • Enterprise Mobility + Security
  • Windows 365
  • And other Microsoft online services

📌 Important: Not all annual subscriptions in these categories offer a monthly billing option, and the list of affected products may expand.

Why Is Microsoft Changing Prices?

The company has explained that the goal of this change is to simplify and unify the pricing model across all platforms, ensuring greater clarity for customers. Until now, some products had different pricing structures depending on the region, acquisition channel, or billing model. With this move, Microsoft is aligning its policies and promoting greater predictability in purchasing.

What Can Companies Do to Avoid the Increase?

Organizations that want to maintain their current costs have two options:

  • Switch to annual upfront billing before their subscription renewal.
  • Keep their annual subscription with a one-time payment if they’re already on that plan (in which case, they won’t be affected by the 5% increase).

Additionally, starting with this update, it will no longer be possible to change the billing frequency mid-term in three-year contracts. Changes will only be allowed at the time of renewal.

 

What To Do to Optimize Your Power BI Licensing Costs?

The Power BI price increase is pushing companies to rethink their licensing strategy, as the 40% hike will significantly impact IT budgets—especially for organizations with a large number of users.

In this context, it’s advisable for companies to explore ways to reduce the overall cost dedicated to Power BI.

How to Minimize Power BI Licensing Costs

At Bismart, as a preferred Microsoft Power BI partner, we offer the optimal solution to significantly reduce licensing costs in Power BI: Power BI Viewer. This tool allows any user to view, filter, and share Power BI reports without needing an active Power BI license.

What Is Power BI Viewer?

Power BI Viewer is a solution developed by Bismart, designed to help companies optimize their Power BI licensing costs.

The platform allows users to view, navigate, and share Power BI reports without each user needing an individual Power BI Pro or Premium license. This breaks away from the traditional licensing model and opens the door to a much more efficient way of distributing data across an organization.

In addition to offering unmatched cost savings, the solution is built to strengthen governance and security within Power BI.

Power BI Viewer also allows: 

  • Any user (internal or external) without a license to access Power BI reports and dashboards from a secure, customizable environment.
  • Controlled and secure sharing of reports with unlicensed users—both inside and outside the organization.
  • Centralized management of access and viewing permissions through a single platform, with no need for additional Power BI licenses.

How Much Can You Save On Power BI With Power BI Viewer?

For 125 users
  Power BI Pro (without Viewer) With Power BI Viewer
Price / Year 19.740,00 € 7.837,92 €
Savings / Year   11.902,08 € (60% savings)
A company with 125 Power BI users can save 60% of its Power BI budget with Power BI Viewer

For 250 users
  Power BI Pro (without Viewer) With Power BI Viewer
Price / Year 39.480,00 € 12.217,92 €
Savings / Year   27.262,08 € (69% savings)
A company with 250 Power BI users can save 69% of its Power BI budget with Power BI Viewer

For 500 users
  Power BI Pro (without Viewer) With Power BI Viewer
Price / Year 78.960,00 € 17.437,92 €
Savings / Year   61.522,08 € (78% savings)

A company with 500 Power BI users can save 78% of its Power BI budget with Power BI Viewer

* Cost Calculation Methodology: These calculations have been made under the assumption that the Power BI Embedded service is active 8 hours a day, 5 days a week, using an A1 Node. Costs may vary depending on usage time and the chosen Node. The estimation includes the costs associated with the Azure services required for the operation of the Power BI Viewer solution. The scenario considered includes: one Power BI Pro license, which allows for dashboard editing and publishing, plus 124/249/499 viewer users in each case, who access the reports through Power BI Viewer without needing individual Power BI licenses. Costs have been calculated using the Azure pricing calculator for the Europe region. Values may vary slightly depending on the region; it is recommended to check the specific pricing based on each organization’s geographic location.

How Does the Cost Reduction Work?

While the standard Power BI model requires one license per user, Power BI Viewer works differently: the entire organization accesses reports with a single Power BI Embedded license, which is used as the visualization engine.

With Power BI Viewer you only need a single Power BI Embedded service.

✅ This license can be used by all users who need to view reports.

✅ The estimated cost of the Embedded (A1) service is approximately €1 per hour. Assuming 10 hours of use per day from Monday to Friday, the monthly cost would be around €200.

Why Is This Especially Useful Now?

Amid rising prices, Power BI Viewer offers an efficient and sustainable alternative that allows organizations to:

  • Optimize Power BI license usage: Reduce the number of required licenses while maintaining access to reports.
  • Improve control over information access, avoiding redundancies and enhancing governance.
  • Expand the reach of analytics, enabling any user to access insights without technical or financial limitations.
  • Enhance the data consumption experience with an interface tailored to non-technical profiles.

With Power BI Viewer, companies can save between 60% and 80% of their annual Power BI costs

 

Without losing key functionalities like interactive report viewing, controlled access, and a user-friendly experience.
Savings are even greater in organizations with a higher number of users or more intensive use of the platform.

Beyond direct cost savings, Power BI Viewer brings additional benefits that enhance its overall value:

  • Full control over who accesses each report.
  • Easy internal or external dashboard sharing.
  • Compliance with corporate governance policies.
  • Improved user experience and reduced technical dependency.

A Strategic Response to Rising Prices

Power BI Viewer enables organizations to maintain agility in data-driven decision-making without sacrificing efficiency. It’s not just about avoiding unnecessary costs—it's about adopting a smarter way to share and consume information.

At a time when Power BI pricing has increased significantly and every euro invested in technology must be justified, Power BI Viewer stands out as a key solution for companies that want to continue advancing in business intelligence while keeping spending under control.

 

Frequently Asked Questions about Power BI and Microsoft Teams Phone Pricing Update in 2025

 


Conclusion: Is Microsoft’s Power BI price increase justified?

The Power BI price increase announced by Microsoft, effective April 1, 2025, may seem significant—especially for organizations that heavily rely on the platform. However, when we consider the broader context, the increase is not arbitrary.

Power BI has evolved steadily in recent years, introducing advanced features, artificial intelligence capabilities, deeper integration with the Microsoft 365 ecosystem, and more recently, with Microsoft Fabric. The value it offers today is far greater than when its original pricing was set.

📌 Does that mean the price increase is justified?

From a product perspective—yes. Power BI is one of the most comprehensive and competitive Business Intelligence platforms on the market.
But from the customer’s point of view, the budget impact is real and must be managed carefully.

Fortunately, there are alternatives that allow organizations to continue using Power BI strategically without seeing costs skyrocket.
Solutions like Power BI Viewer help maintain agile access to data, drastically reduce the number of licenses needed, and optimize investment—without sacrificing quality or security.

In short, the new landscape demands more informed, strategically sound decisions.
Organizations that strike the right balance between Power BI usage and smart license management will be better positioned to maximize the value of their data—without incurring unnecessary costs.

 

Antes de irte...

Si aún no estás al tanto de qué es Microsoft Fabric y qué cambios supone para las empresas, no te pierdas nuestra Guía Completa sobre Microsoft Fabric. Descárgala de forma gratuita aquí: