If your business relies on Microsoft 365, there’s an important change on the horizon. Microsoft has announced that commercial Microsoft 365 pricing will increase from July 2026, affecting many of the licences commonly used by businesses.
For most organisations, Microsoft 365 sits at the heart of daily operations – powering email, file storage, collaboration, and security. As a result, even relatively small per-user increases can have a noticeable impact when multiplied across an entire team.
In this article, we’ll explain why the changes are happening and what your business should do to prepare.
Why Microsoft Is Increasing Prices
Microsoft says the upcoming price adjustments reflect the continued development and investment in the Microsoft 365 platform.
Over the past few years, Microsoft has introduced a range of new capabilities across the ecosystem, including:
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Expanded AI functionality with tools such as Microsoft Copilot
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Enhanced security features within Microsoft Defender
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Improved device management and compliance tools through Microsoft Intune
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Ongoing improvements to collaboration tools like Microsoft Teams and Microsoft SharePoint
Microsoft continues to invest heavily in the platform, adding hundreds of improvements across productivity, security, and AI-driven tools to support modern ways of working.
What Do We Know About the Pricing So Far?
At the moment, Microsoft has only released the updated licence pricing in US dollars (USD).
Based on the information available so far, the increases are expected to be in the region of $1–$3 USD per user, per licence, per month, depending on the licence type.
However, official pricing in GBP has not yet been confirmed. Currency conversion, regional adjustments, and licensing structures often mean the final UK pricing differs slightly from the US figures.
As soon as Microsoft releases the official GBP pricing for UK businesses, we will make sure to share the details with our customers.
Not All Plans Are Increasing
One interesting detail is that Microsoft 365 Business Premium is currently expected to remain unchanged, despite gaining additional security and management features.
This narrows the price gap between Microsoft 365 Business Standard and Microsoft 365 Business Premium, which may lead some organisations to upgrade licences rather than simply absorb the increase.
For some businesses, this could mean gaining additional security, device management, and compliance features for only a small difference in cost.
When Will the Changes Take Effect?
The updated pricing is expected to take effect from July 2026.
For most businesses, the new pricing will apply at the next renewal date after July, rather than immediately. This means some organisations may see the increase later in the year depending on when their licences renew.
What This Means for Your Business
For many SMEs, Microsoft licensing is already a core part of the IT budget. With prices increasing, now is a great time to review how your licences are being used.
During licence reviews, we often find that businesses:
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Are paying for unused licences
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Have staff on higher-tier licences than they actually need
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Are missing out on security tools already included in their subscription
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Have licence setups that don’t reflect how the business has evolved
With pricing changes coming, reviewing your setup now can often reduce unnecessary spend while improving security and efficiency.
You can read more about the Microsoft 365 price increases here.
How Conquered IT Can Help
At Conquered IT, we help businesses make sense of Microsoft licensing and ensure they are getting the most from their technology.
Before the July changes arrive, we recommend:
✔ Reviewing your current licence mix
✔ Identifying unused or duplicated licences
✔ Checking security settings and features
✔ Planning ahead for renewal dates
Often, a simple review can ensure your business is only paying for what it truly needs.
