Beginning April 1, Power BI Pro will increase from $10 to $14 per user per month (representing a 40% increase), while the price of Power BI Premium will grow from $20 to $24 per user per month (a 25% increase).

Analysts point out that it seems to be a tactical move by Microsoft to reduce the pricing gap between Microsoft 365 (M365) edition 3 (E3, which does not come with Power BI Pro) and M365 E5 (which does).

E5 costs $54.75 user/month (paid yearly), while E3 costs $33.75 user/month (paid yearly). Info-Tech Research Group noted that most customers need a 30% to 35% discount on the E5 license to match the renewal pricing for M365 E3.

“Although Microsoft justifies the hike as reflective of their continued innovation, the underlying strategy appears aimed at driving customers toward their all-in and most robust suite,” Adam Mansfield, UpperEdge commercial advisory practice leader, told CIO.

If BI tools get more expensive, Microsoft can pitch E5 as a more ‘economical’ path forward, he noted. Still, customers need to make sure they have negotiated the right price and have price protections in place for Microsoft 365 E5 if they make the move.  Read On: