Microsoft Licensing Update: How to Save on Microsoft 365 in 2026
Jan 12, 2026
Nicole Walker
Microsoft Copilot
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Costs & Budget
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Microsoft 365
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Sourcepass MCOE
3 min read
Microsoft is introducing major changes to Microsoft 365 pricing and licensing in 2026.
Organizations planning renewals, Copilot adoption, or compliance upgrades have a limited window to secure significant discounts before prices rise on July 1, 2026. By acting now, you can lock in savings, avoid unexpected costs, and position your business for the next wave of AI-powered productivity.
How to Maximize Microsoft 365 Discounts Before July 2026
In this episode of "What’s New with Microsoft," Wade Walker (VP, Microsoft Alliance, Sourcepass MCOE) breaks down the latest Microsoft 365 discounts, including what’s expiring soon, how to combine offers, and what to expect from the July 2026 price changes. The goal is to help you maximize savings, avoid renewal pitfalls, and get the most out of your Microsoft investment.
Key Moments
- 00:00 — Introduction: Why Microsoft 365 discounts matter in 2026
- 00:52 — Overview of current Microsoft 365 and Copilot promotions
- 01:20 — SMB discounts: Purview Suite, Copilot Business, Business Premium bundles
- 03:45 — Windows 365 Cloud PC: 20% off for new customers
- 03:59 — Enterprise offers: E3/E5 three-year term, Purview, Defender, Copilot
- 06:52 — How to get help, connect with experts, and next steps
What are the Biggest Microsoft 365 Discounts Available Right Now?
1. Microsoft 365 Purview Suite: 50% Off with Copilot (Expires Feb 1, 2026)
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Who qualifies? Any organization purchasing Microsoft 365 Copilot (Business or Enterprise) can add Purview Suite at half price.
- Why it matters: Purview brings enterprise-grade compliance, data protection, and governance to Business Premium and Enterprise plans at a fraction of the usual cost.
- Expiration: February 1, 2026 (for most offers; some bundles run through March 31, 2026).
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2. Microsoft 365 Copilot Business: 15% Off (Expires March 31, 2026)
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Who qualifies? SMBs (up to 300 seats) on Business Basic, Standard, or Premium.
- Promo price: $18/user/month (down from $21).
- Why it matters: Same features as Enterprise Copilot, but at a lower entry point for smaller organizations.
- Expiration: March 31, 2026.
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3. Microsoft 365 Business Premium + Copilot Business Bundle: 25% Off
4. Microsoft 365 Business Standard + Copilot Business Bundle: 35% Off
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Who qualifies? New customers bundling Business Standard with Copilot Business.
- Promo price: $22/user/month (down from $33.50).
- Expiration: March 31, 2026.
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5. Windows 365 Cloud PC: 20% Off for New Customers (Expires April 30, 2026)
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Who qualifies? New Windows 365 clients (all editions, 10–300 seats).
- Why it matters: Cloud PCs enable secure, flexible remote work and device management.
- Expiration: April 30, 2026.
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6. Microsoft 365 E3/E5 Three-Year Term: 10% Off for New Customers
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Who qualifies? New-to-offer customers purchasing 3-year terms (minimum 100 seats).
- Why it matters: Locks in current pricing for three years, protecting against the July 2026 price hike.
- Expiration: December 31, 2025 (for most offers).
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What is Changing with Microsoft 365 Pricing in July 2026?
- Price increases: Most plans will see a 5–33% increase at renewal after July 1, 2026.
- Business Basic: $6 → $7/month (+17%)
- Business Standard: $12.50 → $14/month (+12%)
- E3: $36 → $39/month (+8%)
- E5: $57 → $60/month (+5%)
- Frontline plans: Up to 33% increase
Why are Microsoft 365 Prices Increasing in 2026?
Microsoft is raising prices across nearly every Business, Enterprise, and Frontline plan starting July 1, 2026. The company cites over 1,100 new features added in the past year, including advanced AI (Copilot), security, and management tools now bundled into core suites. For most organizations, this means higher renewal costs, but also more value and complexity to navigate.
Frequently Asked Questions: Microsoft 365 Pricing, Discounts, and Renewals
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What is the deadline to secure Microsoft 365 discounts before the price increase?
Most promotional pricing expires between February 1 and March 31, 2026. Renewals after July 1, 2026, will reflect higher list prices.
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Who qualifies for Microsoft 365 Copilot Business?
Organizations with up to 300 seats on Business Basic, Standard, or Premium.
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How do I get the 50% Purview Suite discount?
Purchase any Copilot license (Business or Enterprise) and add Purview Suite before February 1, 2026.
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What’s the best renewal strategy for 2026?
Renew before July 1, 2026, to lock in current pricing and take advantage of available promotions. Consider a three-year term for price protection.
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What happens to Enterprise Agreement (EA) volume discounts?
Volume-based discount tiers for Online Services ended November 1, 2025. Pricing will now align with Microsoft’s public list price at renewal.
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What’s included in Microsoft 365 Copilot Business compared to Enterprise?
Copilot Business provides the same AI-powered features as Enterprise, but is designed for organizations with up to 300 seats and offers SMB-focused pricing and bundles.
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Which Microsoft 365 bundles offer the best value for compliance, security, and AI?
Bundling Business Premium or Standard with Copilot Business, or adding Purview Suite, provides significant savings and enhanced compliance and security features.
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How do I transition from legacy plans or on-premises solutions to new Microsoft 365 bundles?
Review your current licensing, compare available bundles, and consult with a Microsoft partner or licensing expert to ensure a smooth migration and maximize savings.
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What happens if I wait until after July 1, 2026, to renew?
Renewals after July 1, 2026, will be subject to the new, higher list prices and may not qualify for current promotional discounts.
Make the Most of Microsoft 365 Renewal Opportunities
As Microsoft prepares to update pricing and licensing in 2026, organizations have a limited window to secure discounts and optimize their renewal approach. By staying informed about the latest offers, planning ahead for renewal dates, and evaluating new bundles, you can manage costs, strengthen compliance, and ensure your environment is ready for future innovation.
If you need help navigating renewal options, want to compare bundles, or have questions about the latest pricing changes, connect with our Microsoft licensing experts. We provide clear guidance to help you make confident decisions and maximize your investment.
For ongoing insights and practical strategies, subscribe to the Demystifying Microsoft podcast. Stay current on updates, best practices, and licensing trends that impact your organization.
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