How NCE Renewals Affect Microsoft Licensing in 2026

Understanding the latest NCE updates is essential for anyone responsible for Microsoft licensing decisions. With new bundles like Defender Suite and Purview Suite, a revised approach to Copilot for Business, and a 5% price increase for annual commit, monthly billing plans, organizations have a unique opportunity to align their licensing strategy with operational needs and budget priorities.

Preparing for NCE Microsoft Licensing Renewals and Bundles in 2026

In this episode of the Demystifying Microsoft podcast, Nathan Taylor (SVP, Global Microsoft Practice Leader at Sourcepass MCOE) provides a clear overview of what is changing for NCE renewals in 2026. The discussion covers the annual renewal window, new pricing structures, and the value of security and compliance bundles designed for small and midsize organizations.

These developments reflect Microsoft’s ongoing commitment to making licensing more predictable, secure, and adaptable for organizations navigating a rapidly evolving technology landscape.

Key Moments 

• 00:00 — Introduction 

• 01:03 — What is NCE and how Microsoft licensing has evolved

• 03:50 — Annual commit, monthly billing, and the 2025–2026 price changes

• 04:20 — The seven-day renewal window: How to adjust license counts

• 05:45 — Strategies for flexible Microsoft licensing: Mixing annual and monthly terms

• 08:17 — What’s new for 2026: 5% price increase, new bundles, and Copilot for Business

• 10:37 — Defender Suite and Purview Suite: Enterprise-grade security for small and midsize organizations

• 14:40 — Bundling Copilot, Defender, and Purview for maximum value

• 16:35 — Why working with a CSP partner matters at renewal

• Outro — How to get help, optimize your Microsoft stack, and connect with experts

Microsoft’s New Commerce Experience (NCE) is the framework that governs how organizations purchase and renew licenses for Microsoft 365, Office 365, and related cloud subscriptions. In 2026, NCE renewals are more than a routine task. They are a strategic opportunity to control costs, right-size your environment, and unlock new security and compliance capabilities.

Key changes for 2026:

• Annual commit, monthly billing plans now carry a 5% price premium at renewal (effective April 1, 2025). Prepaid annual plans avoid this increase.

• The seven-day post-renewal window is your only chance each year to reduce license counts on annual terms.

• New bundles (Defender Suite, Purview Suite, Copilot for Business) offer enterprise-grade features at small business pricing.

The annual renewal window is critical. You can increase license counts at any time, but you can only decrease them during the seven days after your renewal date. Missing this window means you are locked into your current count for another year.

Best practices:

• Audit your current licensing usage and plan ahead. Do not wait until the last minute.

• Consider a mix of annual and monthly licenses for flexibility. Use annual for your core staff and monthly for seasonal or fluctuating needs, even if monthly comes with a 20% premium.

• Review new bundles and add-ons. Many organizations can consolidate security and compliance tools for less.

• 5% Price Increase

  • Annual commit, monthly billing plans will renew at a 5% higher rate. Prepaid annual and true month-to-month plans are not affected.

• Defender Suite for Business Premium

  • $10 per user per month add-on for advanced XDR, identity protection, endpoint security, and cloud app governance.

  • Delivers features previously only available in E5 Security, now accessible to organizations under 300 seats.

• Purview Suite for Business Premium

  • $10 per user per month for advanced compliance, DLP, insider risk, and eDiscovery.

  • Designed for organizations needing robust data governance and regulatory compliance.

• Combined Defender + Purview Suite

  • $15 per user per month for both bundles, offering significant savings compared to buying features separately.

• Copilot for Business

  • New SMB-focused Copilot SKU: $21 per user per month standard, $18 with promo (Dec 2025–Mar 2026), annual commitment required.

• Bundles available: Business Premium plus Copilot for $32 per user per month (promo), with further discounts for Purview Suite add-on.

Renewal season is the ideal time to take a closer look at your Microsoft environment and ensure your subscriptions are aligned with your organization’s needs. By approaching renewals strategically, you can control costs, improve security, and maximize the value of your investment.

Take Control of your NCE Renewal and Licensing Strategy