Prepare Your Business for the Upcoming Microsoft Price Increase and Secure Current Pricing Now
- ACE Team
- 7 hours ago
- 3 min read
Microsoft is set to raise prices on many of its products and services soon. This change will impact businesses of all sizes, increasing annual IT costs if action is delayed. Understanding what is affected and how to respond before the deadline can save your company significant money and avoid unexpected budget strains.
Overview of the Upcoming Microsoft Price Increase
Microsoft has announced pricing updates for selected Microsoft 365 commercial subscriptions and standalone components, effective 1 July 2026. This is the first major adjustment in several years and reflects the growing value and capabilities of Microsoft’s products. The new pricing will apply to new and renewing customers from 1 July 2026. Existing customers will generally move to the new pricing at their next renewal after this date.
Products and Services Affected
The pricing updates affect a range of Microsoft 365 commercial subscriptions and selected Microsoft cloud services. Key products impacted include:
Microsoft 365 Business and Enterprise plans
Office 365 E3, and E5 licenses
These products form the backbone of many companies’ IT infrastructure, so the price increase will affect a broad range of business operations.
How Delaying Renewals May Increase Annual IT Costs
Waiting until after the price increase to renew or upgrade licenses means paying the higher rates for the entire contract period. For example, a business currently paying $20 per user per month for Microsoft 365 E3 could see that rise by 15% or more. Over a year, this adds hundreds or thousands of dollars depending on the number of users.
Delaying renewal also reduces flexibility. Locking in current prices now guarantees cost stability for the contract term, avoiding surprises in budgeting.
Benefits of Locking in Current Pricing Early
Securing your Microsoft licenses before the deadline offers clear advantages:
Cost savings: Avoid paying increased rates for the duration of your contract
Budget certainty: Plan IT expenses with fixed pricing
Simplified renewals: Prevent last-minute rush and potential service interruptions
Opportunity to review licensing: Assess if current plans meet your needs or if upgrades can improve efficiency
Options for Renewing or Upgrading Before the Deadline
Businesses can choose to renew existing licenses at current prices or upgrade to higher-tier plans before the increase. Upgrading early can provide access to new features and better security while avoiding higher costs later.
Working with a Microsoft solutions partner like ACE can help you navigate options, identify the best licensing mix, and complete renewals on time.
Practical Examples of Cost Differences
Consider a company with 100 Microsoft 365 Business Standard users. The subscription price is increasing from USD $12.50 to USD $14.00 per user per month. Over 12 months:
Before increase: 100 users × USD $12.50 × 12 = USD $15,000
After increase: 100 users × USD $14 × 12 = USD $16,800
This means an additional USD $1,800 annually, which business may avoid by renewing or securing their licensing arrangements before the new pricing takes effect.
Tips for Planning Microsoft Licensing Budgets
Review current license usage and identify unused or underused licenses
Forecast user growth to estimate future license needs
Consider multi-year agreements to lock in pricing
Consult with a Microsoft partner to optimize license types and quantities
Monitor Microsoft announcements regularly for pricing updates
How ACE Can Help Your Business
ACE is a trusted Microsoft solutions partner with expertise in licensing and renewals. We help businesses:
Review current Microsoft license portfolios
Identify cost-saving opportunities
Manage renewals and upgrades before price increases
Provide tailored advice based on your business needs
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