Microsoft 365 Pricing Is Changing in July: Is Your Business on the Right Plan?
May 11, 2026
Microsoft has announced pricing changes for a range of Microsoft 365 plans, taking effect from 1 July 2026.
This does not mean your current pricing will automatically change on 1 July.
If your business is already on an active agreement, your current pricing will remain in place for the duration of that agreement. The new pricing will generally apply when your agreement is due for renewal.
However, this upcoming change makes now a good time to review your current Microsoft 365 licensing and make sure your business is on the right plan moving forward.
Why review your Microsoft 365 licences?
A Microsoft 365 licence review helps identify whether your current setup is still practical, cost-effective and secure.
It can help uncover:
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Unused or unnecessary licences
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Staff on plans that no longer suit their role
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Missed security or device management features
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Opportunities to simplify your licensing
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Whether your current plan still offers the best long-term value
In some cases, businesses may be paying for licences they no longer need. In other cases, they may be using a lower-level plan that does not provide the security and management features their business now requires.
Not all plans are changing
One important thing to note is that Microsoft 365 Business Premium is not currently listed as receiving a price increase in the July 2026 pricing update, while other commonly used plans such as Business Basic and Business Standard are listed with increases.
That does not automatically mean every business should move every user to Business Premium. However, it does make this the right time to review whether Business Premium may be a better fit for some users or for your business overall.
Why Business Premium may be worth considering
Microsoft 365 Business Premium includes the familiar Microsoft 365 apps and services, along with additional security and device management capabilities. Microsoft describes Business Premium as including advanced cyberthreat protection and device management features compared with the lower business plans.
For businesses that want stronger protection around their users, devices and data, Business Premium can often provide better long-term value than simply choosing the lowest-cost licence.
Business Premium may be suitable for businesses wanting to improve areas such as:
• Cyber security
• Device protection
• Identity and access control
• Data protection
• Management of business devices
• Overall Microsoft 365 security posture
As cyber threats continue to evolve, having the right licensing in place is an important part of protecting your business.
The right licence depends on the user
Not every staff member uses Microsoft 365 in the same way.
Some users may need access to the full desktop apps. Others may only need email and basic cloud services. Some staff may require stronger security, device management or access controls based on their role.
That is why a licence review is useful. It helps match each user to the licence that best suits their role, instead of relying on a one-size-fits-all setup.
Why review before your renewal?
Even though your current agreement pricing may not change immediately, waiting until renewal time can make decisions feel rushed.
Reviewing your Microsoft 365 licences now gives your business time to:
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Understand which plans may be affected
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Check whether all current licences are still needed
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Review whether users are on the right plan
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Consider whether Business Premium may be more suitable
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Prepare for any pricing changes before your agreement renews
A small review now can help avoid unnecessary costs, confusion or security gaps later.
Gecko can help
Gecko can review your current Microsoft 365 licensing and help identify whether any changes are recommended before your agreement is due for renewal.
This may include checking your active licences, reviewing user requirements, identifying unused licences, and advising whether Microsoft 365 Business Premium may be suitable for your business.
If you would like Gecko to review your Microsoft 365 setup, please contact our team.
