Microsoft is implementing a series of licensing changes and promotions in 2026 that have a direct impact on IT budgets and contract strategies. Below you will find a compact overview of the relevant offers for Microsoft 365, Copilot, Dynamics 365, and server products. The Microsoft licensing world moves fast… anyone who does not actively keep up with what is changing risks paying too much.
1. Microsoft 365 E7 – introductory discounts up to 15%
As of May 1, 2026, Microsoft is introducing the new Microsoft 365 E7, also known as the Frontier SuiteThis enterprise subscription is offered via CSP and includes attractive introductory discounts for organizations that have not previously purchased E7.
Annual subscriptions
- 10% discount on 10–9.999 licenses
- 15% discount on 100–9.999 licenses
- Valid from May 1 to December 31, 2026
- Only for new-to-offer clients ask
Three-year subscription
- 15% discount on a minimum of 300 licenses
- Valid from May 1 to December 31, 2026
Organizations already using E3 or E5 can upgrade, but must carefully calculate the business case.
2. Microsoft 365 E3 and E5 – extended promotions
For organizations that already use Microsoft 365 or want to switch from Office 365 to E3, various promotions remain available.
E3 – Office 365 upgrade
- 20% discount for SME&C CSP customers
- 250–9.999 licenses
- Available until June 30, 2026
E3 – three-year subscription
- 10% discount for new-to-offer customers
- From 100 licenses
- Until June 30, 2026
E5 – new‑to‑offer
- 15% discount on annual subscription
- 10% discount on three-year subscription (100–9.999 seats)
- Until June 30, 2026
3. Microsoft 365 Copilot – discounts from 15% to 40%
Microsoft encourages broad adoption of Copilot with a tiered promotion structure:
Introductory discount (15%) For new Copilot customers, 10–9.999 seats, until June 30, 2026.
Scale Up (20%) For all CSP tenants with 100+ seats, no new-to-offer restriction.
Copilot for All (30%) Minimum 300 seats, 80% IW coverage, remaining 20% on Copilot Chat.
Targeted 40% Only for selected customers, 1.500+ seats, 80% IW coverage.
Due to the complexity, an accurate license inventory is essential to determine which discount is actually applicable.
4. SMB market – bundles with Business Standard and Business Premium
For organizations with up to 300 seats, there are bundles with Copilot Business:
- Business Premium + Copilot Business: up to 25% discount
- Business Standard + Copilot Business: up to 35% discount
- Copilot Business standalone: up to 15% discount
- Valid until June 30, 2026
Purview discount (50%) ran until 31 March 2026; renewal must be confirmed per supplier.
5. Dragon Copilot – price reduction and simpler consumption model
As of May 1, 2026, Microsoft is lowering the price of Dragon Copilot. In addition, the consumption model is being simplified: costs will henceforth be per encounter calculated instead of per individual AI action. This makes budgeting for healthcare institutions significantly simpler.
6. Windows and SQL Server via CSP – License Mobility
Starting May 1, 2026, Windows Server and SQL Server subscriptions will receive via CSP. License Mobility rightsThis allows organizations to deploy these licenses more flexibly in hybrid environments, including shared hosting with certified partners.
7. Dynamics 365 – Bridge to Cloud 3
Bridge to Cloud 3 offers on-premises Dynamics customers a migration opportunity with 30% discount on a three-year, non-cancellable subscription.
Terms & conditions
- Valid from 1 January 2026 to 31 December 2027
- Active Enhancement Plan required (or expired max. 30 days)
- Cloud subscription must be at least equal to current EP costs
- Offered via CSP NCE partner‑led subscriptions
Due to the strict conditions, prior advice is necessary.
Ready to see how Snowflake works?
The Microsoft promotions for 2026 offer significant savings opportunities, but terms vary widely by product, customer type, and volume disk. An accurate inventory of your licensing position and an independent analysis are crucial to take full advantage and avoid incorrect assumptions.
Do you want to know for sure which promotions are truly applicable to your organization — and which business case yields the highest return?
Our independent licensing specialists are happy to assist you with clear, objective advice based on your current licensing position.
