Your SaaS bills are about to jump. We’re not talking small bumps here. Microsoft is pushing increases of 5-40% across its products. Google bumped Workspace pricing 16.7% and made AI features mandatory. Salesforce slipped in another 6% increase after they hit you with 9% in 2023.
The numbers tell a rough story. SaaS inflation is running at 11.4% year-over-year while general inflation sits at 2.7%. Your software costs are climbing four times faster than everything else. This SaaS price crisis affects all software spending, not just these four vendors.
This article breaks down what Salesforce, Microsoft, Google, and Atlassian are doing with pricing in 2025. You’ll see the exact percentage increases, when they kick in, and the hidden costs they’re sneaking in.
When you’re ready to push back, check the tactics that work best in renewal discussions.
Which SaaS Vendors Have Raised Prices the Most in 2024-2025?
Microsoft leads with Power BI Pro up 40% from $9.99 to $14 per user per month. Adobe sits between 17-50%. Atlassian is around 7.5% for cloud but they’re forcing Data Center customers to migrate by cranking on-premise pricing up 15-40%. Salesforce is hitting 6-9% direct increases plus bundling AI you might not want.
It’s a pattern. Average SaaS price increases are running at 8-12% annually.
73% of SaaS vendors hiked prices in 2023 and they’re at it again in 2025. Businesses spend an average of $9,100 per employee on SaaS now, up 27% year-over-year. If you’re dropping $1M annually on software, you’re looking at an extra $114,000 for the exact same stack.
Why are vendors doing this? Because they can. Joel Windels at Vertice put it plainly: “Software vendors are hiding behind the idea that inflation is high, so therefore they can charge more. Tech companies’ revenue growth is not as good as it was. Increasing prices is a relatively simple way of trying to squeeze more dollars out of their customers.”
60% of vendors mask their price increases. Another 57% hide pricing from public view entirely. You have to get on a sales call just to see what things cost.
How Is Salesforce Increasing Prices in 2025?
Salesforce is raising prices 6% for Enterprise and Unlimited Editions across Sales Cloud, Service Cloud, Field Service, and select Industry Clouds starting August 1, 2025. This comes after their 9% increase in 2023.
Here’s what matters: In 2025, price increases are contributing approximately 6.3 percentage points of 8.7% total growth. That’s 72% of growth. They’re pulling more money from existing customers rather than growing the user base.
Top-tier pricing now hits $500 per seat per month for Sales Cloud Unlimited, up from $250 five years ago. That’s doubled.
Salesforce is also pushing AI through bundling. Agentforce add-ons are priced at $125 per user per month. Whether you use these capabilities or not, you’re paying for them if you want premium tiers.
Start renewal talks 120-180 days before your contract expires to give yourself maximum leverage.
What Price Increases Is Microsoft Implementing Across Its Products?
Power BI Pro increased 40% from $9.99 to $14 per user per month on April 1, 2025. Power BI Premium Per User went up 20% from $20 to $24. Teams Phone Standard jumped 25% from $8 to $10.
Microsoft’s new commerce experience slaps a 20% surcharge on monthly billing compared to annual prepayment. For a 100-user M365 E3 deployment, this adds approximately $3,000 annually.
Dynamics 365 isn’t escaping either. Business Central Essentials increased from $70 to $80 per user per month (14% jump) on October 1, 2025. Business Central Premium went from $100 to $110 per user per month.
SQL Server received 10% price increases across Standard and Enterprise editions starting January 1, 2025. SharePoint, Exchange, and Skype for Business Server all got 10% increases on July 1, 2025.
Regional pricing varies wildly. Brazil customers face 12% increases. UK customers got -5% to -6% adjustments.
Microsoft is bundling Copilot AI across all products. Whether you want AI help or not, you’re getting it and paying for it. This tacks on $20-30 per user per month if you move to tiers that include Copilot.
The message is clear: annual billing gets you the best deal, monthly billing penalises you, and AI features are becoming mandatory.
How Is Google Raising Workspace and Cloud Pricing?
Google Workspace Business Standard increased from $12 to $14 per user per month for annual plans. That’s 16.7%. Business Starter went from $6 to $7 per user per month. Business Plus jumped from $18 to $22 per user per month (22.2%).
Price bumps hit new customers on January 16, 2025. Existing customers won’t see increases until at least March 17, 2025.
The bigger change is AI bundling. Gemini AI features are now included in all Workspace Business and Enterprise plans by default. Gemini used to cost $20-30 per user per month as an add-on.
Google killed the standalone Gemini add-on. AI is mandatory in all business tiers now. You can’t opt out.
A Google Cloud spokesperson justified this by saying “AI is foundational to the future of work.” The problem is if you’re not using AI features, you’re paying for development that benefits other customers. One partner said a customer called “in a panic saying, ‘We’re not ready for this AI. Why is it on? And when do I have to start paying more for something I don’t want?'”
What Are Atlassian’s 2025 Price Increases for Jira and Confluence?
Atlassian increased Jira Standard plans by 5%, Premium by 7.5%, and Enterprise by 7.5-10% on October 15, 2025. Confluence got the same percentage bumps. Jira Service Management took 5% for Standard and 7.5% for Premium and Enterprise.
Bitbucket got hit with 10% for both Standard and Premium.
The real squeeze comes from Data Center edition increases. Jira Software Data Center saw 15% increases for 1-1,000 users, 20% for 1,001-5,000 users, 25% for 5,001+ users, and 30% for legacy advantage pricing.
This is intentional. Atlassian is using pricing as a weapon to force Data Center customers to cloud. Stay on-premise if you need to, but you’ll pay heavily for it.
A 2,000-user Jira Cloud Premium plan at list price saw bills rise from $189,000 to $203,175. That’s $14,175 more per year for identical functionality.
Valiantys recommends renewing within 90 days of October 15 at current tier pricing to lock in rates.
How Are Vendors Using Shrinkflation to Hide Price Increases?
Shrinkflation affects 28% of SaaS contracts. Same price, reduced features or tighter usage limits.
Four tactics show up most: feature bundling, feature unbundling, non-cumulative pricing, and reduced discounting.
Feature bundling forces you to purchase unwanted functionality. AI features that used to be optional add-ons now appear as mandatory inclusions, adding $20-30 per user per month.
Feature unbundling is the opposite. Previously bundled features now show up as separate line items. Zendesk split what used to be in their core Support product into separate charges for chat, voice, and analytics. What you got in one subscription now needs three.
Non-cumulative pricing shifts usage-based pricing from cumulative credits to fixed monthly models. Zoom cut the rollover window for meeting minutes from unlimited to monthly allocations. Don’t use your monthly allocation? You lose it.
Reduced discounting means salespeople have less pricing flexibility than before. HubSpot tightened discount approval levels in 2024. The discounts you negotiated three years ago might not be available at renewal.
A service costing 10 credits can rise to 20 credits overnight, doubling your costs without changing the nominal price.
55% of SaaS vendors obscure pricing. 33% include price uplift clauses varying by industry.
What Hidden Costs Should I Watch for in SaaS Renewals?
Consumption overages create the nastiest surprises. API calls, storage, and compute usage beyond included limits generate unpredictable bills. Consumption-based pricing creates bills that can spike 50-200% above baseline.
User tier jumps trigger massive cost bumps. Going from 50 to 51 users can trigger a 40% price increase because you’ve crossed into the next tier bracket.
Migration fees are appearing more frequently. Vendors charge 5-15% “migration-related” increases. You’re paying them to move you to their new platform.
HubSpot shows how consumption traps work. They auto-upgrade users whose AI usage passes the credit limit, automatically buying additional credit packs without asking.
45.7% of all SaaS licences go unused, up 7% in 12 months. You’re paying for seats that provide zero value.
Implement monitoring alerts at 75% of budget thresholds for consumption pricing. Negotiate consumption caps in contracts to control unpredictable bills.
How Do Multi-Year Agreements Affect SaaS Pricing?
Multi-year discounts typically offer 5-15% off list price for 3-year commitments. The real benefit is price cap protection. Lock in 2-3% annual increase limits versus the 10-15% annual increases vendors are implementing.
Multi-year contracts now account for 40% of SaaS agreements, up from just 14% in 2022. More businesses are locking in rates to avoid inflation.
Early renewal leverage works. Vendors offer 10-20% discounts to lock in revenue before contract expiry. Starting negotiations 120-180 days before renewal gives you maximum leverage.
Without renewal caps, you face list-price resets or automatic 7-10% uplifts at renewal. A 30% discount negotiated upfront could vanish at renewal without price protection clauses.
Use language like “The renewal price per user will remain $100” or “All current discount percentages will apply to renewal.” Avoid vague wording like “mutually agreed pricing” or “prevailing rates at renewal.”
83% of successful renewal negotiations start at least 120 days before the renewal date. Starting less than 60 days before expiry weakens your position significantly.
FAQ Section
How Much Will My Salesforce Renewal Increase in 2025?
Expect 6-9% list price increases plus potential tier upgrades if they push AI features on you. Your actual increase might hit 15-25% when you factor in Einstein Copilot bundling and data storage overages. Start negotiations 120 days early and use competitive quotes from HubSpot or Dynamics 365 as leverage.
Is Microsoft Charging More for Monthly Billing Than Annual?
Yes. Microsoft’s new commerce experience adds a 20% surcharge for monthly billing compared to annual prepayment. For a 100-user M365 E3 deployment, this adds roughly $3,000 annually. Annual billing with auto-renewal gets you the best pricing now.
Can I Negotiate Lower Prices at SaaS Renewal Time?
Yes, especially 90-120 days before contract expiry. Tactics include cutting seat count through usage audit (20-40% reductions are common), requesting multi-year price caps, leveraging competitive alternatives, and using buying consortiums. The US federal government negotiated a 90% discount on Slack through aggregated demand.
What Is AI Bundling and Why Does It Increase My Costs?
AI bundling forces AI features like Copilot, Gemini, and Einstein into standard subscriptions regardless of customer need or usage. Google’s Gemini adds $30 per user per month in equivalent value. Microsoft’s Copilot adds $20-30 per user per month. If you’re not using AI features, you’re subsidising development for other customers.
How Can I Identify Unused SaaS Licences Before Renewal?
Use SSO login analytics to find users who haven’t accessed software in 60-90 days. SaaS management platforms like Zylo, Productiv, and Torii automate this discovery. Average organisations find 30-40% of licences are unused or underutilised. That’s immediate cost reduction.
Should I Switch to Open Source Alternatives to Avoid Price Increases?
Consider open source when vendor lock-in is low, internal technical capability is high, and total cost of ownership (including hosting, support, maintenance) is genuinely lower. Examples include Jira to Linear or Plane, Confluence to Outline or BookStack. Calculate TCO including implementation effort and opportunity cost.
How Does Consumption-Based Pricing Affect My SaaS Budget?
Consumption pricing creates bills that jump around significantly. Three out of five SaaS companies now use usage-based pricing models. Salesforce Data Cloud, Azure services, and Snowflake run on consumption models where costs can spike 50-200% above your baseline. Set monitoring alerts at 75% of budget thresholds and negotiate consumption caps.
What Percentage of IT Budget Should Go to Software in 2025?
Software now represents 14-21% of IT budgets, up from 13% five years ago. Average SaaS cost per employee ranges from $7,900 to $9,100. Benchmark against industry: technology companies spend 25-30%, manufacturing 10-15%, professional services 15-20%.
How Do I Build a Business Case for SaaS Spend Management Tools?
Calculate current software waste: 30-40% unused licences, 20% redundant applications, 10-15% savings from better negotiations. SaaS management platform ROI typically hits 5-10x in year one. Example: $2M software spend, $80K platform cost, $400K identified savings equals 5x ROI. Include cost avoidance from preventing shadow IT.
Are SaaS Price Increases Legal and Can I Challenge Them?
Price increases are legal if your contract terms allow them. Most enterprise SaaS contracts include clauses permitting annual increases of 3-8%. Review your contract for price protection clauses, required notice period (typically 30-90 days), and termination rights. If increases exceed contractual limits, you have grounds to negotiate or exit without penalty.
Which SaaS Management Platform Is Best for Tracking Price Increases?
Zylo leads for enterprise renewal management and price tracking. Productiv excels at usage analytics and shadow AI discovery. Torii offers strong workflow automation. Vertice combines spend management with procurement negotiation services and publishes the SaaS Inflation Index. Choose based on company size: SMB (Torii), mid-market (Productiv), enterprise (Zylo).
How Far in Advance Should I Start SaaS Renewal Negotiations?
Begin 120-180 days before contract expiry for maximum leverage. This timeline allows: 60 days for usage audit and seat reduction, 30 days for competitive alternative evaluation, 30-60 days for vendor negotiation rounds, and a 30-day buffer for legal review and approval. Starting less than 60 days before expiry weakens your negotiating position significantly.
These vendor price increases are part of a broader pattern where SaaS prices are rising at 4x the rate of general inflation. Understanding what Salesforce, Microsoft, Google, and Atlassian are doing with pricing helps you prepare for renewal conversations and build the business case for better cost controls.
