Microsoft has announced pricing and packaging updates for Microsoft 365 commercial subscriptions that will take effect beginning July 1, 2026.
As a Microsoft partner, Afinety will apply Microsoft’s updated pricing at renewal and continue to help firms evaluate licensing options, subscription changes and budgeting considerations.
Below are answers to common questions about these updates.
What is changing?
Microsoft is updating pricing across many Microsoft 365, Office 365 and related commercial subscription plans. Microsoft is also introducing additional security, AI and IT management capabilities across select Microsoft 365 offerings.
Key changes include:
- Updated Microsoft pricing takes effect for renewals occurring on or after July 1, 2026.
- If your renewal occurs before July 1, 2026, your current pricing remains in effect until your next renewal.
- Some Microsoft 365 plans will receive additional security, AI and management capabilities as part of Microsoft’s packaging updates.
- The impact of these changes will depend on the Microsoft licenses and subscription plans used by your firm.
Why is the price increasing?
- Microsoft states that these pricing changes reflect continued investments in security, compliance, AI, productivity and IT management capabilities across Microsoft 365 offerings.
- Microsoft is also introducing packaging updates that add new capabilities to several Microsoft 365 plans throughout 2026.
- As a Microsoft partner, Afinety will apply Microsoft’s updated pricing at renewal.
When will the new pricing take effect?
- Microsoft’s updated pricing takes effect July 1, 2026.
- If your Microsoft 365 subscription renews on or after July 1, 2026, your renewal will reflect Microsoft’s updated pricing.
- If your renewal occurs before July 1, 2026, your current pricing will remain in effect until your next renewal.
Which Microsoft 365 plans are affected?
- Microsoft has announced pricing updates across many commercial Microsoft 365, Office 365 and related subscription plans.
- Affected products may include Microsoft 365 Business Basic, Microsoft 365 Business Standard, Microsoft 365 Business Premium, Office 365 Enterprise, Microsoft 365 Enterprise and select standalone services.
- The impact depends on your specific Microsoft licenses and renewal date.
- If your subscription renews on or after July 1, 2026, Microsoft’s updated pricing will be applied at renewal.
- Please contact your account manager if you would like to review the licenses used within your firm.
Are Microsoft Teams or Microsoft 365 Copilot licenses affected?
- Microsoft has indicated that standalone Microsoft Teams licenses and standalone Microsoft 365 Copilot licenses are not included in this pricing update.
- If you have questions about a specific Microsoft product or license, please contact your account manager.
Do I need to take any action?
- No action is required.
- Your Microsoft subscriptions will continue under their current terms until renewal.
- If you would like to review your licensing strategy, evaluate subscription options or discuss upcoming renewals, please contact your account manager.
Will there be any changes to my Microsoft 365 services?
- Your existing Microsoft 365 services will continue to operate normally.
- Microsoft is also introducing additional security, AI and management capabilities across select Microsoft 365 plans as part of its broader packaging updates.
- Feature availability will vary by subscription type.
How will this affect my invoice?
- If your Microsoft subscription renews on or after July 1, 2026, your renewal invoice will reflect Microsoft’s updated pricing.
- The specific impact will depend on the Microsoft products and quantities associated with your account. Because Microsoft is updating pricing on a SKU-by-SKU basis, the impact may vary from one firm to another.
- If you have questions about how these changes may affect your upcoming invoices, please contact your account manager.
Can I make changes to my Microsoft 365 subscription?
- If you would like to review your Microsoft licensing, evaluate subscription options or discuss upcoming renewals, please contact your account manager.
- Our team can help identify the most appropriate licensing approach based on your firm’s needs.
Where can I learn more?
- For additional information regarding Microsoft’s announcement, please visit the Microsoft 365 Packaging and Pricing Updates page.
Who should I contact if I have questions?
- Our team is happy to assist you with any concerns regarding this change. Please reach out to your designated account manager.