Microsoft 365 Just Got More Expensive. Here’s What Changed and What to Do About It.
- From 1 July, Microsoft increased pricing across most commercial Microsoft 365 plans, from 5% up to 33% depending on the tier.
- Business Premium is the one plan that didn’t move in price at all.
- Standard just went up 12% for a plan that’s fairly bare-bones, while Premium held steady and includes a lot more.
- If you’re on Standard, the sensible move is to work out what the small step up to Premium actually costs you now.
- A few practical steps below can offset some or all of the increase regardless of which plan you’re on.
Microsoft 365 pricing went up on 1 July, and by more than most people expected. Some plans rose by as little as 5%. Others jumped over 30%. How much you’re affected depends on which plan you’re sitting on.
What has changed?
| Plan | Increase |
| Microsoft 365 E5 | +5% |
| Microsoft 365 E3 | +8% |
| Office 365 E3 | +13% |
| Business Standard | +12% |
| Business Basic | +16% |
| Frontline plans (F1/F3) | +25% to +33% |
| Business Premium | No change |
The Standard vs Premium question
Business Standard is often the default choice for small businesses. Following this increase, it’s much closer in price to Business Premium than it was before.
Standard gives you the core Microsoft 365 apps and services. Premium adds device management, Defender for Business and identity protection, all of which address security risks that many businesses are already paying to manage elsewhere.
Before the price change, there was a more noticeable jump between the two plans. Now, the difference is small enough that it’s worth comparing them properly rather than assuming Standard is still the better-value option.
A lot of businesses are about to pay close to Premium pricing while staying on a Standard licence.
Why is Microsoft increasing prices?
Microsoft’s own line is that this isn’t a price rise so much as a value increase. A few extra features are landing across the plans by Microsoft’s position is that customers are getting additional value rather than simply paying more. New features being added across various plans include:
- Additional mailbox storage on Business Basic and Business Standard
- Time-of-click URL protection in Outlook
- Deeper Copilot Chat integration across Word, Excel, PowerPoint and Outlook
- Microsoft Defender for Office 365 included with Business Premium and Microsoft 365 E3
Whether that’s good value depends on how much of it you’ll actually use.
If you’re already paying separately for security tools that are now included, the increase may be easier to justify. If not, it’s simply a bigger monthly bill..
What you can do about it
- Check your renewal date. If your agreement renews after 1 July, ask your provider whether early renewal is an option. In many cases, this allows you to lock in your current pricing for another term.
- Compare Standard and Premium properly. With the price gap now much smaller, don’t assume Standard is automatically the cheaper option. Look at both the licence cost and any security products you’re paying for separately.
- Audit your licences. Unused accounts, dormant users and shared mailboxes sitting on full licences are more common than most businesses realise. Removing them can often offset a significant part of the increase.
Frequently asked questions
When did the Microsoft 365 price increase take effect?
The new pricing took effect on 1 July. Most commercial Microsoft 365 plans increased, while Business Premium remained unchanged.
Does the price increase affect Business Premium?
No, Business Premium remains the same .
Should I upgrade from Standard to Premium?
It depends on what your business needs. However, the smaller gap in price means it’s worth doing a proper comparison. For many businesses, the additional security and management features in Premium may justify the extra cost.
Can I avoid the increase by renewing early?
In some cases, yes. Many providers allow customers to renew before their term ends and secure existing pricing for the next contract period.
What’s different about Business Premium?
Business Premium includes everything in Business Standard, plus device management, Defender for Business and identity protection features designed to improve security and give you greater control over company devices and accounts.
- Working out whether Standard or Premium is the better fit isn’t always obvious from the price list alone; it depends on what your business actually uses day to day. If you’d like us to run the numbers for your setup, get in touch on 0818 987 900 or email hello@intuity.ie.