Microsoft 365 Prices Are Going Up Again on July 1, 2026
Microsoft 365 Prices Are Going Up Again: Here's What Your Business Needs to Know.
If it feels like Microsoft raises prices every few years, you're not imagining things.
Microsoft recently announced another round of Microsoft 365 pricing changes that will begin taking effect on July 1, 2026. For many businesses, these increases will show up at their next renewal date after July 1.
Whenever Microsoft announces pricing changes, the first question I hear from clients is simple:
"Am I paying more for the same thing?"
The answer this time is a little more complicated.
In many cases, Microsoft is increasing prices while also adding security, management, and AI-related features to various Microsoft 365 plans. Whether those additions provide value to your organization depends on how your business uses Microsoft 365 today and whether you're taking advantage of the tools already included in your licensing.
What's Changing?
Microsoft is updating both pricing and product packaging across much of the Microsoft 365 lineup.
Some of the most common small business plans are seeing increases:
- Microsoft 365 Business Basic increases from $6 to $7 per user/month
- Microsoft 365 Business Standard increases from $12.50 to $14 per user/month
- Various Enterprise plans are also increasing
- Microsoft 365 Business Premium remains unchanged at $22 per user/month
Microsoft says these changes reflect substantial investments in security, device management, collaboration tools, and AI capabilities that have been added to the platform over the past several years.
For many organizations, the biggest additions are not flashy AI features. They are security improvements that help reduce phishing risk, improve endpoint management, and strengthen the protection of company data.
The real question is whether you're licensed correctly.
Over the years, I've reviewed hundreds of Microsoft 365 environments. One of the most common discoveries is that companies are paying for licenses they don't need, while other users are missing features they absolutely should have.
We've seen organizations:
- Purchase expensive licenses for employees who only need email
- Run Business Standard when Business Premium would significantly improve security
- Pay for third-party tools that are already included in their Microsoft licensing
- Miss opportunities to reduce costs through better license alignment
A price increase is a good opportunity to review your environment and ensure you're getting value from every dollar you spend.
Security Matters More Than Ever
One thing I agree with Microsoft on is this:
The threat landscape today looks very different than it did a few years ago.
Phishing attacks have become more sophisticated. Business email compromise continues to impact organizations of every size. AI tools are helping both defenders and attackers move faster than ever before.
Many of the new features Microsoft is adding focus on helping organizations detect threats earlier, manage devices more effectively, and improve security without requiring additional products.
That doesn't mean Microsoft's built-in tools are enough by themselves. Security still requires a combination of technology, processes, monitoring, employee training, and ongoing oversight.
Technology alone has never solved a security problem.
What Should Your Business Do Right Now?
Before your next Microsoft renewal, I recommend three steps:
1. Review Your Current Licensing
Make sure every employee has the right license for their role.
2. Evaluate Included Features
Many businesses are paying for third-party solutions while ignoring capabilities already included in Microsoft 365.
3. Assess Your Security Posture
The additional security features only help if they're properly configured and actively managed. We've seen organizations purchase premium licensing and leave critical protections disabled.
That's a little like buying a security system and never locking the front door.
Nobody gets excited about a price increase.
That said, this announcement should be viewed as more than a budget item.
It's an opportunity to evaluate your Microsoft environment, eliminate unnecessary spending, strengthen security, and make sure you're getting the most value from your technology investments.
If you're unsure how these changes will affect your organization, now is a good time to review your licensing, security controls, and overall IT strategy before renewal season arrives.
At Solve iT, we help businesses understand what they're paying for, identify unnecessary costs, and close security gaps before they become expensive problems.
If you'd like an outside perspective, schedule a free threat assessment. We'll help you understand your risks, review your Microsoft environment, and determine whether your current licensing aligns with your business needs.
Sleep better at night knowing your technology is working for you, not against you.
– Eddie Clark
Founder & CEO, Solve iT