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Microsoft 365 Pricing & Feature Updates Coming July 1, 2026: What It Means for You

December 8, 2025
Microsoft has announced a major update to Microsoft 365 and Office 365 plans, effective July 1, 2026. While this includes a price increase for some SKUs, it also delivers significant added value by bundling advanced security and management features that previously required separate add-ons.
 

Why This Matters

Organizations are facing increasing cybersecurity threats and operational complexity. Microsoft is responding by embedding premium capabilities into core plans—simplifying licensing and reducing the need for standalone add-ons.
dollar signs
 

New Features Included

    • Safe Links (URL Checks) for phishing protection.
    • Defender for Office 365 Plan 1 (previously $2/user/month add-on).
    • Intune Remote Help ($3.50/user/month)
    • Intune Advanced Analytics ($5/user/month)
    • Intune Plan 2 ($4/user/month)
    • Intune Endpoint Privilege Management ($3/user/month)
    • Enterprise Application Management ($2/user/month)
    • Cloud PKI ($2/user/month)
    • Security Copilot Agents (previously SCU-based pricing)

Visual Comparison: Current vs. Future Features

Microsoft Pricing Updates

Impact

  • If you currently pay for Defender for Office 365 Plan 1 or Intune add-ons, these costs disappear post-July 2026.
  • Organizations not using these features gain access without extra licensing complexity.
  • Security Copilot becomes embedded in E5—huge value for security teams.

Actionable Steps

  1. Audit your current add-ons: Calculate what you’re paying for Defender and Intune extras.
  2. Model future costs: Compare new base prices vs. eliminated add-ons.
  3. Plan adoption: Enable these advanced features now to maximize ROI.

Bottom Line

This isn’t just a price increase—it’s a value increase. By consolidating advanced security and management tools into core SKUs, Microsoft is simplifying licensing and delivering more capability for less complexity.
 
 
 
 
Chris Hinch

Chris Hinch

Microsoft Practice Director

Chris has been working in the IT industry for close to 25 years and is an expert Microsoft strategist and a technical leader. Chris is passionate about helping customers achieve their business goals and solve their challenges with innovative solutions. He enjoys working with talented teams and collaborating with partners across the globe.