Microsoft Pricing, Packeting and Funding Update — July 2026

• Microsoft 365 E3: +8%
• Microsoft 365 E5: +5%
• Office 365 E3: +13%
• Office 365 E5: +8%
• Microsoft 365 Business Basic: +16% (free for NfP)
• Microsoft 365 Business Standard: +12%-17%(NfP)
• Microsoft 365 F1: +33%
• Microsoft 365 F3: +25%
• EMS E3: +13%
• EMS E5: +10%
• Entra ID Plan 1: +16%
• Entra ID Plan 2: +11%
• Windows E3: +15%
• Windows E5: +9%
• Microsoft 365 Apps: +17%

Please note that Microsoft 365 Business Premium, Purview Suite, Defender Suite, standalone Microsoft Teams and standalone Microsoft Copilot licences are not included in this round of price increases. Microsoft 365 Business Basic also remains free for eligible not-for-profit customers.

More Than a Price Change: Additional Value Is Being Added

Alongside the pricing update, Microsoft is enhancing many Microsoft 365 subscriptions with additional security, management and AI capabilities rolling out through summer 2026. These additions are designed to help organisations strengthen security, improve IT management and accelerate productivity within their existing Microsoft 365 investment, including:

• Microsoft Defender for Office 365 Plan

• Intune Remote Help

• Intune Advanced Analytics

• Intune Plan 2 capabilities

• Copilot Chat enhancements and analytics

• Enhanced phishing protection

• Additional mailbox capacity for Business plans

These additions are intended to reduce reliance on separate add-ons while increasing the value of core Microsoft 365 subscriptions. While pricing changes are never welcome, this is a timely opportunity to review your Microsoft estate, ensure licences are aligned to user needs, and identify where new capabilities can support your wider security, compliance and AI priorities.

How Core Can Support You

Core can help you take a proactive approach to these changes by reviewing:

• Upcoming renewal dates
• Licence utilisation and inactive users
• Unassigned licences
• Opportunities to move from monthly to annual or multi-year commitments
• Existing security and compliance add-ons that may now be included within Microsoft 365 suites
• Whether users are on the most appropriate licence tier for their role

FY27 Funding and Promotional Opportunities

With the start of Microsoft’s FY27, there may also be new promotional and partner-led funding opportunities available to help customers assess, plan and accelerate adoption across Microsoft 365, Copilot, security and data protection. Subject to eligibility and Microsoft availability, customers may be able to benefit from:

• 15% discount on Microsoft 365 E5 for qualifying new customers available until 1st October 2026
• 10% discount on selected 3-year commitments
• 20% discount on Microsoft 365 E3 for qualifying customers available until 1st January 2027
• 50% discount on Purview with Copilot Subscription for net-new seats available until 1st July 2027
• Promotional pricing on Microsoft Copilot for eligible customers available until 1st October 2026
• Windows 365 promotional offers for eligible subscriptions available until 30th September 2026

If you are considering changes to your Microsoft licensing, upcoming renewals or wider adoption plans, now is a good time to review your options. Your Core Account Manager can help confirm eligibility for any available promotions and advise on the best route forward.

Partner-Led Funded Engagements Available Through Core

Core is able to deliver a range of Microsoft partner-led funded engagements that can help you explore practical next steps, validate priorities and accelerate adoption. These currently include:

AI, Copilot and Agent Solutions

• FA for Copilot: Envisioning & PoC
• FA for Copilot: Copilot Deployment Accelerator
• FA for Copilot: Agent Solution Deployment Accelerator

Security, Data Protection and Compliance

• Cloud Security Envisioning Workshop
• Data Security Envisioning Workshop
• Threat Protection Envisioning Workshop
  
  

Next Steps

If you would like Core to review your Microsoft estate and identify:

• Renewal risks
• Cost-saving opportunities
• Available promotions
• Security and AI adoption opportunities

Please contact your Core Account Manager and we will be happy to help you understand the impact of these changes, review your options and identify any relevant Microsoft-funded opportunities.

Information based on Microsoft’s Microsoft 365 Pricing and Packaging Updates announcement. Pricing, promotions and funded engagement availability are subject to Microsoft eligibility criteria, regional pricing, currency adjustments and programme availability.