On 1 July, Microsoft’s 2026 pricing and packaging update for Microsoft 365 took effect. If you manage your own licensing, or if Braintree manages it for you, here is what actually changes and when.
Which plans are affected
The update applies to commercial Enterprise, Business, Frontline and Government-equivalent suites: Office 365 E3, Microsoft 365 E3 and E5, the Business plans, Frontline plans and several standalone products. Consumer and education pricing are not affected.
- Microsoft 365 E3
- Microsoft 365 E5
- Some Frontline configurations rise by as much as 43 percent.
There is no single number that applies to every customer. The real impact depends entirely on which plans you are on today.
The part everyone gets wrong
This is the single most common point of confusion we expect to field this month. It is worth checking your renewal date rather than assuming the increase has already hit you.
What you get for the increase
Microsoft is not raising prices without adding anything back. The new capabilities being folded into the affected plans include Microsoft Defender for Office 365 Plan 1 in more suites, Intune Remote Help and Advanced Analytics, and Security Copilot capacity bundled directly into E5. Microsoft says the full rollout of these additions completes by 1 August 2026, so some customers may see the new price before every new feature has actually landed in their tenant.
The bottom line
Do not panic, and do not assume you are already paying more. Check your renewal date first. If Braintree manages your Microsoft licensing, this review is already part of what we do ahead of every renewal. If you manage it yourself, now is a sensible time to model the new price against your actual renewal date and confirm which of the new features you will actually use.
Talk to our team about what this means for your Dynamics 365 environment. Chat to a Braintree consultant or email us directly at enquiries@braintree.co.za.
Specialists in Business Applications, Modern Workplace and Azure. Let’s grow.
Sources: Microsoft Licensing news (microsoft.com/en-us/licensing/news) and the Microsoft 365 Blog, “Advancing Microsoft 365: New capabilities and pricing update”, 4 December 2025. Figures accurate as of the 1 July 2026 effective date.
