Impacted products: Commercial Microsoft 365 subscriptions for new and renewing customers.
Microsoft has announced pricing updates for commercial Microsoft 365 suites across all purchasing channels, effective July 1, 2026. With more than 430 million users and over 90% of Fortune 500 companies relying on Microsoft 365, this is a major change that organisations of all sizes should prepare for.
These pricing adjustments come with expanded AI-driven capabilities, strengthened security, and enhanced management tools within Microsoft 365. With rising IT demands, an increasingly complex threat landscape, and accelerating AI adoption, Microsoft aims to ensure that organisations stay productive, protected, and ready for what’s next.
What This Means for You
Starting July 1, 2026, updated prices will apply to:
- All new commercial Microsoft 365 subscriptions
- All renewals occurring on or after July 1, 2026
If customers renew before July 1, 2026, they can still lock in current pricing and maintain cost predictability for the full duration of their renewed term.
The changes apply globally, with local market adjustments. Nonprofit pricing will be updated in line with commercial changes, and Microsoft has also announced increases for government suites.
New Commercial Microsoft 365 prices:
Why You Should Act Now
If you want to avoid higher costs, the window to act is clear. By renewing before July 1, 2026, you can:
- Secure current pricing before the increase
- Ensure uninterrupted service and cost stability
- Benefit from the enhanced capabilities coming to Microsoft 365
- Prepare your organisation for AI-powered transformation
This is also the perfect time to take a closer look at your subscription and consider upgrades that better align with your growing business needs. Here are some great options to explore:
Upgrading ahead of the pricing change enables you to maximise value and start taking advantage of the latest AI features sooner. Don't delay, act now!
What New Features Are Coming to Microsoft 365?
✔ Copilot Chat Across Microsoft 365
Since September 2025, Microsoft has been rolling out Copilot Chat across Word, Excel, PowerPoint, Outlook, and OneNote, creating a unified AI chat workspace.
At Ignite 2025, Microsoft announced:
- Support for inboxes and calendars
- Access to Agent Mode for iterative, high‑quality content creation
- New admin controls to secure and manage Copilot usage
AI will become a core part of everyday work, and Copilot Chat will be available to all Microsoft 365 users.
✔ Advanced Email & Teams Threat Protection for More Users
Microsoft brings stronger security across more subscription tiers:
- Microsoft Defender for Office 365 Plan 1 is being added to Office 365 E3 and Microsoft 365 E3, enhancing protection from phishing, malware, and malicious URLs
- URL safety checks coming to Office 365 E1, Business Basic, and Business Standard to help safeguard users from known malicious websites in emails and Office apps
✔ Integrated Endpoint Management Enhancements
Microsoft is strengthening endpoint management within Microsoft 365 E3 and E5 with tools that help IT teams troubleshoot, secure, and optimise devices with key additions such as:
- Intune Remote Help
- Intune Advanced Analytics
- Intune Plan 2
For E5 customers, additional upgrades to ensure security and compliance and improve the experience include:
- Intune Endpoint Privilege Management
- Enterprise Application Management
- Microsoft Cloud PKI
✔ Built‑In Security Agents for all Microsoft 365 E5 users
Security Copilot agents are being embedded into workflows using:
- Microsoft Defender
- Microsoft Entra
- Microsoft Intune
- Microsoft Purview
Microsoft has announced the introduction of more than 70 Microsoft‑ and partner-built security agents, with rollouts continuing through 2026. Customers with Microsoft 365 E5 will receive a 30-day heads-up before their activation. Currently, this is accessible only to existing Security Copilot clients within Microsoft 365 E5.
Microsoft’s Vision: A More Secure, AI-Driven Future
These updates reflect Microsoft’s ongoing commitment to helping organisations protect data, streamline operations, and confidently embrace the future of work. The company promises to invest heavily in security, cloud management, and AI innovation, ensuring that Microsoft 365 remains a comprehensive platform for modern workplaces.
How DCD‑IT Can Help
At DCD‑IT, we offer a wide portfolio of Microsoft 365 solutions suitable for businesses of all sizes, including commercial M365 subscriptions, server and desktop licences, and selected standalone apps.
We also provide tailored licensing packages and expert consultancy, ensuring your organisation gets the right product mix for its IT and AI‑driven future.
Don’t Wait! Renew or Upgrade Before Prices Increase
Secure your savings. Strengthen your productivity. Unlock AI-powered capabilities.
✔ Renew your Microsoft 365 subscription before July 1, 2026!
✔ Schedule an appointment with one of our Software Solutions experts to find the optimal subscription for you.
✔ Contact us to lock in your pricing and future-proof your business.