Microsoft 365 Pricing Update: What’s Changing and How to Prepare
A straightforward look at the upcoming increase and what renewal timing means for your business
Microsoft has announced a price increase for Microsoft 365 commercial subscriptions, effective July 1, 2026. Like most vendor price changes, this isn’t welcome news but it is something businesses should plan for.
The increase applies across Microsoft 365 and Office 365 business and enterprise plans. Microsoft has tied the change to ongoing platform evolution, but regardless of the reasoning, the practical takeaway is simple: Microsoft 365 will cost more starting mid‑2026.
One Important Detail About Renewals
If your subscription renews before July 1, 2026, you will keep your current pricing for the full term of that renewal. The new July 2026 pricing would not apply until your next renewal after that date.
That said, some customers already renewed under previous pricing adjustments. In those cases, pricing may still increase at the next renewal, but not necessarily to the new July 1, 2026 pricing levels. The exact impact depends on when your last renewal occurred and which pricing tier you’re currently on.
What’s Being Added to Microsoft 365
Alongside the pricing change, Microsoft is rolling out new capabilities across Microsoft 365 in 2026, primarily in three areas: AI, security, and device management. These updates will be included directly in existing plans rather than offered only as add‑ons.
Key changes include:
- Expanded Copilot Chat integration
Copilot Chat is becoming more deeply embedded into Word, Excel, PowerPoint, Outlook, and OneNote, with added context from email and calendars and new “Agent Mode” capabilities for more advanced tasks. IT administrators will also gain additional controls to manage and govern Copilot usage. - Stronger email and collaboration security by default
Microsoft is adding Microsoft Defender for Office 365 Plan 1 capabilities to Office 365 E3 and Microsoft 365 E3, expanding phishing, malware, and malicious link protection. URL protection is also being extended to lower‑tier plans such as Business Basic and Business Standard. - Additional endpoint and device management tools
Microsoft is folding more endpoint management capabilities into Microsoft 365 E3 and E5, giving IT teams more built‑in tools to manage devices, troubleshoot issues, and reduce security risk without relying as heavily on separate products.
While these capabilities may be useful for some organizations, not every business will benefit equally which is why reviewing licensing and actual usage matters more than feature lists.
How Akins IT Helps
At Akins IT, our focus isn’t selling features, its helping clients pay only for what they actually need. We help businesses:
- Understand how Microsoft’s pricing changes affect their environment
- Identify unused or misaligned licenses
- Plan renewals strategically to reduce cost impact
If you’d like us to review your Microsoft 365 licensing or renewal timeline, we’re happy to help you plan ahead. No surprises, no sales spin.
