Effective July 1, 2026, Microsoft will increase prices worldwide for selected Microsoft 365 and Office 365 licenses. At the same time, Microsoft 365 E7 launches as a new suite for scalable enterprise AI adoption.
Microsoft has announced a global pricing and packaging update for Microsoft 365, effective July 1, 2026. The changes affect selected Microsoft 365 and Office 365 licenses, including Business, Enterprise, and Frontline plans—both with and without Microsoft Teams.
New purchases and contract renewals after this date will be subject to the updated pricing. Existing contracts remain unchanged until their next renewal.
Which licenses are affected?
The price adjustments apply to commercial and non-profit Microsoft 365 plans, with and without Microsoft Teams, including:
Business plans
- Microsoft 365 Business Basic
- Microsoft 365 Business Standard
- Microsoft 365 Business Premium (no list price increase)
Enterprise plans
- Office 365 E3 / E5
- Microsoft 365 E3 / E5
Frontline plans
- Microsoft 365 F1
- Microsoft 365 F3
In addition, Microsoft is adjusting prices for selected standalone products, including offerings in the areas of Windows, Entra ID, EMS, and Microsoft 365 Apps.
Important: These products are not affected
Dynamics 365 licenses are not impacted by the price increase, including:
- Dynamics 365 Business Central
- Dynamics 365 Sales
- Dynamics 365 Customer Service
- Other Dynamics 365 applications
Existing Dynamics 365 pricing structures remain unchanged.
Overview: Sample price adjustments (list prices)
- Microsoft 365 Business Basic
- Microsoft 365 Business Standard
- Microsoft 365 Business Premium
- Office 365 E3
- Microsoft 365 E3
- Microsoft 365 E5
- Microsoft 365 F1
- Microsoft 365 F3
- 6,00 $
- 12,50 $
- 22,00 $
- 23,00 $
- 36,00 $
- 57,00 $
- 2,25 $
- 8,00 $
- 7,00 $
- 14,00 $
- 22,00 $
- 26,00 $
- 39,00 $
- 60,00 $
- 3,00 $
- 10,00 $
- +16 %
- +12 %
- –
- +13 %
- +8 %
- +5 %
- +33 %
- +25 %
Reasons for the price adjustment
Microsoft cites several years of continuous product enhancements that are now becoming standard across many plans, including:
- AI capabilities, such as Copilot Chat in Microsoft 365 Apps
- Enhanced security features, including:
- Microsoft Defender for Office 365 Plan 1 (now included in E3, for example)
- Expanded device and identity management, such as:
- Intune Remote Help and Advanced Analytics
- Security Copilot, included in Microsoft 365 E5
Many of these capabilities were previously licensed separately and are now more deeply integrated into core plans.
New suite: Microsoft 365 E7 starting May 2026
As of May 1, 2026, Microsoft is introducing Microsoft 365 E7, a new suite designed for organizations that want to adopt AI strategically and at scale.
Microsoft 365 E7 combines Microsoft 365 E5, Microsoft 365 Copilot, and Agent 365 to manage, secure, and govern AI agents across the enterprise. The goal is not just to use AI—but to stay in control of it at an organizational level.
The timing is deliberate. Many organizations are currently navigating early Copilot or AI pilots, rising security and compliance requirements, and growing automation demands. Microsoft 365 E7 is designed to close this gap by adding a centralized agent governance layer to existing E5 environments.
To support adoption, Microsoft is launching E7 and Agent 365 with time-limited introductory promotions.
What does this mean for your organization?
The price adjustment is predictable—but it requires early review of your current licensing strategy, especially with regard to:
- upcoming renewals after July 1, 2026
- the right license type for each user
- consolidation or optimization opportunities
- early budget and contract planning
Our recommendation
We’re happy to support you with:
- assessing the concrete impact on your Microsoft 365 environment
- optimizing licenses based on actual needs
- evaluating whether Microsoft 365 E7 makes sense for your organization
- building a future-ready licensing strategy
Talk to an expert or reach out directly to your contact at COSMO CONSULT. We’re happy to help.
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