Microsoft will raise prices for its commercial Microsoft 365 and Office 365 suites starting July 1, 2026. The company announced increases ranging from 5% to 33% depending on the plans.
Some examples of the price increases :
- Microsoft 365 E3 will cost $39 per user monthly, up from $36
- The E5 plan rises to $60 from $57
- Frontline worker plans see steeper jumps, as F1 increases from $2.25 to $3, while F3 goes from $8 to $10
(image from : Microsoft)
The changes apply globally with local market adjustments.
Microsoft justifies the increases by adding AI capabilities like Copilot Chat to the Office apps in addition to bundling enhanced security features of Defender for Office to the both Office 365 E3 and Microsoft 365 E3 plans.
According to the announcement, over 1100 features were added across Microsoft 365, Security, and SharePoint in the past year, according to Microsoft.
Speaking about price increases, following the September’s regulatory settlement with the European Commission, Microsoft agreed to unbundle Teams from Office suites after antitrust complaints from Slack. The Commission found Microsoft violated competition rules by giving Teams an unfair advantage. As a consequence, European customers can now decide whether they want to purchase Microsoft 365 with, or without Teams.
It is time to speak with your Microsoft specialist, or your preferred partner to identify and optimize your licensing needs.
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