Microsoft has announced price increases of up to 33% across Microsoft 365 and Office 365 for contracts signed from 1 July 2026. Combined with recent licensing changes, discount removals, and regional pricing updates, many organizations face compounded cost increases not reflected in their budgets or renewal plans.
What is changing in Microsoft 365 pricing
The upcoming increase affects a broad set of Microsoft products, including:
- Microsoft 365 E3, E5, G3, and G5
- Office 365 E3, E5, G3, and G5
- Microsoft 365 F1 and F3 for frontline workers
- Microsoft 365 Business Basic and Business Standard, among others
While selected plans (particularly Microsoft 365 E3 and E5) will include additional Intune and security capabilities, pricing increases apply regardless of feature adoption. Some plans without announced enhancements are also subject to higher prices.
The table below summarizes selected Microsoft 365 and Office 365 plans impacted by the announced price increases.
|
Product |
Previous Price (USD) |
New Price (USD) |
Increase (%)
|
Planned Feature Additions
|
|
Microsoft 365 E3 |
$36 |
$39 |
8% |
Intune IT (Remote Help, Advanced Analytics, Intune P2), Microsoft Defender |
|
Microsoft 365 E5 |
$57 |
$60 |
5% |
Everything in E3 + Intune Security (Endpoint Privilege Mgmt, Cloud PKI), Security Copilot |
|
Microsoft 365 F1 |
$2.25 |
$3 |
33% |
— |
|
Microsoft 365 F3 |
$8 |
$10 |
25% |
— |
|
Office 365 E3 |
$23 |
$26 |
13% |
Microsoft Defender Office 365 P1 |
|
Office 365 E5 |
$38 |
$41 |
8% |
— |
|
Office 365 E1 |
$10 |
$10 |
0% |
SafeLinks Lite |
|
Office 365 E1+ |
$20 |
$20 |
0% |
SafeLinks Lite |
|
EMS E3 |
$10.60 |
$12 |
13% |
Intune IT (Remote Help, Advanced Analytics, Intune P2) |
|
EMS E5 |
$16.40 |
$18 |
10% |
Intune IT (Remote Help, Advanced Analytics, Intune P2) |
|
Windows E3 |
$5 |
$6 |
20% |
Intune IT (Intune P2, Remote Help, Advanced Analytics), Resiliency, FIRE |
|
Windows E5 |
$11.80 |
$12.80 |
9% |
— |
|
Entra P1 |
$6 |
$7 |
16% |
— |
|
Entra P2 |
$9 |
$10 |
11% |
— |
|
Microsoft 365 Apps for Enterprise |
$12 |
$14 |
17% |
— |
|
Windows Enterprise per Device |
$5.84 |
$7.63 |
31% |
— |
|
Apps per Device |
$36 |
$42 |
17% |
— |
|
Business Basic |
$6 |
$7 |
16% |
SafeLinks Lite, 50GB email |
|
Business Standard |
$12.50 |
$14 |
12% |
SafeLinks Lite, 50GB email |
|
Business Premium |
$22 |
$22 |
0% |
50GB email |
|
Apps for Business |
$8.25 |
$10 |
21% |
— |
Who is affected and where costs are overlooked
Organizations with large Microsoft 365 environments or renewals scheduled in 2026 are most exposed. The impact is often underestimated due to limited insight into how licenses are used. Costs escalate when organizations:
- Apply premium license bundles across varied user roles
- Maintain separate security or device management tools despite overlapping Microsoft capabilities
- Retain unused or underused licenses following workforce changes
- Treat licensing as a renewal task rather than ongoing governance
Early commitment, early renewal, and contract considerations
Early Commitment or Early Renewal can defer the July 2026 price increase but require careful evaluation. Committing without understanding usage, workforce plans, or contract implications can lock organizations into inefficient licensing structures.
During renewal discussions, organization may consider alternative such as Enterprise Agreement (EA), Microsoft Customer Agreement – Enterprise (MCA-E), or Cloud Solution Provider (CSP), each with different implications for pricing, flexibility, and subscription management.
Managing Microsoft 365 cost and contract risk
Microsoft 365 pricing and licensing decisions increasingly sit at the intersection of technology, finance, and governance. Crowe Indonesia Teknologi supports organizations by helping them understand usage patterns, assess licensing efficiency, and evaluate renewal options with clarity. With a structured and independent approach, organizations can navigate upcoming price changes while maintaining control over cost and risk.