What is happening
Microsoft has confirmed that commercial list prices for Microsoft 365 suite subscriptions will increase globally from 1 July 2026. The affected plans include Business Basic, Business Standard, Business Premium, Office 365 E1, Office 365 E3, Microsoft 365 E3, and Microsoft 365 E5. Increases vary by plan: some by a moderate percentage, others more significantly.
It is worth being clear that this is not a straightforward price rise for the same product. Microsoft is adding new features to many plans, including embedding Copilot Chat into Word, Excel, Outlook, and Teams; extending Defender for Office 365 Plan 1 into E3 plans; and adding advanced device management tools to higher tiers. In a number of cases, you will be paying more and receiving noticeably more in return.
What this means for your agreement
Many of our clients are on a Microsoft New Commerce Experience (NCE) agreement, which locks licensing in for a set term. If that applies to you, you will not face any unexpected changes mid-contract. Your pricing and plan remain fixed until your renewal point, at which stage the July changes become relevant.
For clients approaching renewal, the picture is more nuanced. The new features being added to many plans mean that in some cases, the right answer is to stay on the same plan, and in others, it may be worth moving up a tier to replace tools you currently pay for separately. There is no single right answer, and it depends entirely on how your business uses Microsoft 365 today.
That is exactly what we are here to work through with you.
What this means for you
- If you are on an NCE agreement, your pricing is fixed until your renewal. No immediate action is needed from you.
- Microsoft is adding meaningful new features to most plans, not just increasing the price.
- Some of those new features may replace tools you currently pay for separately, potentially offsetting the increase.
- We are contacting all clients individually ahead of their renewal to review options together — you do not need to navigate this alone.
What Carden IT Services is doing for you
- Reviewing every client’s current licence position – We are going through each account to understand your plan, your renewal date, and how the July changes affect you specifically.
- Mapping the new Microsoft 365 features to your existing toolset – Where new features overlap with tools you already pay for, we will flag potential savings.
- Reaching out to all clients before their renewal falls due – We will be in touch with a personalised recommendation ahead of July – you will not be left to figure this out when an invoice arrives.
- Walking you through the new features being added to your plan – So you understand what you are getting for your money and can start using the tools that are relevant to your business.
We will be in touch soon
The Carden IT Services team will be contacting all clients ahead of their renewal to discuss the changes and agree on the best path forward. If your renewal is coming up soon and you would like to talk sooner, reply to this email or get in touch with our team directly.
