- Some Microsoft 365 and Office 365 plans are set to become more expensive
- Businesses and public users will see the increases from July 2026
- In return, customers get more security and more artificial intelligence
Microsoft has confirmed plans to raise prices for its enterprise-focused Microsoft 365 packages, but here’s why you shouldn’t be looking to migrate elsewhere (according to them).
The suite now has more than 430 million users and has been adopted by 90% of the Fortune 500 – a true reflection of market confidence.
Redmond has also shoehorned more and more Copilot-branded generative AI functionality into its apps, with even more AI, security and management features expected to arrive in early 2026.
M365 prices are increasing
“Organizations face an increasingly complex threat landscape, increasing IT demands and the urgent need for AI-driven transformation,” explained M365 and Copilot CVP Nicole Herskowitz, justifying the added features that have ultimately led to higher costs.
In terms of changes, O365/M365 E3 plans will soon get Microsoft Defender for Office Plan 1, giving them access to improved phishing and malware protection against email and collaboration platforms.
Microsoft Security Copilot, an agent suite of tools, is also coming to M365 E5 plans in the next few months.
Microsoft has announced which new features are rolling out to which plans in a blog post, including a handy table showing who’s set to get 50GB of email storage, Outlook and Office app URL control, Intune upgrades and more.
As a result, seven of Microsoft’s nine enterprise SKUs will see increases of between 5% and 33% (at least for USD markets). M365 Business Premium and O365 E1 remain unchanged. Herskowitz confirmed that the changes will apply globally across other currencies.
All changes will come into effect on 1 July 2026, giving customers enough time to make reasonable adjustments.
Aside from commercial lines, Microsoft is also increasing costs for government customers, with public versions of M365 E3/G3 increasing by 8% and M365 E5/G5 versions increasing by 5%. Redmond also plans to raise government O365 E3/G3 prices by 13% – first 10% from July 1, 2026 and another 3% a year later.
So far, we have no reason to believe that consumer prices will follow suit. TechRadar Pro awaiting response from Microsoft on this.
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