Microsoft will raise the prices of its Office productivity software subscriptions for commercial and government clients starting July 1, 2026. This marks a significant adjustment, as the company has raised prices for commercial subscriptions infrequently since the launch of Office 365 in 2011. The upcoming changes will see the Microsoft 365 Business Basic subscription increase from $6 to $7 per user per month, while the Microsoft 365 Business Standard will rise from $12.50 to $14. According to Nicole Herskowitz, corporate vice president for Microsoft 365 and Copilot, the company has invested heavily in its platform, introducing over 1,100 new features across various product lines in the past year. The price hikes will also affect enterprise subscriptions, with Microsoft 365 E3 increasing by 13% from $23 to $26. As a result, organizations should prepare for higher costs while benefiting from the enhanced features that Microsoft claims to provide.
Why do we care?
Microsoft is raising prices because they can. When you own the productivity stack, the identity layer, and half the security tooling, you don’t need permission to bump your rates — you just announce it ahead of time.
And that’s exactly why MSPs need to care. Your customers will feel this, and they’ll bring the frustration to you, not to Microsoft. So don’t wait. Start the conversations now. Explain what’s coming, show the utilization gaps, and help them understand where they’re getting value — or not getting value — from Microsoft 365.
This is also your opportunity to shift the narrative. If customers are paying more, they should be getting more out of the platform. And that means enablement, tightening up security, better governance, and actually turning on the features they’ve ignored for years.
Don’t absorb the increase, don’t apologize for it, and don’t let it hit your margins. Treat it like what it is: Microsoft formalizing its dominance. Your job is helping customers navigate that reality and get the most from the platform they’re already committed to.