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In 2025 and 2026, several significant price changes and product updates will take effect for Microsoft business customers. These changes affect Microsoft 365 and Teams packages as well as the new Copilot offering.
Below is a detailed overview of what will change, when it will happen, and how it will impact your company.
1. Microsoft 365 Monthly Billing Price Increase for Annual Contracts
Effective from 1 April 2026
On 1 April 2025, Microsoft introduced a 5% price increase for annual Microsoft 365 subscriptions billed monthly. Between April 2025 and April 2026, this increase will gradually apply to all customers upon contract renewal.
Important to note: The price change takes effect on the renewal date, not for everyone at once.
Who does this affect?
- Annual contract + monthly billing → price increases
- Annual contract + annual billing → price remains unchanged
- Monthly contract → price remains unchanged
Example: Microsoft 365 Business Premium, annual contract, monthly billing
- 31.01.2025–31.01.2026: €20.60 / month
- 31.01.2026–31.01.2027: €21.63 / month
2. Changes to Microsoft 365 and Teams Packages
Microsoft is making changes to its product bundles to offer more flexibility and comply with EU competition requirements.
Price reductions for versions without Teams (monthly pricing):
- M365 E3/E5 and O365 E3/E5: –€6.72
- Office 365 E1: –€1.08
- Business Basic (without Teams): –€0.36
- Business Standard/Premium (without Teams): –€1.08
- Microsoft 365 F3 (without Teams): –€0.60
Price increase for separate Teams licences:
- Microsoft Teams Enterprise and Teams EEA: +€3.72
Teams Essentials, M365 F1 and O365 F3 prices remain unchanged!
Why is Microsoft making these changes?
Microsoft has agreed with the European Commission that prices for packages with and without Teams must differ by a specific margin. This change is now being implemented globally.
Examples of price changes:
- Business Premium EEA (without Teams), monthly licence
- Before: €22.32 / month
- From 05.12.2025: €16.90 / month
- Annual licence, monthly billing
- Before: €18.60 / month
- From 26.02.2026: €14.78 / month
- Annual licence, annual billing
- Before: €223.20 / year
- From 10.10.2026: €211.20 / year
3. New Product: Microsoft 365 Copilot Business
Microsoft has launched a new Copilot licence designed for small and medium-sized businesses (up to 300 users). The price is €21 per user per month, which is cheaper than the standard Copilot (€30). There is no difference in functionality between the products.
Campaigns from 1.12.2025 – 31.03.2026:
- Copilot Business: –15% (€18)
- Business Standard + Copilot (minimum 10 licences): –35% (€26)
- Business Premium + Copilot (minimum 10 licences): –25% (€34)
- Purview Suite for Business Premium: –50% (€6)
4. Local Currency Price Adjustment from 1 February 2026
Microsoft will adjust its service prices to better align with the USD exchange rate. As a result, prices in EUR, SEK, NOK, DKK, CHF will change.
For EUR, an expected price decrease of approximately 7%.
- On-premise software prices will not change
- Azure prices already adjust automatically on a monthly basis
5. General Microsoft 365 Price Increase Effective from 1 July 2026
Microsoft will add new security and management features to its packages, which will result in price increases for several products. EUR prices will be published in July.
Key additions:
- Enhanced email security (Safe Links)
- +50 GB mailbox capacity for Business packages
Examples of price increases (USD):
- Business Basic: 16,7%
- Business Standard: 12%
- Business Premium: price remains unchanged
- Office 365 E1: price remains unchanged
- Office 365 E3: 13%
- Office 365 E5: 7,9%
- Microsoft 365 F1: 33,3%
- Microsoft 365 F3: 25%
- Microsoft 365 E3: 8,3%
- Microsoft 365 E5: 5,3%
- Microsoft 365 Apps for Business: 21,2%
- Microsoft 365 Apps for Enterprise: 16,7%
- Enterprise Mobility + Security E3: 13,2%
- Enterprise Mobility + Security E5: 9,8%
This year will bring both price increases and reductions. The biggest changes depend on billing type, contract duration, and whether Teams is included. We recommend reviewing your licences and renewal dates early, as timely adjustments can lead to significant savings. The Primend team is here to support you and help you find the best licensing solution.