Microsoft raises prices on business 365 plans and adds security features

Microsoft is increasing prices across its commercial 365 suites, including Office 365 E3, Microsoft 365 E3 and E5, Business plans, and Frontline Worker editions. The changes take effect on July 1, 2026, for new customers and those renewing subscriptions. Existing multi-year contracts keep current pricing until they expire.The updates bundle new features into the suites, such as Microsoft Defender for Office 365 Plan 1, Intune Remote Help, and Microsoft Cloud PKI. Standalone products like Teams and Copilot see no changes. Consumer and government plans follow separate adjustments.

Businesses previously bought 365 suites without these bundled security and management tools, often adding them as expensive extras or skipping them to control costs. Subscriptions renewed at known prices, letting teams plan budgets years ahead.The price rise now includes those features by default, forcing a calculation on whether the built-in protections offset the higher bills. Multi-year lock-ins buy time to assess, but annual plans face immediate hits, shifting focus from cost control to feature value amid rising AI and security demands.