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Limassol, Cyprus — Microsoft has announced pricing and packaging updates for selected Microsoft 365 commercial suites and standalone services, effective July 1, 2026.

The update applies to a wide range of Enterprise, Business, Frontline, and standalone components and reflects Microsoft’s continued investment in security, endpoint management, productivity, and AI-powered workplace capabilities.

As part of the update, Microsoft will also introduce additional capabilities at no extra cost, including Microsoft Defender for Office, enhanced Microsoft Intune features, and improvements to Copilot Chat. These features are expected to roll out gradually, with customers receiving advance notification through their tenant’s Message Center.

Key highlights of the update

Indicative increases per user, per month include the following categories:

Enterprise:

• Office 365 E3: +13% | Office 365 E5: +8%
• Microsoft 365 E3: +8% | Microsoft 365 E5: +5%

Business:

• Business Basic: +16% | Business Standard: +12% | Business Premium: 0 %

Frontline:

• Microsoft 365 F1: +33% | Microsoft 365 F3: +25%

Standalone:

• Microsoft 365 Apps: +17% | EMS E3: +13% | Windows E3: +15% | Microsoft Entra ID P1: +16%

What this means for organizations

Organizations using Microsoft 365 should review their active subscriptions, renewal dates, user requirements, and licensing structure in advance. A proactive licensing review can help optimize costs, improve plan alignment, and ensure businesses are prepared to take advantage of the new capabilities included in the updated packages.

• Existing subscriptions will retain current pricing until their next renewal; the new pricing will apply to renewals and new purchases from 01/07/2026.
• Standalone Microsoft Teams and Copilot licenses are not affected.

According to Microsoft’s official announcement, existing customers will remain on their current pricing until their next renewal, while new pricing will apply to new purchases and renewals from July 1, 2026.

Microsoft 365 Pricing and Packaging Updates | Microsoft Licensing Resources

IBSCY Ltd remains available to support organizations in reviewing their Microsoft 365 licensing, identifying cost-optimization opportunities, and preparing for the upcoming pricing and packaging changes.