Microsoft has announced another round of Microsoft 365 pricing and packaging updates, effective July 1, 2026.
That sentence alone is enough to make most business owners stare blankly into the distance, and honestly, fair.
Microsoft licensing has never been known for being simple. It is one part productivity software, one part security platform, and one part maze designed by someone who really enjoys nested spreadsheets. But this update matters because it affects what many businesses pay for email, Office apps, security, identity, and collaboration.
The good news: not every plan is going up.
The better news: Microsoft is adding some useful features into certain plans.
The annoying news: yes, some plans are getting more expensive.
What Is Changing?
Starting July 1, 2026, Microsoft is increasing pricing on several commercial Microsoft 365 plans and standalone products. For small and mid-sized businesses, the biggest items to watch are:
- Microsoft 365 Business Basic from $6.00 to $7.00/user/month (16% increase)
- Microsoft 365 Business Standard from $12.50 to $14.00/user/month (12% increase)
- Microsoft 365 Apps for Business from $8.25 to $10.00/user/month (21% increase)
- Entra Plan 1 from $6.00 to $7.00/user/month (16% increase)
Existing customers remain on their current pricing until renewal, so this is not necessarily an overnight change for everyone. But it is coming, and it should be reviewed before your renewal date sneaks up like it pays rent.
The Big Takeaway: Business Premium is Even Stronger
Microsoft 365 Business Premium is not increasing in price as part of this update. That is important.
Business Premium already includes the core Microsoft 365 tools most companies expect, including email, Office apps, Teams, OneDrive, and SharePoint. But the real value is that it also includes many of the security and management tools businesses increasingly need:
- Multifactor authentication
- Conditional Access
- Microsoft Defender
- Intune device management
- Security policies
- Remote wipe
- Data protection tools
- Identity protection
In plain English, Business Premium is where Microsoft 365 stops being “email and Office” and starts becoming a practical security and management platform. For many businesses, that matters more than whether Word opens faster or Teams changes the button layout for the 47th time.
What Features Are Being Added?
Microsoft is also adding new capabilities to certain plans during the summer 2026 rollout.
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Business Basic and Business Standard are expected to receive:
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- More email storage
- URL time-of-click protection
- Copilot Chat enhancements
- Copilot Chat Analytics
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Business Premium is expected to receive:
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- More email storage
- Copilot Chat enhancements
- Copilot Chat Analytics
The security item that stands out is URL time-of-click protection. That means links can be checked when a user clicks them, not just when the message originally arrives. That is useful because malicious links often change after delivery. Attackers know how email filters work. They are annoying like that.
Copilot Chat enhancements also matter because Microsoft is clearly pushing AI deeper into the Microsoft 365 ecosystem. Whether a business is ready for AI or not, Microsoft is moving that direction. The smarter move is to manage it properly instead of pretending employees will never use it.
Spoiler: they will.
Why This Matters for Business Owners
This is not just a licensing update. It is a budget, security, and planning issue.
If your company is on Business Basic or Business Standard, your monthly Microsoft bill may increase at renewal. If you are using standalone Microsoft 365 Apps for Business, that product is taking one of the larger percentage increases.
This is where the conversation should not be “how do we keep this as cheap as possible?”
That is the wrong question.
The better question is:
Are we on the right plan for how the business actually operates today?
A company using Microsoft 365 only for email and Word is not the same as a company using it for identity, file sharing, security, remote work, device control, and compliance. The license should match the risk profile of the business.
Cheap licensing can get expensive fast if it leaves security gaps wide open.
What Makios Recommends
Our recommendation is simple: go into Makios One Portal and review your Microsoft 365 licensing before renewal, not after.
You want to know:
- Who has which license?
- Which users actually need desktop Office apps?
- Which users only need email?
- Which users need security controls?
- Are you paying for duplicate tools?
- Are you under-licensed for the risk you are carrying?
- Are you using Business Premium where it makes sense?
- Are you using cheaper plans where they make sense?
The goal is not to blindly upgrade everyone. That is lazy, and expensive. The goal is to align the license with the user, the device, the data, and the risk.
For many businesses, Microsoft 365 Business Premium continues to be the strongest all-around plan because it bundles productivity, security, and device management into one platform. For others, a mixed licensing model may make more sense.
But ignoring it is not a strategy. It is just a future ticket with a bad attitude.
The Bottom Line
Microsoft 365 is getting more expensive for several plans in 2026, but Microsoft is also adding more value into the platform. Businesses that handle this well will use the update as a reason to clean up licensing, reduce waste, and strengthen security. Businesses that do nothing will find out at renewal that the cost of 365 went up.
That is usually the more expensive way to learn.
