- Some Microsoft 365 and Office 365 plans will be more expensive
- Business and government users will see increases starting in July 2026
- In return, customers get more security and more AI.
Microsoft has confirmed plans to increase prices for its enterprise-focused Microsoft 365 packages, but here’s why you shouldn’t look to migrate elsewhere (according to them).
The suite now has more than 430 million users and has been adopted by 90% of Fortune 500 companies, a true reflection of market confidence.
Redmond has also increasingly incorporated Copilot-branded generative AI features into its apps, with even more AI, security, and management features expected to arrive in early 2026.
M365 prices are going up
“Organizations face an increasingly complex threat landscape, increasing IT demands, and the urgent need for AI-driven transformation,” explained Nicole Herskowitz, CVP of M365 and Copilot, justifying the added features that have ultimately led to higher costs.
In terms of changes, O365/M365 E3 plans will soon get Microsoft Defender for Office Plan 1, giving them access to improved phishing and malware protection against email and collaboration platforms.
Microsoft Security Copilot, a suite of agent tools, will also arrive on M365 E5 plans in the coming months.
Microsoft has published which new capabilities are rolling out to which plans in a blog post, including a handy table showing who’s ready to get 50GB of email storage, Outlook and Office app URL verification, Intune updates, and more.
As a result, seven of Microsoft’s nine commercial SKUs will see increases of between 5% and 33% (at least for US dollar markets). M365 Business Premium and O365 E1 will remain unchanged. Herskowitz confirmed that the changes will apply globally to other currencies.
All changes will take effect from July 1, 2026, leaving customers enough time to make reasonable adjustments.
In addition to commercial lines, Microsoft is also increasing costs for government customers, with government versions of M365 E3/G3 increasing by 8% and M365 E5/G5 versions increasing by 5%. Redmond also plans to increase government O365 E3/G3 pricing by 13%: an initial 10% starting July 1, 2026 and another 3% a year later.
For now, we have no reason to believe that consumer prices will follow the same path. TechRadar Pro He is waiting for a response from Microsoft on this.
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