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Microsoft Licensing Updates: Key Changes for July 2026

A clear look at what’s changing, what you’re getting, and how to make the transition work for your business.

What’s Happening

Microsoft has announced pricing and feature changes across its licensing portfolio. Here’s what you need to know:

  • Starting July 1, 2026, clients will see a price increase upon renewal.
  • Microsoft is introducing additional security, storage, and AI capabilities. These features will begin rolling out in June 2026.

Microsoft 365 Pricing Changes by Product

m365 pricing table

Government and nonprofit pricing will adjust as well.

How These Changes Affect You

  • Existing subscriptions will remain on current pricing until renewal.
  • New subscriptions purchased after July 1 will reflect the updated pricing.
  • New capabilities will begin rolling out in June 2026. Customers will receive a 30-day notice in Message Center before updates become available in their tenant.

How WorkSmart Can Help

As Microsoft evolves its licensing, we help clients navigate these changes with clarity and confidence – not guesswork.

  • Cost management – We align licensing with actual usage and evaluate the most effective billing structures to reduce unnecessary spend.
  • Value optimization – We make sure you’re adopting the security, compliance, and productivity features that support real business outcomes – not just paying for them.

 

We turn licensing changes into an opportunity to tighten spend, reduce risk, and make sure your Microsoft investment is working as hard as your team is.