Over the past few months, Microsoft has been making steady but significant changes to Microsoft 365. Some of these have already taken effect, while others are scheduled for July 2026. Taken together, they signal a clear direction of travel: deeper AI integration, a higher built-in security baseline, and increased costs tied to that investment.
For many organisations, the challenge isn’t just understanding what’s changed, but knowing what it means in practice and how to respond without unnecessary spend or disruption. This update breaks it down in plain terms and explains how Outbound Group is helping customers get ahead of it.
Recent changes you may already be feeling
Some of the most impactful changes have arrived quietly. Microsoft’s move to a pay-as-you-go model for Teams Resource Accounts and Call on Behalf plans has altered how voice and telephony costs are structured. What was once a predictable licence cost is now usage-based, which makes oversight and optimisation far more important.
In parallel, regulatory changes in the European Economic Area mean Microsoft can now sell Microsoft 365 and Office 365 both with and without Teams included. While this creates flexibility, it also adds another decision point when reviewing licences. Choosing the wrong combination can easily lead to higher costs or missing functionality.
What Microsoft is adding to the platform
Alongside licensing changes, Microsoft is continuing to expand what’s included within Microsoft 365, particularly around AI, security, and device management.
Copilot is becoming far more than a standalone assistant. The latest updates allow Copilot Chat to understand context from inboxes and calendars, while Agent Mode is being introduced across Word, Excel, PowerPoint, Outlook, and OneNote. For users, this means AI that feels embedded into everyday work rather than bolted on. For IT teams, new administrative controls provide better visibility and governance over how AI is used across the organisation.
Security and endpoint management are also being strengthened at the licence level. Defender for Office Plan 1 is now included within E3 and Microsoft 365 E3, while Safe Links protection is being extended to lower-tier plans such as E1, Business Basic, and Business Standard. At the same time, Microsoft has expanded what’s included within Intune on E3 and E5, adding capabilities like Remote Help, Endpoint Privilege Management, advanced analytics, and Cloud PKI.
For many organisations, these additions quietly close security gaps that previously required upgrades or third-party tools.
The July 2026 price increases
The most visible change is still to come. From 1 July 2026, Microsoft will increase pricing across several core modern workplace licences. Increases vary by plan, but range from modest uplifts to more noticeable jumps.
Business Basic and Business Standard will both increase, as will Microsoft 365 E3, E5, and Frontline licences. Microsoft has also confirmed increases across Office 365 E3 and Microsoft 365 F3. In percentage terms, some of these changes are relatively small, while others are closer to a 16% rise.
Microsoft has been clear that these increases reflect ongoing investment in AI, security, and management tools. That may be true, but it doesn’t change the reality that many businesses will see their monthly Microsoft spend rise unless they take action.
One important exception worth noting
At this stage, Microsoft has not announced a price increase for Business Premium for organisations with fewer than 300 users. That makes it increasingly compelling for businesses currently using Business Basic or Business Standard.
In many cases, Business Premium already delivers far stronger security and device management capabilities. With other licences becoming more expensive, the value gap becomes even more apparent. This is exactly the kind of scenario where a licence review can unlock better protection without a proportional increase in cost.
What this means in practical terms
These changes don’t mean businesses need to panic. They do mean that assumptions made years ago about licensing may no longer hold up. Features that were once optional are now bundled in, while others are charged differently. Paying for the wrong mix of licences – or failing to use what you already have – becomes more costly over time.
The organisations that will be best placed going into 2026 are those that review early, understand what they’re actually using, and align licences to real business needs rather than legacy decisions.
How Outbound supports you through this
At Outbound, we’re already helping customers navigate these changes with clarity and confidence. That starts with understanding your current Microsoft 365 estate: what you’re licensed for, what’s being used, and where there are gaps or overlaps.
Alongside licence optimisation, we’re offering a free Microsoft 365 Security Assessment, aligned to recognised best-practice frameworks and CIS benchmarks. It’s designed to highlight where your security posture is strong, where improvements are needed, and how to make the most of the tools you may already be paying for.
With price increases on the horizon, the smartest move is planning ahead. A structured review now can help soften the impact of July 2026 and ensure your Microsoft environment is secure, efficient, and genuinely fit for how your business works.
