Microsoft Pricing Increase: What You Need to Know

Microsoft recently announced a global price and packaging update for select Microsoft 365 commercial suites. These changes take effect on July 1, 2026. If your business relies on Microsoft products for daily operations, you need to understand how these adjustments impact your bottom line.

This update affects Enterprise, Business, Frontline, and Government commercial plans. While pricing will change, existing customers remain on their current pricing until their next renewal date after the July 1 deadline.

What Microsoft Announced

The price adjustments vary based on the specific licenses your organization uses. The increases range from 5% to 33%, depending on the tier. Microsoft attributes these updates to the inclusion of new bundled capabilities, such as advanced security tools and management features. Technology is not the solution but the tools used to the solution, and understanding these new bundled features helps you make the most of your investment.

Here is a breakdown of the notable pricing changes:

Business Plans

Most standard business plans will see moderate adjustments:

• Microsoft 365 Business Basic: Increasing by roughly 16% (from $6.00 to $7.00 per user/month).
• Microsoft 365 Business Standard: Increasing by 12% (from $12.50 to $14.00 per user/month).

Enterprise Plans

Larger organizations using Enterprise tiers will also experience changes:

• Office 365 E3: Increasing by 13% (from $23.00 to $26.00 per user/month).
• Microsoft 365 E3: Increasing by 8% (from $36.00 to $39.00 per user/month).
• Microsoft 365 E5: Increasing by 5% (from $57.00 to $60.00 per user/month).

Frontline Worker Plans

Plans designed for shift workers will see the highest percentage jumps:

• Microsoft 365 F1: Increasing by 33% (from $2.25 to $3.00 per user/month).
• Microsoft 365 F3: Increasing by 25% (from $8.00 to $10.00 per user/month).

Notable Exceptions

Not every plan will cost more. Microsoft announced that Microsoft 365 Business Premium and Office 365 E1 will maintain their current pricing. For many small to medium-sized businesses, Business Premium may now represent the best overall value for security and productivity.

A Caution Against Scams

Be on high alert for phishing schemes leveraging this price increase news. Scammers often take advantage of widely publicized updates to craft deceptive emails with subject lines like "Urgent: Microsoft Price Increase Action Required" or "Verify your Billing to Avoid Disruption." These messages may seem legitimate, featuring accurate pricing data, but they are designed to lure IT administrators into clicking malicious links or sharing sensitive information. To protect your organization, always verify any pricing or billing changes directly through your official Microsoft Admin Center or by contacting your trusted CSP partner (like Intrada). Stay vigilant, and remember that safeguarding your systems starts with knowing where to verify information.

Next Steps for Your Business

Navigating licensing changes often feels overwhelming. We work directly with our client to create a partnership, helping you understand your software needs without overpaying for unused features. Consider us the creation or expansion of your IT or Marketing Teams.

If you have questions about your current licensing, let us know so we can schedule time with a licensing expert to review and advise of any changes or expectations. Reach out to Intrada Technologies today to evaluate your current Microsoft 365 setup and plan strategically for July 2026.