Microsoft has announced a wave of updates across Microsoft 365, combining price changes with new promotions, Copilot opportunities and enhanced security capabilities. For Microsoft Partners and Cloud Solution Providers it’s a chance to proactively guide customers, optimise environments and open new revenue streams.
Microsoft 365 pricing changes and what they mean
From 1 July 2026, Microsoft will increase prices across Microsoft 365, impacting both new and renewing subscriptions. These adjustments range from 5% up to 33%, depending on the plan, with final AUD pricing to be confirmed closer to June 1. Read our detailed Knowledge Base article here.
While some plans will see moderate increases, others are more significant, making this one of the most important pricing shifts in recent years. Notably, Business Premium pricing remains unchanged, reinforcing Microsoft’s strategy to position it as the default platform for SMB customers.
These increases are not happening in isolation. Microsoft is clearly using pricing to influence behaviour – encouraging partners and customers to:
- Move toward higher-value, more secure SKUs like Business Premium
- Adopt bundled offerings that include Copilot
- Commit earlier to lock in pricing
There is good news though: Microsoft has introduced monthly billing options for Copilot Business and bundles, giving customers who aren’t ready to commit to Copilot a bit more flexibility (at a ~20% premium).
Now is the time to start conversations with clients to show them you are proactively protecting their interests: review licencing ahead of renewals, lock in annual terms before July and rationalise unused or underused licences.
Promotions and incentives: act now
Alongside pricing changes, Microsoft has extended a range of promotions through to 30 June 2026:
- Discounts on Copilot Business and bundled Microsoft 365 offers
- 50% off Microsoft Purview for Business Premium customers
- CSP Partner incentives delivering up to 18%+ total return on Copilot and bundled sales.
These promotions are designed to accelerate adoption of AI and security capabilities ahead of the pricing changes – a carrot and a stick for clients. MSPs who act early can help customers offset future costs while increasing their own margin.
Copilot Business: a major opportunity
For SMB customers, Copilot Business offers AI embedded directly into Microsoft 365 apps, access to multiple leading AI models as well as reporting tools such as Viva Insight to measure Copilot adoption, impact, and usage.
Many users already have access to Copilot Chat within Microsoft 365, providing a low-friction starting point. From there, you can drive targeted adoption by identifying high-value use cases and users.
Beyond licensing, the real opportunity lies in services: helping customers adopt AI effectively, measure usage, and integrate it into business workflows.
With great power comes great responsibility
AI adoption is accelerating, introducing new risks along with productivity. Many users are already using external AI tools, potentially exposing sensitive data without realising it.
By keeping data within the Microsoft 365 tenant, we can ensure it is not used to train external models or risk any client data exposure, but this protection depends on proper configuration. Without the right controls, AI can surface sensitive internal data which is why MSPs play a critical role in helping customers keep their data safe. Solutions like Microsoft Purview and Defender enable us to move beyond detection to automated protection… particularly critical in an AI-driven environment.
Turning change into opportunity
There’s not much we can do when prices increase, but by taking a proactive approach – optimising licencing, leveraging promotions, introducing Copilot strategically, and embedding security best practices – partners can protect margins, strengthen customer relationships and create new revenue streams. Manage Protect supports partners to get the most out of Microsoft through our MP365 Advantage program – let’s chat about how we can help you!
To learn more, check out our recent webinar with Microsoft legend Philip Meyer: Microsoft Updates 2026 Licensing Changes and Promotions Explained
