7 min read
Microsoft Licensing Update: How to Save on Microsoft 365 in 2026
Microsoft is introducing major changes to Microsoft 365 pricing and licensing in 2026.
3 min read
Nicole Walker
:
January 12, 2026
Microsoft is introducing major changes to Microsoft 365 pricing and licensing in 2026.
Organizations planning renewals, Copilot adoption, or compliance upgrades have a limited window to secure significant discounts before prices rise on July 1, 2026. By acting now, you can lock in savings, avoid unexpected costs, and position your business for the next wave of AI-powered productivity.
In this episode of "What’s New with Microsoft," Wade Walker (VP, Microsoft Alliance, Sourcepass MCOE) breaks down the latest Microsoft 365 discounts, including what’s expiring soon, how to combine offers, and what to expect from the July 2026 price changes. The goal is to help you maximize savings, avoid renewal pitfalls, and get the most out of your Microsoft investment.
00:00 — Introduction: Why Microsoft 365 discounts matter in 2026
00:52 — Overview of current Microsoft 365 and Copilot promotions
01:20 — SMB discounts: Purview Suite, Copilot Business, Business Premium bundles
03:45 — Windows 365 Cloud PC: 20% off for new customers
03:59 — Enterprise offers: E3/E5 three-year term, Purview, Defender, Copilot
06:52 — How to get help, connect with experts, and next steps
1. Microsoft 365 Purview Suite: 50% Off with Copilot (Expires Feb 1, 2026)
2. Microsoft 365 Copilot Business: 15% Off (Expires March 31, 2026)
3. Microsoft 365 Business Premium + Copilot Business Bundle: 25% Off
4. Microsoft 365 Business Standard + Copilot Business Bundle: 35% Off
Who qualifies? New customers bundling Business Standard with Copilot Business.
Promo price: $22/user/month (down from $33.50).
Expiration: March 31, 2026.
5. Windows 365 Cloud PC: 20% Off for New Customers (Expires April 30, 2026)
Who qualifies? New Windows 365 clients (all editions, 10–300 seats).
Why it matters: Cloud PCs enable secure, flexible remote work and device management.
Expiration: April 30, 2026.
6. Microsoft 365 E3/E5 Three-Year Term: 10% Off for New Customers
Who qualifies? New-to-offer customers purchasing 3-year terms (minimum 100 seats).
Why it matters: Locks in current pricing for three years, protecting against the July 2026 price hike.
Expiration: December 31, 2025 (for most offers).
Price increases: Most plans will see a 5–33% increase at renewal after July 1, 2026.
Business Basic: $6 → $7/month (+17%)
Business Standard: $12.50 → $14/month (+12%)
E3: $36 → $39/month (+8%)
E5: $57 → $60/month (+5%)
Frontline plans: Up to 33% increase
Microsoft is raising prices across nearly every Business, Enterprise, and Frontline plan starting July 1, 2026. The company cites over 1,100 new features added in the past year, including advanced AI (Copilot), security, and management tools now bundled into core suites. For most organizations, this means higher renewal costs, but also more value and complexity to navigate.
Most promotional pricing expires between February 1 and March 31, 2026. Renewals after July 1, 2026, will reflect higher list prices.
Organizations with up to 300 seats on Business Basic, Standard, or Premium.
Purchase any Copilot license (Business or Enterprise) and add Purview Suite before February 1, 2026.
Renew before July 1, 2026, to lock in current pricing and take advantage of available promotions. Consider a three-year term for price protection.
Volume-based discount tiers for Online Services ended November 1, 2025. Pricing will now align with Microsoft’s public list price at renewal.
Copilot Business provides the same AI-powered features as Enterprise, but is designed for organizations with up to 300 seats and offers SMB-focused pricing and bundles.
Bundling Business Premium or Standard with Copilot Business, or adding Purview Suite, provides significant savings and enhanced compliance and security features.
Review your current licensing, compare available bundles, and consult with a Microsoft partner or licensing expert to ensure a smooth migration and maximize savings.
Renewals after July 1, 2026, will be subject to the new, higher list prices and may not qualify for current promotional discounts.
As Microsoft prepares to update pricing and licensing in 2026, organizations have a limited window to secure discounts and optimize their renewal approach. By staying informed about the latest offers, planning ahead for renewal dates, and evaluating new bundles, you can manage costs, strengthen compliance, and ensure your environment is ready for future innovation.
If you need help navigating renewal options, want to compare bundles, or have questions about the latest pricing changes, connect with our Microsoft licensing experts. We provide clear guidance to help you make confident decisions and maximize your investment.
For ongoing insights and practical strategies, subscribe to the Demystifying Microsoft podcast. Stay current on updates, best practices, and licensing trends that impact your organization.
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