Upcoming Microsoft 365 Pricing Changes – What You Need to Know and How to Prepare

As your trusted CSP Indirect Provider, we are committed to keeping you informed about important updates that impact your business and your customers. Microsoft has announced upcoming pricing adjustments for Microsoft 365 and Office 365 plans, effective 1 July 2026. These changes reflect Microsoft’s continued investment in innovation, security, and AI-driven productivity tools that empower businesses to thrive in a rapidly evolving digital landscape.

In this blog, we’ll break down what’s changing, why it matters, and most importantly, what you can do now to stay ahead and maximize value for your organization and your customers.

What’s Changing?

Starting 1 July 2026, the following price adjustments will take effect:

• Business Basic: $6 → $7
• Business Standard: $12.50 → $14
• Business Premium: $22 → $22 (No change)
• Office 365 E1: $10 → $10 (No change)
• Office 365 E3: $23 → $26
• Microsoft 365 E3: $36 → $39
• Microsoft 365 E5: $57 → $60
• Microsoft 365 F1: $2.25 → $3
• Microsoft 365 F3: $8 → $10

While some plans remain unchanged, others will see moderate increases. These adjustments are designed to align pricing with the enhanced capabilities and security features that Microsoft continues to deliver.

Microsoft 365 Business Premium, for example, remains at $22 because it already represents a highly optimized value proposition for small and medium businesses. Unlike Business Basic or Standard, Business Premium includes advanced security features such as Microsoft Defender for Business, Intune for device management, and conditional access policies—capabilities that are typically found in enterprise-grade plans. These features significantly enhance protection against cyber threats and simplify compliance without requiring additional add-ons. Since Business Premium was priced to reflect these premium capabilities from the start, Microsoft determined that no adjustment was necessary to maintain its competitive positioning and deliver exceptional ROI for SMB customers.

Why Are Prices Increasing?

Microsoft has consistently invested in improving its cloud offerings to meet the demands of modern businesses. Over the past few years, we’ve seen significant advancements in:

• AI-powered productivity tools like Copilot, which streamline workflows and boost efficiency.
• Enhanced security and compliance features to protect businesses from evolving cyber threats.
• Collaboration improvements through Teams, SharePoint, and integrated apps that enable hybrid work.

These innovations deliver measurable value, helping organizations stay competitive and secure. The pricing changes reflect these ongoing investments and ensure Microsoft can continue to innovate at scale.

What Does This Mean for Partners and Customers?

For partners, this is an opportunity to engage with customers proactively and position yourself as a trusted advisor. For customers, it’s a chance to review your current licensing strategy and optimize for cost efficiency and business growth.

Actionable Tips to Prepare Ahead of 1 July 2026

Here are practical steps you can take now:

1. Review Current Subscriptions

Take stock of your existing Microsoft 365 and Office 365 licenses. Are you using all the features included in your plan? Are there opportunities to consolidate or upgrade to a plan that better fits your needs? For example, moving from multiple standalone services to a bundled suite can often deliver better value.

2. Lock in Current Pricing

If you anticipate growth or additional licenses in the coming months, consider renewing or extending agreements before July 1. Annual or multi-year commitments can help you secure today’s pricing and avoid the upcoming increase.

3. Explore Annual Billing Options

Monthly billing offers flexibility, but annual billing can provide cost savings and predictability. Discuss with your account manager whether switching to annual terms makes sense for your organization.

4. Optimize Licensing

Analyze usage data to identify underutilized licenses. Removing unused seats or adjusting plans can offset the impact of price increases. Partners can assist customers with license optimization assessments.

5. Leverage Value-Added Services

Microsoft 365 is more than just email and productivity apps. Features like advanced security, compliance tools, and AI-driven insights can reduce costs elsewhere in your business. Make sure you’re taking full advantage of these capabilities.

6. Communicate Early and Often

For partners, now is the time to start conversations with customers. Transparent communication builds trust and positions you as a strategic advisor. Share the benefits of Microsoft’s ongoing innovation and help customers see the value behind the pricing changes.

How We Can Help

As your CSP Indirect Provider, we’re here to support you every step of the way. Our team can help you:

• Conduct license optimization reviews to ensure you’re getting the most value.
• Provide pricing simulations to forecast the impact of changes on your budget.
• Offer strategic guidance on bundling, annual commitments, and growth planning.
• Deliver training and enablement for partners to communicate these changes effectively.

Looking Ahead

Change can feel challenging, but it also brings opportunity. Microsoft’s pricing adjustments reflect a commitment to delivering cutting-edge tools that empower businesses to work smarter, stay secure, and innovate faster. By planning ahead, you can turn this update into a strategic advantage.

Next Steps

• Partners: Schedule a call with your account manager to discuss strategies for customer engagement and growth.
• Customers: Reach out to your partner or our team to review your current licensing and explore options to lock in savings.

Don’t wait until July—start planning today to ensure a smooth transition and continued success.

For more information, feel free to reach out at This email address is being protected from spambots. You need JavaScript enabled to view it.