Microsoft has announced that as of July 1, 2026, prices for most Microsoft 365 Business and Enterprise licenses will increase.
In this article, we explain which licenses are getting more expensive, what new functionality you'll receive in return, and how your organization can smartly respond to these changes.
Which licenses are getting more expensive?
Microsoft is adjusting list prices (USD) as follows:
Enterprise licenses
- Microsoft 365 E3 — from $36 to $39 per user/month (+8.3%)
- Microsoft 365 E5 — from $57 to $60 per user/month (+5.3%)
- Office 365 E3 — from $23 to $26 per user/month (+13%)
- Office 365 E1 — remains $10 per user/month (unchanged)
Business licenses
- Business Basic — from $6 to $7 per user/month (+16.7%)
- Business Standard — from $12.50 to $14 per user/month (+12%)
- Business Premium — remains $22 per user/month (unchanged)
Prices in euros are determined by local exchange rates. Due to the recent FX correction in February 2026 (-7.4%), the net impact for European customers is lower than the USD increase suggests.
What are you getting in return?
Microsoft isn't just raising prices – they're also adding significant functionality to existing licenses. This makes the increase more of an expansion than a pure cost increase for many organizations.
New features in Microsoft 365 E3
- Microsoft Defender for Office 365 Plan 1 – Advanced protection against phishing, malware, and malicious attachments
- Microsoft Intune Remote Help – Remotely assist employees through secure sessions
- Intune Advanced Analytics – Deep insights into device health and user behavior
- Intune Plan 2 – Extended endpoint management capabilities
New features in Microsoft 365 E5
In addition to all E3 additions, E5 customers receive:
- Security Copilot agents – AI-powered security analysis and automation
- Intune Endpoint Privilege Management – Granular control over admin rights
- Enterprise Application Management – Application management at enterprise scale
- Microsoft Cloud PKI – Cloud-based certificate infrastructure
New features in Business Basic, Business Standard, and Office 365 E1
- Safe Links URL checking – Real-time protection against malicious links in emails and documents
For all licenses
- Copilot Chat – Access to AI assistance in Word, Excel, PowerPoint, Outlook, and OneNote (note: this is the chat functionality, not the full Copilot license)
What does this mean for existing contracts?
As with other price changes:
- Current annual contracts remain at the old price until the end of the term
- New contracts and renewals after July 1, 2026 fall under the new prices
- Monthly contracts will see the increase immediately after July 1, 2026
Strategic planning: the optimal renewal moment
The combination of the FX correction (February 2026) and the price increase (July 2026) creates an interesting situation:
- Renewal before February 1, 2026 — Old EUR price, no FX benefit
- Renewal between February and June 2026 — Lower EUR price (-7.4%), old USD structure
- Renewal after July 1, 2026 — Lower EUR price, but higher USD structure
The optimal renewal window is between February and June 2026. During this period, you benefit from lower EUR prices AND the old license structure.
What can you do now?
Map out your renewal dates Which licenses expire when? Can you shift renewals to the optimal window?
Evaluate your license mix The added security features in E3 may make your current add-ons redundant. This could (partially) compensate for the price increase.
Consider upgrading to E3 If you currently use Office 365 E3 and pay for separate security tools, Microsoft 365 E3 may be more cost-effective due to the integrated Defender functionality.
Clean up unused licenses Every unused license becomes more expensive. Now is the time to clean up your tenant.
Request a license assessment Let Universal Cloud analyze your current situation and determine the optimal strategy.
Conclusion
The price increase as of July 2026 is inevitable, but the impact can be limited through smart planning. The added functionality – especially in the security area – makes the new prices acceptable for many organizations, particularly when this replaces add-ons you currently pay for separately.
Want to know what the price increase specifically means for your organization and how to optimally benefit from the strategic window until July? Contact Universal Cloud for a personal consultation.
