Microsoft 365 Pricing Changes and New Capabilities: What Businesses Should Know Before July 2026

Microsoft has announced a significant update to Microsoft 365 that combines new AI and security capabilities with a pricing adjustment effective July 1, 2026. These changes reflect Microsoft’s continued investment in artificial intelligence, cybersecurity, and modern workplace management across its commercial Microsoft 365 offerings.

For organizations using Microsoft 365 today, this update presents both new opportunities and important planning considerations. While the platform will deliver increased value through enhanced features, businesses should take time now to understand how these changes may affect their licensing strategy and budget.

As a Microsoft Solutions Partner, Velvot’s role is to help you clearly understand what is changing, why it matters, and how to prepare well ahead of 2026.

Why This Update Matters for Your Organization

The July 2026 update may influence how your organization approaches licensing, security, and productivity planning. With more capabilities being included directly in Microsoft 365 plans, it becomes increasingly important to confirm that your current subscriptions still align with how your teams work.

For many businesses, this is an opportunity to:

• Reassess Microsoft 365 usage
• Validate that the right plans are in place
• Prepare financially for the upcoming pricing adjustment

Proactive review now helps avoid surprises later and ensures your Microsoft 365 environment continues to support your operational and security goals.

Why Microsoft Is Updating Microsoft 365 Pricing

Microsoft is evolving Microsoft 365 to meet the growing demands of modern workplaces. This includes deeper investment in:

• Artificial intelligence
• Advanced security and threat protection
• Endpoint and device management
• Business continuity and resilience

The pricing update scheduled for July 2026 reflects the expanded capabilities being built into the service, making Microsoft 365 a more comprehensive, intelligent platform out of the box.

What’s New for Microsoft 365 Enterprise Plans

Organizations using Microsoft 365 Enterprise suites can expect several advanced enhancements designed to strengthen security and resilience, including:

• Enhanced endpoint and device management tools
• Expanded Microsoft Defender protections
• Windows Resiliency Initiative (WRI) features to support faster recovery
• Security Copilot intelligence for AI-driven security operations

Together, these updates help enterprise organizations operate with greater confidence, recover more quickly from disruptions, and gain actionable insights from their security posture.

What’s New for Microsoft 365 Business Plans

Microsoft 365 Business suites will also receive meaningful improvements aimed at small and mid-sized organizations, including:

• Expanded email storage
• Added protection through SafeLinks Lite to defend users against malicious links

These enhancements improve security and productivity without adding unnecessary complexity to daily operations.

Microsoft 365 Pricing Changes Effective July 1, 2026

Microsoft has confirmed that global pricing adjustments for Microsoft 365 commercial suites will take effect on July 1, 2026. While pricing may vary by market, the adjustment applies broadly across eligible plans and reflects the additional AI, security, and management capabilities being introduced.

Plans affected include:

• Basic
• Standard
• E3
• E5
• F1
• F3

How to Prepare for the 2026 Microsoft 365 Update

1. Review Your Current Microsoft 365 Licenses

Confirm that your existing plans still support your workflows, security requirements, and long-term objectives.

2. Assess Actual Usage Across Teams

Understanding how users engage with Microsoft 365 tools helps identify unused licenses, optimization opportunities, or plan mismatches.

3. Evaluate the New Capabilities Being Added

Features such as enhanced security protections or SafeLinks Lite may reduce reliance on third-party tools or manual processes.

4. Plan Ahead for Budget and Renewals

Knowing when your subscriptions renew can create opportunities to adjust plans or align timelines ahead of the pricing change.

How Velvot Supports Your Transition

At Velvot, we help organizations navigate Microsoft changes with clarity, structure, and confidence. With over 10 years of experience supporting businesses with Microsoft technologies, we work closely with you to:

• Review your current Microsoft 365 environment
• Assess licensing efficiency and usage patterns
• Explain how new capabilities impact your organization
• Recommend cost-effective, future-ready licensing options

Whether you are preparing for renewals, evaluating AI capabilities, or planning ahead for the 2026 pricing update, our team ensures your Microsoft 365 investment remains aligned with your business needs.

Need Help Planning for Microsoft 365 in 2026?

If you would like support reviewing your Microsoft 365 environment or preparing for the July 2026 updates, Velvot is ready to help.

Contact us at gtm@velvot.com to schedule a Microsoft Teams session with our experts.