In recent years, Microsoft has regularly lowered the prices of Microsoft 365 subscriptions increased, often under the guise of “simplification” or expansions in the suites. Per July 1, 2026 another price increase is planned – in some cases up to 33%. Microsoft links this increase to new AI, security and management functionalities, which are added by default to various subscriptions.
The question is: do organizations really need these features, or are they forced to pay more for functionality they don't need?
Price increases as of July 1, 2026
According to Microsoft, prices will increase globally, with local market corrections per country.
| License | Old price (USD) | New price (USD) | Price increase |
|---|---|---|---|
| Business basic | $6 | $7 | 16,67% |
| Business Standard | $12,50 | $14 | 12% |
| Office 365 E3 | $23 | $26 | 13% |
| Microsoft 365 E3 | $36 | $39 | 8,33% |
| Microsoft 365 E5 | $57 | $60 | 5,26% |
| Microsoft 365 F1 | $2,25 | $3 | 33,33% |
| Microsoft 365 F3 | $8 | $10 | 25% |
In particular the sharp increase for the F-plans It's striking. These subscriptions are specifically intended for frontline workers with limited productivity needs. This raises the question of whether Microsoft isn't actually blurring the lines between different user personas.
New AI, security and management functionalities
Microsoft links the price increase to Copilot Chat, improved security and management features extra productivity optionsBelow is an overview of the most important features per subscription:
| Features | Business basic | Business Standard | Business Premium | Office 365 E1 | Office 365 E3 | Microsoft 365 E3 | Microsoft 365 E5 |
|---|---|---|---|---|---|---|---|
| Copilot Chat enhancements | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Security, management, and analytics for Copilot Chat | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| URL checks in Outlook and Office apps (web & mobile) | ✓ | ✓ | ✓ | ✓ | |||
| +50 GB email storage | ✓ | ✓ | ✓ | ||||
| Microsoft Defender for Office P1 | ✓ | ✓ | |||||
| Microsoft Intune Remote Help | ✓ | ✓ | |||||
| Microsoft Intune Advanced Analytics | ✓ | ✓ | |||||
| Microsoft Intune P2 | ✓ | ✓ | |||||
| Intune Endpoint Privilege Management | ✓ | ||||||
| Intune Enterprise Application Management | ✓ | ||||||
| Microsoft Cloud PKI | ✓ | ||||||
| Microsoft Security Copilot | ✓ |
Are organizations ready for these extra features?
Not every organization has the same need for the new AI and security functionalitiesLarge companies and knowledge-intensive teams can benefit, while smaller companies or frontline employees may find some features less relevant. Therefore, it's important to assess which functionalities truly add value within your own organization.
How long will customers continue to accept this?
The successive Microsoft 365 price increases raise questions:
- Where is the limit for customers?
- When does switching to alternatives become a serious scenario?
- Do the new features provide enough value to justify increases of up to 33%?
The actual added value varies from organization to organization. Timely evaluation of whether the current licensing model still meets your needs is essential.
What does this mean for your organization?
The impact of price increases varies by organization, licensing model, and user group. For a targeted estimate of costs and functionality, we recommend evaluating your current Microsoft 365 environment.
Note: Depending on contract type, region, and license variant, exact features and price impact may vary.
👉 Contact us to determine what these changes mean for your situation.
Source: Advancing Microsoft 365: New capabilities and pricing update | Microsoft 365 Blog