Microsoft will update Dynamics 365 Business Central cloud pricing on 1 November 2025. This change raises monthly per-user and device fees and increases the storage included with each licence. New cloud subscriptions will use the updated prices immediately. Existing cloud subscriptions will move to the new prices at their first renewal on or after 1 November 2025. Read on for the details and recommended next steps.
What is changing (prices and storage)
Microsoft published the following cloud pricing and storage updates, effective 1 November 2025:
- Business Central Essentials — $70 → $80 per user/month. Included storage increases 2 GB → 3 GB.
- Business Central Premium — $100 → $110 per user/month. Included storage increases 3 GB → 5 GB.
- Business Central Device — $40 → $45 per device/month. Included storage increases 1 GB → 1.5 GB.
The updated prices apply to new cloud subscriptions sold on or after 1 November 2025. For existing cloud customers, the new prices will apply at the first renewal on or after that date.
Why Microsoft is changing prices
Microsoft notes this is the first update in more than five years and points to substantial product investments since then. Key investments include:
- Copilot integration to assist with day-to-day tasks.
- Real-time AI-driven financial analysis and account reconciliation tools.
- Deeper financial and manufacturing analytics.
- Improved interoperability with the Microsoft Power Platform.
- A dedicated sustainability module and stronger localisations.
- Master data management enhancements.
Microsoft says the added capabilities and ongoing investments support the updated pricing. The company is also increasing included storage to better match modern tenant usage.
Who is affected
New customers: Any new cloud subscription purchased on or after 1 November 2025 will be subject to the updated prices.
Existing cloud customers: Existing subscriptions will transition to the new prices at their first renewal on or after 1 November 2025.
On-premises and program-specific licensing: These can have different terms and effective dates depending on licensing agreements and programs. Check your specific licensing documentation or contact your partner for details.
Practical implications for your organisation
- Review renewal dates now. Identify subscriptions that renew on or after 1 November 2025. Plan purchases and seat increases with renewal timing in mind.
- Estimate the financial impact. Model the new monthly and annual costs for your current user and device counts. Share the estimate with finance and procurement teams.
- Check storage usage. Microsoft increases base storage per licence, but high-volume tenants may still need extra capacity. Review current tenant storage and forecast future needs.
- Optimise licence assignments. Use this moment to remove inactive users, consolidate accounts, and assign lower-cost roles or device licenses where appropriate.
- Consider timing for seat expansion. If you plan to add seats before 1 November 2025, buying sooner may lock the current price for those seats until renewal.
- Evaluate feature adoption. The product now includes AI and analytics features that may deliver operational value. Consider if adopting these features reduces other costs or increases productivity.
- Talk to your partner for a tailored plan. We can run a licence and usage review, build a cost impact summary, and recommend purchase timing, license conversions, or storage add-ons.
Quick example
A team with 10 Essentials users currently pays $700 per month. Under the new pricing, that cost would rise to $800 per month. Use similar simple calculations to estimate your monthly and annual delta.
Recommended next steps (short checklist)
- Export your current licence count and renewal dates.
- Run a simple cost projection under the new prices.
- Audit tenant storage and attachments.
- Identify inactive or shared users for licence optimisation.
- Contact your implementation partner for a tailored review and next steps.
Final note
This price adjustment reflects Microsoft’s continued investment in Business Central, its AI capabilities, and deeper platform integration. We recommend reviewing your licences and renewal calendar now to control cost and ensure continuity.
