Microsoft 365 is getting a price update – here’s what’s changing
News|by Kieran Hollingsworth|30 April 2026
Microsoft has announced a global pricing update, coming into effect for new purchases and renewals from 1 July 2026.
For many businesses, this means higher licence costs – but it also creates opportunities to review, optimise, and in some cases, reduce overall spend.
Microsoft 365 pricing – what’s changing
From July, the prices of a number of Microsoft 365 products and SKUs will increase from between 5-15% depending on the type of licence, however, not all plans are increasing.
Notable exceptions include:
- Business Premium
- Office 365 E1
You can check which of your licences will be affected, as well as SKUs that will remain unchanged in Microsoft's updated pricing list. If you’ll be impacted, it’s not too late to act. If you renew ahead of 1 July, you can lock in your current rates for up to three years.
Why are Microsoft 365 prices increasing
While the upcoming price changes may come as a surprise, the additional cost is reflected in features. For example, Microsoft 365 E5 now includes advanced security, compliance and identity protection capabilities, that previously you may have paid for separately.
If you are currently on E3 and pay for add-ons, moving to E5 can simplify your licensing and reduce overall spend, while strengthening security.
This makes now a good time to reassess whether your current licences still make sense. Speak to our team to discuss your options, or review your opportunities to upgrade.
Watch our summary
Our Microsoft 365 Specialist has broken down the Microsoft 365 pricing update, what’s changing, and the opportunities to look out for. Find out what you can do:
Contact Grey Matter
If you have any questions or want some extra information, complete the form below and one of the team will be in touch ASAP. If you have a specific use case, please let us know and we'll help you find the right solution faster.
By submitting this form you are agreeing to our Privacy Policy and Website Terms of Use.
Related News
Grey Matter partners with CrowdStrike to expand cyber security portfolio
Ashburton, Devon, UK – 29 April 2026 – We’ve expanded our cyber security portfolio with the addition of the CrowdStrike Falcon® cyber security platform, bringing AI-native protection to help you consolidate cyber security tools, reduce complexity, and stop breaches. As...
A smarter Google Maps alternative for ISVs: why many are switching to HERE
Google Maps Alternative decisions often come down to cost and licensing. See why ISVs shortlist HERE at renewal
Women in Tech Roundtable 2026
Wed 17 June 2026 11:30 am - 3:00 pm BST
Creating space, confidence and connection The technology sector continues to evolve at pace, but progress isn’t just about innovation – it’s about people. That belief sits at the heart of our Women in Tech Roundtable. An event created to champion...
CyberUK 2026 – what the Security Minister’s speech means for UK businesses
At CyberUK 2026, Dan Jarvis MBE, the Security Minister delivered a clear message to UK organisations – cyber security is no longer a niche IT concern, but a core business risk that demands leadership, collaboration and sustained investment. The threat landscape continues to evolve. The speech reinforced the need for...