TL;DR: From 1st July 2026, Microsoft is raising prices on most M365 plans — Business Basic goes up 17% and Business Standard 12% — but Business Premium stays at the same price. On top of that, all Business mailboxes are doubling from 50GB to 100GB, and Microsoft is running a discounted Business Premium + Copilot bundle until 30th June. If you're on Standard and care about security, the gap to Premium has never been smaller. Now's the time to review your licences.
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If you’re a small or medium-sized business running Microsoft 365, you’ll want to pay close attention to what’s happening on 1st July 2026. Microsoft has confirmed a round of commercial price increases across most of its 365 licence plans – but one notable product has been left untouched: Microsoft 365 Business Premium.
At a time when costs are rising across the board, Business Premium is shaping up to be one of the strongest value propositions in the entire Microsoft portfolio. Here’s why, and what it means for your business.
The July 2026 Price Increases: What’s Changing?
Microsoft’s official announcement on 4th December 2025 confirmed that from 1st July 2026, most commercial Microsoft 365 plans will see price rises. The increases reflect the addition of new AI capabilities (including baseline Copilot features), enhanced security tools, and expanded endpoint management across the platform.
Here’s a summary of the key changes:
Microsoft 365 Product | Current Price | Price as of July 1, 2026 | Increase |
|---|---|---|---|
| Business Basic | $6 | $7 | 17% |
| Business Standard | $12.50 | $14 | 12% |
| Business Premium | $22 | $22 | 0% - No Change |
| Office 365 E3 | $23 | $26 | 13% |
| Microsoft 365 E3 | $36 | $39 | 8% |
| Microsoft 365 E5 | $57 | $60 | 5% |
Prices shown are USD list prices per user/month. UK pricing follows the same percentage changes, with local currency adjustments.
As you can see, Business Basic and Business Standard are both going up, with Basic seeing the steepest rise at 17%. Meanwhile, Business Premium stays exactly where it is. For SMEs who need security alongside productivity, the gap between Standard and Premium has never been narrower.
Bigger Mailboxes: 50GB Becomes 100GB
As part of the July 2026 update, Microsoft is also increasing primary mailbox storage for Business plans from 50GB to 100GB per user. This is a significant upgrade, particularly for businesses that have been bumping up against the 50GB limit or paying for Exchange Online Plan 2 add-ons just to get more space.
For Business Premium users, this doubles the primary mailbox capacity on top of the existing unlimited archive storage that’s already included in the licence.
It’s a meaningful improvement that removes a common pain point without any additional cost.
What Makes Business Premium Worth It?
Business Premium has always been the sweet spot for SMEs that take security seriously. It includes everything in Business Standard, plus a comprehensive layer of security and device management tools that would otherwise require expensive add-ons or enterprise-level licences:
- Microsoft Defender for Business – advanced endpoint protection against ransomware, malware, and sophisticated attacks
- Microsoft Defender for Office 365 Plan 1 – enhanced email security with safe links, safe attachments, and anti-phishing protection
- Microsoft Intune – mobile device management and application protection, including remote wipe for lost or stolen devices
- Azure Information Protection – classify and protect sensitive documents and emails
- Conditional Access – control who can access your data, from where, and on which devices
- 100GB mailbox with unlimited archive – generous storage that grows with your business (from July 2026)
With Business Standard rising to $14 per user and Business Premium holding at $22, the additional $8 per user per month buys you an enterprise-grade security stack. For any business handling sensitive data, working in regulated sectors, or simply wanting to reduce their cyber risk exposure, it’s a compelling investment.
Business Premium + Copilot: A Discounted Fast Track to AI
Microsoft is also actively promoting a bundled Business Premium with Microsoft 365 Copilot licence. For businesses that want to combine best-in-class security with AI-powered productivity, this bundle offers a discounted entry point.
Copilot brings AI assistance directly into the Microsoft 365 apps your team already uses:
- Word and PowerPoint: generate drafts, summarise documents, and create presentations with AI assistance
- Excel: get help with formulas, create charts, and analyse data using natural language
- Outlook: draft emails, summarise long threads, and manage your inbox more efficiently
- Teams: transcribe meetings and convert them into actionable summaries and next steps
The promotional pricing on the Business Premium + Copilot bundle runs until 30th June 2026, offering a 25% discount for the first year. If you’ve been considering Copilot, combining it with Business Premium is the most cost-effective route.
What Does This Mean for Your Business?
If you’re currently on Business Basic or Business Standard, your costs are about to go up after your July renewal. Now is the ideal time to review your licensing and ask whether an upgrade to Business Premium makes sense. In many cases, the security features alone justify the move – and with the price gap closing, the decision becomes even easier.
Here’s our advice:
- Audit your current licences. Identify any unused seats or users who could move to a more appropriate plan.
- Consider the security gap. Business Standard doesn’t include endpoint protection, device management, or advanced threat protection. If you’re buying these separately, Premium could save you money overall.
- Think about compliance. If your business handles personal data, works with regulated clients, or needs to demonstrate strong security posture, Business Premium gives you the tools to do it.
- Lock in before July. If you’re renewing before 1st July 2026, you may be able to secure current pricing for another term.
- Explore the Copilot bundle. If AI-driven productivity appeals, the promotional pricing makes this an affordable time to adopt.
Need Help Reviewing Your Microsoft 365 Licensing?
Pro-Networks can help you make the most of the July 2026 changes. Whether you need a licence audit, want to explore Business Premium, or are interested in the Copilot bundle, our team is here to guide you through the options and find the right fit for your business. Get in touch today to arrange a no-obligation review of your Microsoft 365 setup.