Microsoft price increase 2026: Tips for efficient SaaS license management

Microsoft is adjusting the prices and functional scope of several Microsoft 365 editions as of July 1, 2026. Business and Enterprise plans that companies use for collaboration, communication and document management are affected. In addition to new AI, security and management functions, the license prices will also increase - by up to 33 percent depending on the plan. For existing contracts, the new prices will not apply until the next renewal date.

Companies should therefore check at an early stage what impact the changes will have on budgets, contracts and SaaS costs. We can help you create transparency and adapt your SaaS strategy accordingly.

Which Microsoft 365 plans are affected?

The changes affect the following SaaS subscriptions, among others:

• Microsoft 365 Business Basic
• Microsoft 365 Business Standard
• Office 365 E3 and E5
• Microsoft 365 E3 and E5
• Microsoft 365 F1 and F3

The adjustments apply to commercial and non-profit plans as well as to variants with and without Microsoft Teams.

Overview of the announced price adjustments

Microsoft is increasing the prices of several Microsoft 365 plans in parallel with the new functions.

The following price changes for the SaaS products at a glance:

• Microsoft 365 Business Basic: around +17%
• Microsoft 365 Business Standard: around +12%
• Office 365 E3: around +13%
• Office 365 E5: around +8 %
• Microsoft 365 E3: around +8 %
• Microsoft 365 E5: around +5 %
• Microsoft 365 F1: around +33 %
• Microsoft 365 F3: around +25 %

Various standalone products will also become more expensive, including

• Windows Enterprise E3
• Microsoft 365 Apps for Business
• Enterprise Mobility + Security E3 and E5
• Microsoft Entra ID Plan 1 and 2

No price changes have currently been announced for Microsoft 365 Business Premium, Office 365 E1 and Microsoft 365 Copilot.

Microsoft expects to publish the final euro prices in June 2026.

What new features are being added?

Microsoft is expanding several areas in Microsoft 365, with a focus on AI, security and the management of SaaS applications.

The most important new features include

• Microsoft Cloud PKI
• Copilot Chat with link to inbox and calendar
• Enhanced protection against phishing and malicious links
• Microsoft Defender for Office 365 Plan 1
• Enterprise Application Management
  
• Microsoft Security Copilot
• Intune Remote Help and Intune Advanced Analytics
• Intune Plan 2
  

Many of the new features will be integrated directly into existing Microsoft 365 suites.

What is the timeline for the announced changes?

Microsoft is introducing the changes in two stages

• July 2026: New pricing comes into effect
• Summer 2026: Gradual deployment of the new features

Existing customers will be informed before new features are activated in the Microsoft 365 administration portal.

What do these changes mean for your IT budget?

The new prices will only apply from the next renewal date. Existing contracts will remain unchanged until the end of the current term.

However, companies may still incur significant additional costs.

Example: Microsoft 365 E3 (prices on a US dollar basis)

A company with 100 Microsoft 365 E3 licenses currently pays

• Today: USD 3,600 per month
• From July 2026: USD 3,900 per month

This corresponds to additional costs of:

• USD 3,600 per year
• 10,800 USD over three years

Typical SaaS cost traps

With Microsoft licensing we see the following risks particularly often

• Automatic contract renewals at higher prices
• Non-optimized licensing models
• Lack of transparency about contracts, add-ons and actual usage

What steps should you take now?

Even if it's still July 2026, it's worth analyzing your Microsoft 365 environment early on.

Higher SaaS costs can put a direct strain on your IT budget. At the same time, new AI and security features are changing the requirements for existing license models.

Now is the right time to review your own Microsoft 365 environment and identify optimization potential.

You should check these points:

⬆️ Contract management: check your current contract terms and renewal dates

⬆️ Transparency: Gain transparency regarding the license models, add-ons and additional functions used

⬆️ Usage analysis: Analyze the actual usage of your SaaS licenses and identify overcapacity

⬆️ License strategy: Check whether your current license mix still meets your requirements

⬆️ Budget planning: Calculate the impact of price changes on your budget at an early stage

It can also make strategic sense:

• Conclude contract extensions before July 1, 2026 if possible
• Review longer contract terms
• Remove unused licenses and duplicate add-ons

It is worth taking a closer look at existing add-ons in particular. Some functions could already be included in the new Microsoft 365 suites in the future.

How the USU supports you

Our SaaS management platform gives you a clear overview of licenses, costs, users and shadow IT. Link your Software-as-a-Service tools to determine SSO, browser and exact spend data. We support you in evaluating the effects of Microsoft price adjustments at an early stage and adapting your license strategy accordingly.

This is what we offer you:

• License check: We analyse your current contracts, terms and your license mix.
• Cost estimate: We realistically assess what the price adjustments will mean for your budget.
• License strategy: We work with you to develop a strategy that combines cost control, flexibility and future requirements.
• Recommendations for action: We show you how you can best cushion the price jump on July 1, 2026.

Don't wait until your renewal period is approaching

Do you have questions about the price changes or the new Microsoft 365 functions? Arrange a meeting with our experts today. We'll discuss how these changes will affect your Microsoft strategy. We'll also show you how we can help you stay one step ahead with SaaS spending.

Our experts will help you make the right decisions at the right time.