Subject: Important Update Microsoft 365 Pricing and Packaging Updates
Dear client
On December 4, Microsoft announced changes to prices and features for some Microsoft 365 business products.
This includes Enterprise, Business, Frontline, and Government plans.
These changes do not include standalone Microsoft Teams or Copilot products.
When the changes happen
New prices start: July 1, 2026 – Our billing runs 25 June for July 2026
New features (packaging) start rolling out: June 2026
Current customers: Keep their old prices until they renew
Customers will get at least 30 days notice before feature changes appear
Price changes (simple summary)
Many plans will cost more starting July 2026
Price increases vary depending on the plan (some small, some larger)
Some plans stay the same price
Examples:
Enterprise plans: small to moderate increases
Frontline plans: larger increases (up to ~40%)
Business plans: moderate increases
Standalone products (like security or Windows plans): also increasing
Plan updates (in simple terms)
Enterprise plans:
More security tools
New AI (Copilot) features
Extra device management tools
Frontline plans:
Mostly Copilot (AI) improvements
Business plans:
Larger email storage (50GB)
Better security for links
Copilot AI improvements
Standalone products:
Some get new security and recovery features
Others stay the same
Nonprofit pricing
Nonprofits still get big discounts (60–75%)
Prices will increase slightly, following the commercial price changes
Some plans remain free or low-cost
Key takeaway
Most Microsoft 365 business products will cost more from July 2026
New features and tools will be added starting June 2026
Existing customers won’t pay more until they renew
Detailed Pricing Breakdown can be found here: https://www.microsoft.com/en-us/licensing/news/2026-m365-packaging-pricing-updates
Feature (packaging) updates
Starting June 2026, Microsoft will add new features to many plans.
Common new features include:
Better security protection (like safer email links)
Improvements to Copilot chat (AI assistant features)
More analytics and insights
New device and app management tools (Intune features)
These updates will be fully rolled out by August 1, 2026.
