Microsoft 365 2026 Licensing Update | IT.ie
Licensing Advisory 2026

Microsoft 365:
Global Price Update

Microsoft is adjusting pricing across core commercial suites to reflect significant innovations in AI, security, and productivity. Explore how this impacts your Irish SME licensing strategy.

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M365 2026

Effective July 1st 2026

Commercial Pricing Adjustments

Below are the percentage increases impacting Irish SME core licenses. Business Premium remains at 0% adjustment, providing a significant opportunity for security consolidation.

License SKU Increase Impact
Microsoft 365 Business Basic +16% SME Entry Tier
Microsoft 365 Business Standard +12% Productivity Focused
Microsoft 365 Business Premium 0% NO CHANGE Highest Value Tier
Office 365 E3 +13% Enterprise Legacy
Microsoft 365 E3 +8% Full Enterprise Suite
Microsoft 365 E5 +5% Advanced Compliance

The Upgrade Advantage

With price increases hitting Standard and Basic tiers, Business Premium is now the most cost-effective path to modern security. Review why Premium is the benchmark for Irish SMEs.

Upgrade Benefits

Narrowing the Price Gap

As licensing costs adjust, the delta between "Standard" productivity and "Premium" security has narrowed significantly. For a marginal monthly difference, your business gains an enterprise-grade security stack that traditionally cost thousands as stand-alone additions.

Core Capability Standard Premium
Office Apps & Cloud Storage
Teams, Exchange & SharePoint
Defender for Business (EDR) Included
Intune Device Management Included
Conditional Access Policies Included
Advanced Phishing Protection Included
Windows AutoPilot Deployment Included
Azure Virtual Desktop Rights Included

Premium includes full End-Point Detection and Response (EDR) and Unified Endpoint Management (UEM) as standard.

Microsoft 365 Price Changes & New Capabilities (2026) – FAQs

Common questions for Irish business customers regarding the July 2026 update.

Microsoft is introducing new capabilities across Microsoft 365 plans, alongside pricing updates effective from 1 July 2026. These updates reflect added value in AI, security, and device management.

Pricing updates will apply from 1 July 2026, while new features and packaging changes will begin rolling out from June 2026.

No. If you are an existing customer, your pricing remains the same until your next renewal date.

Microsoft is increasing prices due to significant investment in:

  • AI capabilities (including Copilot and automation)
  • Advanced cybersecurity features
  • Enhanced device and endpoint management

These changes aim to deliver a more secure, AI-powered workplace by default.

Key additions across plans include:

  • Enhanced Copilot Chat capabilities with deeper integration
  • Improved email and link security protections
  • Expanded Microsoft Intune device management features
  • Additional security tools like Defender for Office 365
  • Introduction of Security Copilot capabilities in higher-tier plans

Most commercial plans will see moderate price increases, though some plans may remain unchanged. Increases vary depending on the licence and region.

No. Pricing is adjusted by region and currency, so Irish businesses may see different final pricing compared to US pricing.

Not immediately. However, it is strongly recommended to:

  • Review your current licences
  • Assess whether you are fully utilising your existing features
  • Plan ahead before your next renewal

Early planning can help avoid unnecessary cost increases and optimise your setup.

Microsoft continues to offer plans with and without Teams, particularly in Europe. Pricing and packaging may differ depending on your current setup.

Some AI-powered features are being expanded, but full Microsoft 365 Copilot functionality still requires a separate add-on licence for deeper integration across apps and data.

At IT.ie, we help Irish businesses:

  • Understand the real impact of these changes
  • Optimise licensing to avoid overpaying
  • Align Microsoft 365 with security, compliance, and AI readiness
  • Prepare for frameworks like NIS2

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