Microsoft 365: Major Licensing Changes Coming in 2026
December 10, 2025
Microsoft has confirmed significant updates to Microsoft 365 that will take effect from 1 July 2026. These include new capabilities across Business, Office 365 and Enterprise plans, along with global price increases. Every organisation using Microsoft 365 will be impacted.
Below is a clear overview of what’s changing.
Pricing Changes (Effective July 2026)
Microsoft will increase prices by 5 to 35 percent across most Microsoft 365 and Office 365 plans. This applies to Commercial, Government and Non-profit customers.
Examples of new monthly pricing:
- Business Basic: $6 → $7
- Business Standard: $12.50 → $15
- 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
Customers renewing before July 2026 will not see the increase until their next renewal cycle.
New Capabilities Coming in 2026
Alongside the pricing shift, Microsoft is introducing substantial functionality upgrades across the product family.
Business Plans (Basic, Standard, Premium)
Enhancements include:
- Improved Copilot Chat
- Strengthened security and analytics
- URL protection in Outlook and Office apps
- +50GB mailbox storage
- Defender for Office P1
- Expanded Intune features including Remote Help
- Advanced device analytics
- Cloud PKI
- Security Copilot capabilities aligned to plan level
Office 365 E1 and E3
Additions include:
- Defender for Office P1
- Enhanced URL protection
- Increased mailbox storage
- Copilot Chat improvements
- Improved reporting and insights
Microsoft 365 E3
New capabilities:
- Remote Help
- Advanced device analytics
- Intune Plan 2 including firmware management and Microsoft Tunnel for MAM
Microsoft 365 E5
Expanded functionality:
- Endpoint Privilege Management
- Cloud PKI
- Enterprise App Management
- Full Intune Suite uplift
- Additional Security Copilot credit and integrations
What this means for organisations
Microsoft is increasing baseline value across all plans, particularly in security and device management. At the same time, the pricing changes create a clear need for organisations to reassess licence allocations, security posture and multi year renewal strategies.
Qwantro is already modelling the full impact of these changes and helping customers plan the most cost effective path ahead of 2026.
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