Microsoft 365 Costs Are Rising Again in 2026. Are You Prepared?
Microsoft 365 plays a crucial role in how companies operate every day. Email, collaboration, file sharing, identity, and security all run through it. For many businesses, especially across St. Peters and the greater St. Louis area, Microsoft 365 is essential to keeping operations moving.
Microsoft has announced another round of price increases for many Microsoft 365 plans beginning July 2026. While this may feel like another subscription change, it is an important moment for businesses to review their licensing, costs, and long-term technology planning.
What Is Changing in 2026
The new pricing will affect most Microsoft 365 Business and Enterprise plans once renewals occur after July 2026. Microsoft states that the increase reflects ongoing investments in areas such as:
Security enhancements
Improved device and user management
Additional built-in AI capabilities
Features that support remote and hybrid work
These updates add value, especially for productivity and protection, but they also increase the long-term cost of the platform. Microsoft last raised prices in 2022, and this new update signals that pricing adjustments are likely to continue in the future.
The Real Impact for Businesses in St. Louis
While the increase is expected to range from 10 to 16 percent, depending on the plan, the financial impact becomes more noticeable when applied to every user across the organization. This can influence:
Monthly technology budgets
Annual planning and forecasting
Profit margins
Total cost of doing business
For businesses with a large user base, even a moderate increase per user can add up quickly. This makes now the right time to step back and evaluate whether your current licenses still match your business needs.
The Opportunity Behind a Price Increase
Although no business welcomes higher costs, price changes often spark key questions that help reduce waste and improve efficiency:
Are your users assigned the right licenses?
Are there unused or unnecessary features you are paying for?
Are there duplicate tools providing the same protections as Microsoft 365?
Are you getting full value from the security and productivity features available to you?
Many organizations discover cost-saving opportunities during this review process, such as over-licensed accounts, unused add-ons, or paying for third-party tools that overlap with Microsoft 365.
What You Should Do Before 2026
Preparation does not have to be complicated. A few focused steps can help your business stay ahead.
1. Review Your Licenses
Many users do not need high-tier licenses. Evaluating actual usage often reveals immediate savings.
2. Evaluate Your Billing Method
Monthly billing is often more expensive than annual billing. Changing your billing structure may help reduce the long-term impact.
3. Plan Your Budget Early
Planning now prevents surprise increases during next year’s budget cycle.
4. Confirm You Are Getting Real Value
If costs are rising, your business should be seeing improved security, performance, and productivity in return.
5. Work With a Local Technology Partner
A trusted local partner can help you analyze options, eliminate unnecessary spending, and ensure your team is fully protected.
How Essential Network Technology Helps Local Businesses Prepare
At Essential Network Technology, we support small and mid-sized businesses throughout St. Peters and St. Louis, MO, by helping them stay in control of their Microsoft 365 environment. Our support includes:
Detailed Microsoft 365 license reviews
Identifying unused or unnecessary licenses
Strengthening security and email protection
Reducing cost overlaps and eliminating duplication
Long-term technology planning and budgeting guidance
Our goal is simple. We help your business get exactly what it needs while avoiding overspending.
Preparing Your Business for What Comes Next
Microsoft 365 is a critical part of modern business, but costs are steadily rising. The 2026 increase is a reminder to review your environment early, identify savings, and ensure your business is not overspending.
With clear planning and the right support, you can stay protected, productive, and ready for the future. If you would like help reviewing your Microsoft 365 setup or preparing for the upcoming increase, the Essential Network Technology team is ready to assist.
