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Microsoft
4 min read
Microsoft has announced pricing and packaging updates for selected Microsoft 365 commercial suites and standalone components, with pricing changes taking effect from 1 July 2026. Existing customers will stay on their current pricing until renewal.
For many organisations this is a good opportunity to review whether current licensing is still the right fit, whether users are on the right plans, and whether the business is getting full value from what it is already paying for.
From 1 July 2026, Microsoft is updating pricing across selected Microsoft 365 commercial suites and standalone components. Microsoft has said pricing may vary by country and currency, so local rates should be checked at renewal.
Alongside the pricing changes, Microsoft is also expanding what is included in a number of plans. The rollout begins in June 2026 and includes:
For most organisations, this will not mean an immediate increase on 1 July.
If you are purchasing new licences after 1 July 2026, the updated pricing will apply from that point. If you are an existing customer, Microsoft says you will remain on your current pricing until your next renewal. Microsoft also says customers will receive at least 30 days’ notice in Message Center before packaging changes become available in their tenant.
That means there is still time to prepare.
Although price rises naturally get attention, the bigger issue for many businesses is whether their Microsoft licensing is properly aligned to how people actually work.
It is common to see organisations paying for licences that are underused, assigning higher-tier plans where they are not needed, or keeping third-party tools in place that now overlap with capabilities already included within Microsoft 365. When pricing moves up, those inefficiencies become more visible and more expensive.
That is why the months before renewal matter. They provide a chance to review what is in place, remove unnecessary spend, and make better use of the capabilities already included in the licensing estate.
Before your next renewal, it is worth taking a closer look at a few key areas:
In many cases, a careful review can help offset some of the impact of the upcoming price changes.
Microsoft licensing types aren’t straightforward, especially as pricing, packaging and included capabilities continue to evolve.
As a leading Microsoft Partner, BCN supports organisations across the UK and internationally to review, optimise and manage their Microsoft 365 licensing with confidence.
Our experts work closely with businesses to:
Our customers trust us to provide clear, practical guidance and long-term support, helping them maximise productivity, strengthen security and make smarter licensing decisions as Microsoft continues to evolve its platform.
Book your free Microsoft licensing review today and make sure you are ready ahead of your next renewal.
