ANM Blog

Microsoft 365 Pricing & Feature Updates Coming July 1, 2026: What It Means for You

December 8, 2025

Microsoft has announced a major update to Microsoft 365 and Office 365 plans, effective July 1, 2026. While this includes a price increase for some SKUs, it also delivers significant added value by bundling advanced security and management features that previously required separate add-ons.

Why This Matters

Organizations are facing increasing cybersecurity threats and operational complexity. Microsoft is responding by embedding premium capabilities into core plans—simplifying licensing and reducing the need for standalone add-ons.

New Features Included

  • Office 365 E1, Business Basic, Business Standard
    • Safe Links (URL Checks) for phishing protection.
  • Office 365 E3
    • Defender for Office 365 Plan 1 (previously $2/user/month add-on)
  • Microsoft 365 E3
    • Intune Remote Help ($3.50/user/month)
    • Intune Advanced Analytics ($5/user/month)
    • Intune Plan 2 ($4/user/month)
  • Microsoft 365 E5
    • Intune Endpoint Privilege Management ($3/user/month)
    • Enterprise Application Management ($2/user/month)
    • Cloud PKI ($2/user/month)
    • Security Copilot Agents (previously SCU-based pricing)

Visual Comparison: Current vs. Future Features

Impact

  • If you currently pay for Defender for Office 365 Plan 1 or Intune add-ons, these costs disappear post-July 2026.
  • Organizations not using these features gain access without extra licensing complexity.
  • Security Copilot becomes embedded in E5—huge value for security teams.

Actionable Steps

  1. Audit your current add-ons: Calculate what you’re paying for Defender and Intune extras.
  2. Model future costs: Compare new base prices vs. eliminated add-ons.
  3. Plan adoption: Enable these advanced features now to maximize ROI.

Bottom Line

This isn’t just a price increase—it’s a value increase. By consolidating advanced security and management tools into core SKUs, Microsoft is simplifying licensing and delivering more capability for less complexity.