Prepare Your Business for Microsoft Price Increase Effective July 1 2026
- Technology Solutions Worldwide
- 1 hour ago
- 4 min read
Microsoft has announced a price increase for many of its business licenses, set to take effect on July 1, 2026. This change will impact small, medium, and enterprise businesses, as well as healthcare organizations that rely on Microsoft 365 and Office 365 products. Understanding these changes and planning ahead can help your organization avoid unexpected costs and maintain smooth operations.
What Microsoft’s Price Changes Mean for Your Business
Microsoft’s new pricing reflects adjustments across several popular business licenses. Some plans will see increases, while others will remain the same. Here are the key changes:
Microsoft 365 Business Basic will increase from $6 to $7 per user per month.
Microsoft 365 Business Standard will increase from $12.50 to $14 per user per month.
Microsoft 365 Business Premium will stay at $22 per user per month.
Office 365 E1 will remain at $10 per user per month.
Office 365 E3 will increase from $23 to $26 per user per month.
Microsoft 365 E3 will increase from $36 to $39 per user per month.
Microsoft 365 E5 will increase from $57 to $60 per user per month.
Microsoft 365 F1 will increase from $2.25 to $3.00 per user per month.
Microsoft 365 F3 will increase from $8 to $10 per user per month.
These price changes affect a wide range of organizations, from small businesses using basic plans to large enterprises and healthcare providers relying on advanced security and compliance features.
How These Increases Impact Different Business Sizes and Sectors
Small and Medium Businesses
Small and medium businesses often use Microsoft 365 Business Basic or Business Standard plans. The increase of $1 to $1.50 per user per month might seem small, but for companies with dozens or hundreds of users, this adds up quickly. For example, a company with 50 users on Business Standard will see an increase of $75 per month or $900 annually.
Enterprise Organizations
Enterprises typically use Office 365 E3, Microsoft 365 E3, or E5 plans. The increases here are more significant in dollar terms but represent a smaller percentage change. For example, a 500-user enterprise on Microsoft 365 E3 will face an additional $1,500 per month or $18,000 annually.
Healthcare Organizations
Healthcare providers often require advanced security and compliance features found in Microsoft 365 E5 or Office 365 E3 plans. The price increases will affect their IT budgets, especially for organizations with many users. Given the sensitive nature of healthcare data, these organizations must balance cost with compliance and security needs.
How Technology Solutions Worldwide Helps You Save
Technology Solutions Worldwide is a Microsoft Solutions Partner and Cloud Solution Provider (CSP) that offers discounted Microsoft license prices and a two-year price lock for all clients. This means your business can avoid the upcoming price increases by working with them.
Here are their discounted prices compared to Microsoft’s new rates:
| License | Microsoft New Price | Technology Solutions Worldwide Price |
|-----------------------------|-----------------------------------|----------------------------------------------------
| Microsoft 365 Business Basic | $7.00 | $4.00 |
| Microsoft 365 Business Standard |$14.00 | $10.00 |
| Microsoft 365 Business Premium | $22.00 | $16.00 |
| Office 365 E1 | $10.00 | $6.45 |
| Office 365 E3 | $26.00 | $16.00 |
| Office 365 E5 | $25.00 | $25.00 |
| Microsoft 365 E3 | $39.00 | $25.60 |
| Microsoft 365 E5 | $60.00 | $38.00 |
By partnering with Technology Solutions Worldwide, businesses can lock in these lower prices for two years, providing budget certainty and cost savings.
Steps to Prepare Your Business for the Price Increase
Review Your Current Microsoft Licenses
Start by auditing your current Microsoft licenses. Identify which plans your users are on and how many licenses you have. This will give you a clear picture of how the price increase will affect your monthly and annual costs.
Evaluate Your Needs
Consider whether your current licenses match your business needs. Some organizations may find they are paying for features they do not use, while others may need to upgrade for better security or collaboration tools.
Contact Technology Solutions Worldwide for a Quote
Reach out to Technology Solutions Worldwide for a personalized quote. Their discounted pricing and two-year price lock can help you avoid the upcoming increases and manage your IT budget more effectively.
Email: info@techsolworld.com
Phone: (800) 998-2792
Plan Your Budget Accordingly
If you decide to stay with Microsoft’s direct pricing, update your budget to reflect the new costs starting July 1, 2026. Planning ahead will prevent surprises and allow you to allocate resources efficiently.
Why Acting Early Matters
Waiting until the price increase takes effect can lead to rushed decisions and higher costs. Early action gives you time to:
Compare pricing options
Negotiate with providers
Adjust your IT strategy
Train staff on any new tools or plans
This proactive approach helps maintain business continuity and control over expenses.
Final Thoughts on Microsoft’s Price Increase
Microsoft’s price increase will affect many businesses and healthcare organizations starting July 1, 2026. Understanding the new pricing and exploring alternatives like Technology Solutions Worldwide’s discounted licenses can save your organization significant money.
Take the time now to review your current licenses, evaluate your needs, and reach out for personalized pricing. This preparation will help your business stay competitive and secure while managing costs effectively.