Microsoft 365 Price Increase Announced: What Organizations Need to Know
This blog was originally published by Softchoice, a World Wide Technology co.
These changes come alongside new built-in AI, security, and management capabilities being added to the suites throughout 2026. Some examples of what's being added into the suites include:
AI-Powered Productivity
Copilot Chat with Agent Mode will be integrated across Word, Excel, PowerPoint, and Outlook, enabling more sophisticated document creation and data analysis workflows. The enhancement allows users to work iteratively with AI to develop high-quality outputs directly within their productivity applications. IT administrators will have access to enterprise-grade controls for managing and measuring Copilot usage.
Advanced Security
Microsoft Defender for Office 365 Plan 1 will be added to Office 365 E3 and Microsoft 365 E3, providing enhanced protection against phishing, malware, and malicious links across email and collaboration platforms. Business Basic and Business Standard customers will receive URL protection for known malicious websites. For Microsoft 365 E5 customers, Security Copilot will deliver AI-driven security capabilities with over 70 pre-built agents integrated into Defender, Entra, Intune, and Purview workflows.
Endpoint Management
Microsoft 365 E3 and E5 suites will gain additional Intune capabilities, including Remote Help, Advanced Analytics, and Intune Plan 2 features. E5 customers will also receive Endpoint Privilege Management, Enterprise Application Management, and Cloud PKI to strengthen security and compliance postures.
Which plans are impacted?
The pricing adjustments will apply across Microsoft's commercial product portfolio, including:
- Enterprise suites: Office 365 E3/E5, Microsoft 365 E3/E5, and Enterprise Mobility + Security (EMS) E3/E5
- Business suites: Business Basic, Business Standard, and Apps for Business
- Frontline worker plans: Microsoft 365 F1 and F3
- Government offerings: Microsoft 365 G3/G5 and related SKUs
- Standalone products: Windows Enterprise, Microsoft 365 Apps, and Entra P1/P2
Exact impact will depend on your specific mix of SKUs, the inclusion or absence of Teams, your licensing program, and your renewal dates.
What this means for your organization
The July 1, 2026 effective date creates specific planning requirements including:
- Renewals on or after July 1, 2026 to reflect the new list prices.
- New subscriptions or net-new seats added after that date to be priced at the updated rates.
- Different impact by role and license type – for example, frontline or SMB plans may see a different percentage change than enterprise suites.
- For renewals before July 1, 2026, organizations can lock in current pricing through their next renewal cycle by renewing or extending agreements before the effective date.
The good news, you still have time to plan. Microsoft has intentionally announced these changes well in advance so customers can review their environment, adjust licensing, and make informed decisions.
If you'd like to better understand how these Microsoft 365 pricing changes affect your organization and how to use them as a catalyst to modernize and secure your environment, WWT is here to help.
Connect with your WWT account team or contact us to schedule a Microsoft 365 licensing and optimization review. Together, we'll make sure you're prepared for July 1, 2026 and positioned to get the most out of your Microsoft investment in the years ahead.
Read the official Microsoft communication here.