The short version: Microsoft raised prices on most Microsoft 365 business and enterprise plans on 1 July 2026, and each client feels it at their next renewal. Do not send a blanket notice. Check each client's renewal date and plan, remove seats nobody uses, and show what the client's licence already includes and whether it is switched on. That turns a price rise into a review you can bill for.
What did Microsoft change?
Microsoft announced on 4 December 2025 that it would raise commercial prices for Microsoft 365 suites from 1 July 2026. Its own post says new and renewing subscriptions pay the new prices from that date, and existing subscriptions see them at their next renewal after it.
Information Age reported that Business Premium and Office 365 E1 were unchanged in the US, and that Microsoft would not confirm Australian rises. Microsoft says the changes apply globally with local market adjustments. Use your distributor's current AUD price list, not a number from a news article. This post does not quote one for that reason.
Microsoft's reason is added value. It says it is adding AI and security features to the suites. Redmond Channel Partner reports these include Defender for Office 365 Plan 1 email security in the E3 plans and extra Intune device management on E3 and E5.
Why is October the moment to talk about it?
Renewals keep rolling. A client whose term ended in August has already paid. A client who renews in December will see the rise on their next invoice, and may not have been told. A short note a month ahead protects your trust.
What do you check before you write to anyone?
Do this per client, in this order:
- Renewal date. When does the term end? A client that renewed after 1 July is already on the new price.
- Plan. Is the plan one that changed? Do not warn a Business Premium client about a rise that may not apply to them. Check the price list first.
- Seats. Count licensed users against people who signed in over the last 90 days. Leavers and shared mailboxes are the usual waste.
- Overlap. Is the client paying for a separate email security or device tool that the new plan now includes? Check before you suggest dropping anything.
- Contract. Does your agreement let you pass on supplier price changes, and with how much notice? Read it. Do not guess.
What should the client message say?
Keep it short and put the date first. Here is a script you can adapt:
"Microsoft raised the price of most Microsoft 365 plans on 1 July. Your subscription renews on [date], so the new price starts then. Your plan is [plan]. I have checked your users and found [number] licences nobody has used in 90 days. If we remove them, your bill goes from [x] to [y]. I'd also like to check which of the security features you pay for are switched on. It takes about an hour. Can I book it before [date]?"
It gives the date, the plan, a saving you found, and one next step. It does not apologise for Microsoft.
If you're a small business
Ask your IT provider three questions. When does my subscription renew? Which of my licences are unused? Which security features in my plan are switched on? If they cannot answer the third one, ask them to show you.
If you're an MSP
The rise is a reason to run a licence and configuration review for every client, and that review is a service you can price. Do not quietly absorb the increase in your margin, and do not bury it in a bigger invoice either. Show the saving you found first, then pass on what is left, as your contract allows. For how to package a review as a paid service, see the MSP compliance pricing guide.
One caution. Do not tell a client that the new features make them safer. Features that are included are not the same as features that are on. That gap is where your value sits.
Worked example
A 20-person accounting firm renews its Microsoft 365 plan in December. The MSP checks sign-ins and finds three leavers still licensed and two shared mailboxes carrying full licences. Removing them saves more than the rise adds. The MSP then opens the tenant and checks the security features the plan includes. Multi-factor authentication is on for staff but not for one admin account. Email protection policies exist but are in a default state. The MSP fixes the admin account, records the date, and sends the firm a one-page summary with the renewal notice. The director sees a smaller bill and a clear list of what was checked.
Where CYBERWHITE fits
A price rise gets a client asking what they are paying for. CYBERWHITE answers part of that. It scans a Microsoft 365 tenant and shows, control by control, which settings meet the Essential 8 and SMB1001 requirements, which do not, and which need review, with evidence you can export. It shows whether the included security settings are on. It does not read your billing or tell you which plan to buy, and it does not replace a licence review. Controls outside Microsoft 365, such as backups and training, are recorded through attestation.
To see what a client's tenant would show, book a free proof check. We scan one tenant with you. You can also read the Essential 8 compliance guide, see the cyber insurance calculator or see MSP solutions.
Your checklist
- List every client with a renewal date in the next 90 days.
- Note each client's plan and whether it is affected.
- Check your distributor's current AUD price list.
- Count licensed users against 90-day sign-ins.
- Check your contract for pass-through terms and notice.
- Send each client a dated, short note a month before renewal.
- Offer one hour to review which security settings are on.
- Save the review summary with the date.
Sources
- Microsoft 365 Blog: Advancing Microsoft 365, new capabilities and pricing update (4 December 2025)
- Information Age (Australian Computer Society): Microsoft to hike 365 prices for business and government (2025)
- Redmond Channel Partner: Microsoft 365 commercial subscription prices set to hike mid-2026 (9 December 2025)
Keep reading: The evidence problem and Cyber insurance questionnaire: an MSP walkthrough