// CLIENT ADVISORY · MICROSOFT LICENSING
MICROSOFT 365 — 2026 PRICING UPDATE.
A complete breakdown of every commercial Microsoft 365 suite affected by the global price and packaging update Microsoft announced on December 4, 2025.
Jul 1, 2026
Pricing effective
Jun–Aug 2026
Packaging rollout
30-day
Tenant notice
Last updated: May 16, 2026. All prices shown are USD list per user/month (annual commitment) unless otherwise noted. Standalone Microsoft Teams and Copilot SKUs are not part of this update.
Disclaimer. Pricing in this analysis is informational, based on Microsoft's publicly announced changes. Final pricing is set by Microsoft and your reseller agreement. Contact us for a binding quote.
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// ENTERPRISE SUITES
COMMERCIAL · USD / USER / MONTH
Suites with Teams, followed by the EU "no-Teams" variants.
Enterprise — Suites with Teams
| SKU | What the Bundle Includes | New Capabilities (Summer 2026) | Current | Jul 1, 2026 | Change |
|---|---|---|---|---|---|
| Office 365 E1 | Web & mobile Office apps, Exchange (50 GB), SharePoint, OneDrive (1 TB), Teams. | URL time-of-click protection, Copilot Chat enhancements*, Copilot Chat Analytics | $10.00 | $10.00 | — |
| Office 365 E3 | Desktop Office apps, Exchange (100 GB), SharePoint, OneDrive, Teams, basic DLP & compliance, Intune App Protection (mobile). | Microsoft Defender for Office Plan 1, Copilot Chat enhancements*, Copilot Chat Analytics | $23.00 | $26.00 | +13% |
| Office 365 E5 | Everything in E3 + Defender for Office P2, Advanced eDiscovery, Power BI Pro, Phone System, Audio Conferencing, MyAnalytics. | Copilot Chat enhancements*, Copilot Chat Analytics | $38.00 | $41.00 | +8% |
| Microsoft 365 E3 | Office 365 E3 + Windows 11 Enterprise E3 + EMS E3 (Entra ID P1, Intune, Defender for Endpoint P1, Information Protection P1). | Defender for Office P1, Intune Remote Help, Intune Advanced Analytics, Intune Plan 2, Copilot Chat enhancements* | $36.00 | $39.00 | +8% |
| Microsoft 365 E5 | O365 E5 + Win11 Enterprise E5 + EMS E5 (Entra ID P2, Defender for Identity, Defender for Cloud Apps, Defender for Endpoint P2, Information Protection P2). | Microsoft Security Copilot, Intune Endpoint Privilege Management, Microsoft Cloud PKI, Intune Enterprise App Management | $57.00 | $60.00 | +5% |
Enterprise — Suites without Teams (EU "no-Teams" SKUs)
| SKU | What the Bundle Includes | New Capabilities (Summer 2026) | Current | Jul 1, 2026 | Change |
|---|---|---|---|---|---|
| Office 365 E1no Teams | Same as O365 E1 minus Microsoft Teams (Teams purchased separately). | URL time-of-click protection, Copilot Chat enhancements* | $6.79 | $6.79 | — |
| Office 365 E3no Teams | Same as O365 E3 minus Microsoft Teams. | Defender for Office P1, Copilot Chat enhancements* | $14.45 | $17.45 | +14% |
| Office 365 E5no Teams | Same as O365 E5 minus Microsoft Teams. | Copilot Chat enhancements* | $29.45 | $32.45 | +10% |
| Microsoft 365 E3no Teams | Same as M365 E3 minus Microsoft Teams. | Defender for Office P1, Intune Remote Help, Intune Advanced Analytics, Intune Plan 2 | $27.45 | $30.45 | +11% |
| Microsoft 365 E5no Teams | Same as M365 E5 minus Microsoft Teams. | Security Copilot, Intune EPM, Microsoft Cloud PKI, Intune Enterprise App Management | $48.45 | $51.45 | +6% |
// FRONTLINE SUITES
COMMERCIAL · USD / USER / MONTH
Frontline suites carry the largest percentage increases in this update.
Frontline — Suites with Teams
| SKU | What the Bundle Includes | New Capabilities (Summer 2026) | Current | Jul 1, 2026 | Change |
|---|---|---|---|---|---|
| Microsoft 365 F1 | Frontline-tier identity & access: Teams (chat-focused), Exchange Online Kiosk, SharePoint, Entra ID P1, Intune, Defender for Endpoint P1. No Office desktop apps; web/mobile Office for viewing. | Copilot Chat enhancements*, Copilot Chat Analytics | $2.25 | $3.00 | +33% |
| Microsoft 365 F3 | F1 capabilities + Office web & mobile for editing, Exchange (2 GB), SharePoint, Stream, Win 10/11 Enterprise E3 (F-tier rights), broader EMS. | Copilot Chat enhancements*, Copilot Chat Analytics | $8.00 | $10.00 | +25% |
Frontline — Suites without Teams
| SKU | What the Bundle Includes | New Capabilities (Summer 2026) | Current | Jul 1, 2026 | Change |
|---|---|---|---|---|---|
| Microsoft 365 F1no Teams | Same as M365 F1 minus Microsoft Teams. | Copilot Chat enhancements* | $1.75 | $2.50 | +43% |
| Microsoft 365 F3no Teams | Same as M365 F3 minus Microsoft Teams. | Copilot Chat enhancements* | $6.93 | $8.93 | +29% |
Frontline pays the most, proportionally. M365 F1 (no Teams) +43% is the highest single jump in the entire update.
// BUSINESS SUITES
COMMERCIAL · ≤ 300 SEATS
Suites with Teams, followed by the no-Teams variants.
Business — Suites with Teams
| SKU | What the Bundle Includes | New Capabilities (Summer 2026) | Current | Jul 1, 2026 | Change |
|---|---|---|---|---|---|
| M365 Business Basic | Web & mobile Office, Exchange, Teams, SharePoint, OneDrive (1 TB). Mailbox currently 50 GB — increasing to 100 GB with this update. | +50 GB email, URL time-of-click protection, Copilot Chat enhancements* | $6.00 | $7.00 | +16% |
| M365 Business Standard | Business Basic + Office desktop apps (Word, Excel, PowerPoint, Outlook), Publisher, Access. | +50 GB email, URL time-of-click protection, Copilot Chat enhancements* | $12.50 | $14.00 | +12% |
| M365 Business Premium | Business Standard + Entra ID P1, Intune, Defender for Business, Defender for Office P1, Information Protection P1, Windows 11 Business. | +50 GB email, Copilot Chat enhancements* | $22.00 | $22.00 | — |
Business — Suites without Teams
| SKU | What the Bundle Includes | New Capabilities (Summer 2026) | Current | Jul 1, 2026 | Change |
|---|---|---|---|---|---|
| M365 Business Basicno Teams | Same as Business Basic minus Microsoft Teams. | +50 GB email, URL time-of-click protection, Copilot Chat enhancements* | $4.40 | $5.40 | +23% |
| M365 Business Standardno Teams | Same as Business Standard minus Microsoft Teams. | +50 GB email, URL time-of-click protection, Copilot Chat enhancements* | $9.29 | $10.79 | +16% |
| M365 Business Premiumno Teams | Same as Business Premium minus Microsoft Teams. | +50 GB email, Copilot Chat enhancements* | $18.79 | $18.79 | — |
Premium tiers stay flat. M365 Business Premium and Business Premium (no Teams) hold at $22.00 / $18.79 — no increase. A meaningful planning angle for clients renewing into the upgrade cycle.
// STANDALONE COMPONENTS
COMMERCIAL · USD / USER / MONTH
Standalone components
| SKU | What the Bundle Includes | New Capabilities (Summer 2026) | Current | Jul 1, 2026 | Change |
|---|---|---|---|---|---|
| Purview Suite | Compliance & data governance: Information Protection, Data Lifecycle, Records Management, Insider Risk, Communication Compliance, eDiscovery (Premium), Audit (Premium). | — | $12.00 | $12.00 | — |
| Defender Suite | Unified XDR: Defender for Endpoint P2, Defender for Office P2, Defender for Identity, Defender for Cloud Apps, Defender Vulnerability Management. | — | $12.00 | $12.00 | — |
| Windows E3 | Windows 11 Enterprise upgrade rights, MDOP, AppLocker, Credential Guard, DirectAccess, App-V, UE-V. | Quick Machine Recovery (QMR) for commercial, post-quantum security APIs | $6.63 | $7.63 | +15% |
| Windows E5 | Windows E3 + Microsoft Defender for Endpoint P2. | — | $11.81 | $12.81 | +9% |
| Apps for Business | Office desktop apps (Word, Excel, PowerPoint, Outlook), OneDrive (1 TB). No Teams, Exchange hosting, or SharePoint. ≤ 300 seats. | — | $8.25 | $10.00 | +21% |
| Microsoft 365 Apps | Office desktop apps for enterprise, OneDrive (1 TB). No mailbox, Teams, or SharePoint. No seat cap. | — | $12.00 | $14.00 | +17% |
| EMS E3 | Entra ID P1, Intune, Defender for Endpoint P1 (mobile), Information Protection P1, Advanced Threat Analytics. | Intune Remote Help, Intune Advanced Analytics, Intune Plan 2 | $10.60 | $12.00 | +13% |
| EMS E5 | EMS E3 + Entra ID P2, Defender for Identity, Defender for Cloud Apps, Information Protection P2. | Via EMS E3 additions | $16.40 | $18.00 | +10% |
| Entra ID Plan 1 | Identity & access: Conditional Access, SSO, group-based access, SSPR, MFA, basic governance. | — | $6.00 | $7.00 | +16% |
| Entra ID Plan 2 | Plan 1 + Identity Protection (risk-based CA), PIM, Identity Governance (access reviews, entitlement management). | — | $9.00 | $10.00 | +11% |
| Windows Enterpriseper device | Windows 11 Enterprise device-licensed (shared/kiosk hardware). | Basic resiliency features, Software Assurance | $5.85 | $7.63 | +31% |
| Microsoft 365 Appsper device | Office desktop apps licensed per device (shared-device scenarios). | — | $36.00 | $42.00 | +17% |
Windows Enterprise (per device) sees the steepest hike in the standalone catalog at +31%, but now bundles Software Assurance — a meaningful added value for clients on per-device licensing.
// HEADLINE OBSERVATIONS
WHAT THIS MEANS IN PRACTICE.
- Frontline pays the most, proportionally. F1 (no Teams) +43%, F1 +33%, F3 +25%. Largest swings in the entire update.
- Premium tiers stay flat. M365 Business Premium and Business Premium (no Teams) are unchanged at $22.00 / $18.79.
- Office 365 E1 (with Teams) holds at $10.00 while gaining Defender-grade URL time-of-click protection and Copilot Chat — best raw value-add in the Enterprise tier.
- Existing customers keep current pricing until renewal. Renewal cycle timing is the key planning lever — clients renewing immediately before June can lock in current rates for an additional term.
- Copilot Chat enhancements (inbox/calendar awareness, Word/Excel/PowerPoint agents) reach every commercial suite — a material shift in baseline AI capability without the standalone M365 Copilot SKU.
// LOCK IN CURRENT PRICING
CALL US BEFORE +1-201-751-8001.
Lock in current pricing ahead of the July 1 increase, or let CNS structure your renewal timing to your advantage. Direct line — no queue, no SDR.
Email: microsoft.licensing@insidecns.com
// NONPROFIT PRICING
60–75% DISCOUNT OFF COMMERCIAL.
Nonprofit rates are tied to commercial pricing through a fixed percentage discount, so they move proportionally with this update.
Nonprofit — Enterprise & Frontline (with Teams)
| SKU | Current | Jul 1, 2026 | Change |
|---|---|---|---|
| Office 365 E1 | $2.50 | $2.50 | — |
| Office 365 E3 | $5.75 | $6.50 | +13% |
| Office 365 E5 | $15.20 | $16.40 | +8% |
| Microsoft 365 E3 | $9.00 | $9.75 | +8% |
| Microsoft 365 E5 | $22.80 | $24.00 | +5% |
| Microsoft 365 F1 | $0.56 | $0.75 | +33% |
| Microsoft 365 F3 | $2.00 | $2.50 | +25% |
Nonprofit — Business Suites
| SKU | Current | Jul 1, 2026 | Change |
|---|---|---|---|
| M365 Business Basic | Free | Free | N/A |
| M365 Business Standard | $3.00 | $3.50 | +17% |
| M365 Business Premium | $5.50 | $5.50 | — |
Nonprofit — Standalone Components
| SKU | Current | Jul 1, 2026 | Change |
|---|---|---|---|
| Purview Suite | $4.80 | $4.80 | — |
| Defender Suite | $4.80 | $4.80 | — |
| Windows E3 | $1.65 | $1.90 | +15% |
| Windows E5 | $4.40 | $5.12 | +9% |
| EMS E3 | $2.65 | $3.00 | +13% |
| EMS E5 | $6.56 | $7.20 | +10% |
| Entra ID Plan 1 | $1.50 | $1.75 | +16% |
| Entra ID Plan 2 | $3.60 | $4.00 | +11% |
| Microsoft 365 Apps | $3.00 | $3.50 | +17% |
| M365 Appsper device | $9.00 | $10.50 | +17% |
| Windows Enterpriseper device | $1.46 | $1.91 | +31% |
// GOVERNMENT PRICING
GCC · GCC HIGH · DoD
Government pricing moves in line with commercial. For any SKU exceeding a 10% total increase, federal regulations require the increase to be phased over multiple years (marked with an asterisk).
Government — Pricing Increases
| Commercial SKU | Government Equivalent | Total Increase |
|---|---|---|
| Microsoft 365 E3 | Microsoft 365 G3 — GCC / GCC High / DoD | +8% |
| Microsoft 365 E5 | Microsoft 365 G5 — GCC / GCC High / DoD | +5% |
| Office 365 E1 | Office 365 G1 GCC / E1 GCC High / E1 DoD | — |
| Office 365 E3 | Office 365 G3 GCC / E3 GCC High / E3 DoD | +13%* |
| Office 365 E5 | Office 365 G5 GCC / GCC High / DoD | +8%* |
| M365 Business Premium | Business Premium GCC High | — |
| Microsoft 365 Frontline | Microsoft 365 F1 | +33%* |
| Microsoft 365 Frontline | Microsoft 365 F3 | +25%* |
* Phased over multiple years per federal regulations on increases exceeding 10%.
Government Packaging — Feature Additions Expected in 2026
Government rollout follows separate FedRAMP and data-residency validation; commercial enhancements arrive in government clouds on their own timeline. Highlights:
- M365 G3 (GCC / GCC High / DoD): Intune Advanced Analytics, Defender for Office P1, Intune Plan 2, Copilot Chat enhancements*. GCC also gets Intune Remote Help.
- M365 G5: All G3 additions plus Intune Endpoint Privilege Management, plus (GCC only) Intune Enterprise App Management and Microsoft Cloud PKI.
- O365 G1 / E1 GCC High / E1 DoD: URL time-of-click protection, Copilot Chat enhancements*.
- O365 G3 / E3 GCC High / E3 DoD: Defender for Office P1, Copilot Chat enhancements*.
- M365 Business Premium GCC High: +50 GB email, Copilot Chat enhancements*.
- M365 Frontline F1 / F3: Copilot Chat enhancements*.
*Copilot Chat enhancements include inbox & calendar awareness and access to Word, Excel, and PowerPoint agents.
// CONTACT
TALK TO A LICENSING SPECIALIST.
Direct line into our Microsoft licensing team — no SDR queue, no marketing funnel.
☎ Phone
+1-201-751-8001
Controlled Network Solutions, LLC
325 S. River St., 2nd Floor · Hackensack, NJ 07601
www.controllednetworks.com
List pricing in USD; subject to change and may vary by country and currency. Source: Microsoft Licensing News — 2026 M365 Packaging & Pricing Updates (publication date: February 16, 2026).