Microsoft 365 pricing changes take effect on July 1, 2026. If your organization purchases Microsoft 365 directly from Microsoft or through an authorized Cloud Solution Provider, your next invoice will reflect these changes.
This post covers exactly what is changing, what is not, and what your organization should do before July 1.
What is changing on July 1, 2026
The following prices reflect annual commitment, billed monthly, per user:
| Plan | Previous price | New price | Change |
|---|---|---|---|
| Microsoft 365 Business Basic | $6.00 | $7.00 | +$1.00 |
| Microsoft 365 Business Standard | $12.50 | $14.00 | +$1.50 |
| Exchange Online Plan 1 | $3.00 | $4.00 | +$1.00 |
| Exchange Online Plan 2 | $7.00 | $8.00 | +$1.00 |
| Microsoft 365 Apps for Business | $8.25 | $8.25 | No change |
| SharePoint Plan 1 | $5.00 | $5.00 | No change |
| OneDrive for Business | $5.00 | $5.00 | No change |
| Power BI Pro | $10.00 | $10.00 | No change |
What is not changing
Microsoft 365 Business Premium remains at $22.00 per user per month on an annual commitment. This is significant: Business Premium is already the strongest value in the portfolio by a wide margin, and the price gap between Standard ($14.00) and Premium ($22.00) is now only $8.00 per user per month.
For any organization that handles sensitive data — healthcare, legal, financial services, government contractors — the security capabilities included in Business Premium (Defender for Business, Entra ID P1, Intune, and Azure Information Protection P1) would cost significantly more if purchased individually. The $8.00 delta over Standard is the right call for most organizations that take compliance seriously.
Monthly vs. annual commitment
The monthly commitment price is calculated as the annual rate multiplied by 1.20 for all fixed-rate plans. Post-July 1, this means:
| Plan | Annual | Monthly (no commitment) |
|---|---|---|
| Business Basic | $7.00 | $8.40 |
| Business Standard | $14.00 | $16.80 |
| Business Premium | $22.00 | $26.40 |
The annual commitment is the better value for any organization that expects to remain on the platform for at least 12 months — which describes the overwhelming majority of Microsoft 365 customers.
What your organization should do before July 1
If you are currently on Microsoft 365 through a Cloud Solution Provider, your pricing will update automatically at your next renewal date or on July 1, depending on the terms of your agreement. Contact your CSP to confirm the timing.
If you are evaluating Microsoft 365 for the first time, the July 1 pricing is the pricing to plan against. Any budget or business case built on pre-July 1 prices will be outdated immediately.
If you are comparing Microsoft 365 against Google Workspace, the TCO Calculator on this site uses the current post-July 1 pricing for both platforms and will help you model a genuine apples-to-apples comparison.
Why this matters for organizations buying through a CSP
An authorized Microsoft Cloud Solution Provider does not simply pass the license through. Every Microsoft 365 deployment through 4TH AND BAILEY is configured to CISA SCuBA, NIST SP 800-53, MITRE ATT&CK, and CIS Benchmarks from day one. The license price is the same whether you purchase directly from Microsoft or through an authorized CSP — the difference is what you get alongside the license.
Organizations that buy directly from Microsoft receive a license. Organizations that buy through 4TH AND BAILEY receive a license and an enterprise-grade deployment.
4TH AND BAILEY is an authorized Microsoft Cloud Solution Provider (Partner ID: 22479281) headquartered in Houston, TX. All Microsoft 365 plans referenced in this post are available through m365cloudpro.com.