Microsoft 365 Price Increase 2026: What Does It Mean for Your Business?

Microsoft 365 Price Increase 2026: What Does It Mean for Your Business?

Microsoft has announced that prices for several Microsoft 365 subscriptions will rise worldwide from 1 July 2026. For businesses in the Netherlands, that means higher monthly costs for the tools you use every day: Outlook, Teams, Word, Excel, OneDrive and SharePoint. But exactly how much are prices going up? Which licences are affected? And what can you do to limit the impact? In this article we give you all the details and practical tips.

Key takeaways (TL;DR)

• From 1 July 2026, Microsoft is raising the prices of several Microsoft 365 Business and Enterprise subscriptions.
• The increase ranges from 5% to 15%, depending on the type of subscription.
• Microsoft 365 Business Basic goes from €5.60 to around €6.50 per user per month.
• Microsoft 365 Business Premium goes from €20.60 to around €23.70 per user per month.
• The reason: Microsoft points to 1,000+ new features over the past year, including AI integrations with Copilot.
• You can limit the impact by optimising your licences, signing annual contracts and cleaning up unused licences.
• Considering an alternative? A comparison with Google Workspace can be worthwhile, but switching is not always the best choice.

Which Prices Are Going Up?

Microsoft has announced the following price increases for the European market. Note: exact prices may vary slightly by region and contract type.

Microsoft 365 Business licences

Microsoft 365 Enterprise licences

What does this mean in euros for your business?

Worked example for a business with 30 employees on Business Standard:

• Current cost: 30 × €11.70 = €351/month = €4,212/year
• New cost: 30 × €13.40 = €402/month = €4,824/year
• Difference: an extra €612 per year

Worked example for a business with 50 employees on Business Premium:

• Current cost: 50 × €20.60 = €1,030/month = €12,360/year
• New cost: 50 × €23.70 = €1,185/month = €14,220/year
• Difference: an extra €1,860 per year

Why Is Microsoft Raising Prices?

Microsoft gives three main reasons for the increase:

1. More than 1,000 new features

Over the past year, Microsoft has rolled out more than 1,000 new features and improvements across the Microsoft 365 ecosystem. Think improved security, new collaboration tools in Teams and productivity gains in the Office apps.

2. AI integration with Copilot

Integrating Microsoft 365 Copilot is a major investment. AI features are being woven ever more deeply into Word, Excel, PowerPoint, Outlook and Teams. Although Copilot is sold as a separate licence, Microsoft is also investing in baseline AI features that will become available across all subscriptions.

3. Improved security

Microsoft has invested heavily in security features. Threat protection, Conditional Access policies and improved compliance tools are part of the Enterprise subscriptions, and the Business subscriptions also benefit from better spam filtering, phishing protection and malware detection.

What Do You Actually Get in Return?

Let's be honest: the price rise may feel unfair, but Microsoft 365 in 2026 is a very different product from what it was a few years ago. Here is what has been added recently:

Productivity:

• Microsoft Loop for real-time collaboration
• Improved Microsoft Planner (merging To Do, Planner and Project)
• AI-driven suggestions in Word, Excel and PowerPoint
• Improved search across all Microsoft 365 apps

Communication:

• Teams Premium features (AI notes, translation, recap)
• Improved Teams Rooms and hybrid meeting features
• Queues app for customer service in Teams
• Town halls for large meetings of up to 10,000 attendees

Security:

• Improved anti-phishing in Exchange Online
• Conditional Access improvements
• Better integration with Microsoft Defender
• Advanced audit logging

Administration:

• Improved admin centre with AI insights
• Automatic licence recommendations
• Improved reporting and compliance tools

7 Tips to Limit the Impact

1. Audit your licences - today

Most businesses pay for licences they barely use, if at all. Carry out a thorough audit:

• How many licences do you have? How many are actively used?
• Does every employee need the same subscription?
• Are there employees who only need email? They can often manage with a Basic licence.

Tip: In the Microsoft 365 admin centre, the "Usage reports" section shows which employees actually use which apps.

2. Mix your licences

Not everyone needs the same licence. A receptionist who only uses email and Teams is well served by Business Basic (€6.50/month). A project manager who works in Word, Excel and PowerPoint every day needs Business Standard. And only employees who need advanced security get Business Premium.

Savings example for 30 employees:

• 30× Business Standard: €402/month
• Mix (10× Basic + 15× Standard + 5× Premium): €293.50/month
• Saving: €108.50/month = €1,302/year

3. Sign annual contracts before July 2026

If you sign or renew an annual contract before 1 July 2026, you lock in current prices for 12 months. That gives you an extra year to optimise your licensing strategy.

4. Consider outsourcing Microsoft 365 management

A Microsoft 365 partner can help you optimise your licences, implement all the features you're paying for and manage your environment. Many businesses pay for features they don't use simply because they don't know they exist.

5. Make full use of what you have

Many businesses use only 20-30% of what their Microsoft 365 subscription offers. They pay for Business Premium but really only use Outlook and Word. Make sure you get the most out of your investment:

• Use OneDrive and SharePoint for document management (no separate file server needed)
• Use Microsoft Planner for project management (no need for Asana or Monday.com)
• Use Power Automate for workflow automation
• Use Microsoft Forms for surveys and forms
• Use Microsoft Bookings to schedule appointments

6. Evaluate alternatives, but be realistic

Google Workspace is an alternative, but switching is not straightforward. Consider:

• Migration costs: €500-€2,000 per employee (data, training, integrations)
• Compatibility: do your customers and partners work with Office? Then Google Docs can cause friction
• Functionality: Google Workspace lacks some of the enterprise features Microsoft 365 offers
• For most SMEs, optimising Microsoft 365 is cheaper than switching

Read our in-depth Microsoft 365 vs Google Workspace comparison for all the details.

7. Invest in training

It sounds counterintuitive, but investing in training for your staff can save money. When your team learns to use all the tools effectively, you need fewer separate software licences and everyone works more productively.

Impact on Managed IT Costs

The Microsoft 365 price increase also affects the total cost of outsourcing IT management. Many managed IT providers pass licence costs on to their customers. Ask your IT partner:

• Are licence costs passed on one-to-one, or with a mark-up?
• Can you get a volume discount through the partner?
• Can the partner help you optimise your licences?

At TRON Group we pass on licence costs transparently, without a mark-up. We also actively help you optimise your licence mix, so you never pay more than you need to.

Frequently Asked Questions

When exactly does the price increase take effect?

The new prices apply from 1 July 2026 to new subscriptions and renewals. If you have an annual contract that expires after July 2026, the increase only applies at your next renewal.

Does the price increase also apply to non-profit and education?

Microsoft has announced that the increases for non-profit and education licences are more limited. Contact your Microsoft partner for the exact details.

Can I downgrade my licence to save costs?

Yes, you can switch to a cheaper licence at any time. Bear in mind that you will lose certain features. Start by taking stock of which features you actually use.

Is Microsoft 365 Copilot getting more expensive too?

The Copilot licence (€28.40/user/month) is not being increased for now. Its price was only set in 2025 and Microsoft has indicated it will keep it stable for the time being to encourage adoption.

What if I do nothing?

If you do nothing, the new prices take effect automatically at your next renewal. You will then pay more without having optimised your licences. Taking action before July 2026 is therefore advisable.

Are discounts available for larger businesses?

Yes. With larger numbers of licences (25+), you can often negotiate a volume discount through a Microsoft partner. There are also benefits to combining several Microsoft services (bundling).

What Should You Do Now?

The price increase is coming. That much is certain. But you still have time to prepare. Here is our advice:

Today:

1. Check how many licences you have and of which types
2. Review the usage reports in the admin centre

This month: 3. Identify unused or underused licences 4. Draw up a plan for licence optimisation

Before 1 July 2026: 5. Sign an annual contract at current prices 6. Implement your new licence mix 7. Train employees to make use of all the features

Want help optimising your Microsoft 365 licences? TRON Group is an official Microsoft partner and is happy to help. We carry out a free licence audit and advise you on the best approach. Call +31 85 303 5869 or get in touch for a no-obligation conversation.