4 min read

Microsoft Licensing Update: Business Premium 2026 Feature Changes

Picture of Nicole Walker Nicole Walker : February 3, 2026

AI Licensing & Cost Control Microsoft 365
Microsoft Licensing Update: Business Premium 2026 Feature Changes

Microsoft 365 Business Premium is entering 2026 with upgrades that change how mail, security, and AI fit into everyday operations.

The suite is gaining more storage, stronger baseline protections, and deeper Copilot integration across the core Microsoft 365 apps. It is also one of the only plans staying at its current price when the July 1, 2026 adjustments take effect.

These updates aren’t surface‑level. The added 50GB of mailbox capacity, the expanded Copilot Chat experience in Word, Excel, PowerPoint, Outlook, and OneNote, and the new administrative controls for AI usage point to a clear shift in how Microsoft expects organizations to run their environments. A temporary discount on the Business Premium plus Copilot bundle reinforces that direction.

 

What’s Changing in Microsoft 365 Business Premium in 2026?

 

In this episode of "What’s New with Microsoft," Wade Walker (VP, Microsoft Alliance, Sourcepass MCOE) outlines the updates coming to Microsoft 365 Business Premium in 2026 and explains how they affect real environments. The discussion focuses on the expanded mailbox capacity, the strengthened security baseline, the deeper integration of Copilot Chat across core Microsoft 365 applications, and the limited time pricing window for organizations considering the Business Premium and Copilot bundle.

 

 

Timestamped Key Moments

  • 00:00 - Introduction

  • 01:03 - Why Microsoft is adding more value to Business Premium

  • 01:50 - Mailbox capacity increase and day-to-day impact

  • 02:27 - Copilot Chat inside core Microsoft 365 apps

  • 02:55 - New admin visibility and measurement tools for AI

  • 03:21 - Security baseline enhancements arriving in 2026

  • 04:19 - Discount window for Business Premium plus Copilot

  • 05:00 - Business Premium pricing remaining unchanged

  • 05:24 - Real world example of inbox strain and AI assisted workflows

  • 07:22 - Closing thoughts

 

What New Features are Coming to Microsoft 365 Business Premium in 2026?

 

Microsoft added a confirmed 50GB mailbox increase to Business Premium, giving organizations more room to maintain historical communication without relying on archiving workarounds. This update sits within a broader 2026 upgrade cycle and supports the way teams use email as a long‑term record of decisions and activity.

Copilot Chat is also expanding across Word, Excel, PowerPoint, Outlook, and OneNote, creating a consistent conversational workflow inside the applications where most daily work already happens.

These changes strengthen how Business Premium functions as an all‑in‑one productivity and management suite, with AI experiences and core tools becoming more tightly connected.

 

How These 2026 Microsoft 365 Business Premium Changes Affect Daily Workflows

 

The larger mailbox allocation reduces day‑to‑day friction by cutting down on full mailbox alerts and the cleanup that follows. For teams that rely on long email histories to track conversations and decisions, the added space removes the need for manual archiving or PST files and keeps users working without interruption.

Copilot Chat being embedded directly inside Outlook and Teams speeds up routine communication. Tasks like summarizing long threads, drafting replies, or pulling key points from meeting recaps happen faster because the work stays inside the apps people already use. The experience becomes part of the daily workflow rather than a separate step.

New visibility features for AI usage give administrators a clearer view into how Copilot is being adopted. This supports more intentional planning and helps leaders understand where AI is creating value as it becomes a bigger part of everyday work across the organization. 

 

Business Premium and Copilot for Business Bundle Discount Details

 

Microsoft is offering a temporary discount for organizations purchasing Microsoft 365 Business Premium together with Copilot for Business. The two products normally total $43 per user per month, but during the promotional window they are available as a combined offer for $32 per user per month.

The promotion applies to annual commitments and is available for 10 to 300 seats, with eligibility limited to organizations buying during the defined window. 

 

Why Business Premium is Not Increasing in price on July 1, 2026

 

Most Microsoft 365 plans will see price adjustments on July 1, 2026, including Business Basic and Business Standard. Business Premium is one of the exceptions. It remains at $22 per user per month, even as new features are added across the suite.

This pricing stability gives organizations a predictable anchor as they plan for licensing changes. It also positions Business Premium as a steady option at a time when many other plans are shifting, which is a practical consideration for teams evaluating their 2026 budget and renewal timelines.

Microsoft 365 Business Premium 2026 and Copilot Bundle FAQ

Staying Prepared for the 2026 Microsoft 365 Changes

 

The 2026 updates to Microsoft 365 Business Premium introduce meaningful gains in storage, in‑app AI capability, and overall workflow efficiency. These changes create a clearer path for organizations planning how to manage email growth, expand responsible AI usage, and maintain predictable licensing costs as pricing shifts across the broader Microsoft ecosystem. Understanding where these updates directly affect daily operations helps teams make informed decisions about timing, adoption, and budget planning.

If you would like help assessing how these changes fit into your environment or want guidance on evaluating Business Premium and Copilot for Business together, our team at the Sourcepass MCOE can walk through approaches that fit your operational needs.

Subscribe to the Demystifying Microsoft podcast to stay informed about upcoming Microsoft capabilities that influence how work gets done.

 

Contact our Microsoft licensing experts
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