Date:
22 Jun 2026
Author:
PREO AG
Microsoft Licencing
Major price adjustments for commercial suites
IT managers and software asset managers face their next financial challenge: Microsoft has announced global price increases for numerous Microsoft 365 and Office 365 suites, effective 1 July 2026. This is already the third price adjustment in just four years; after 2022 and 2023, Microsoft is once again tightening the cost screw. It is a pattern that clearly shows just how heavily companies are caught in dependence on a single provider: anyone who relies entirely on Microsoft cloud subscriptions has no choice but to pay. The price of Microsoft 365 E3, for example, is rising by eight per cent and that of Office 365 E3 by thirteen per cent. In the area of business plans for SMEs, as well as for frontline licences, individual increases of up to 33 per cent are planned, for instance for Microsoft 365 F1.
In this blog post, we have clearly compiled the respective licence plans and packages together with their price changes. We also explain why most companies now prefer hybrid cloud models and what role the use of pre-owned software licences can play in this.
New Microsoft prices for Office 365 and M365 plans from July 2026
What is striking here is that the percentage price jumps for the individual suites without MS Teams are even more drastic than those with Teams. The Microsoft 365 F1 plan without Teams, for example, rises by 43 per cent. From 1 July 2026, according to Microsoft, the following prices and percentage increases will apply to commercial customers:
| Licence Plan | With Teams | Without Teams | ||||
|---|---|---|---|---|---|---|
| Old | New | +/- | Old | New | +/- | |
| Enterprise Suites | ||||||
| Office 365 E3 | 23,00 $ | 26,00 $ | +13 % | 14,45 $ | 17,45 $ | +20,8 % |
| Office 365 E5 | 38,00 $ | 41,00 $ | +8 % | 29,45 $ | 32,45 $ | +10 % |
| Microsoft 365 E3 | 36,00 $ | 39,00 $ | +8 % | 27,45 $ | 30,45 $ | +11 % |
| Microsoft 365 E5 | 57,00 $ | 60,00 $ | +5 % | 48,45 $ | 51,45 $ | +6 % |
| Office 365 E1 | 10,00 $ | 10,00 $ | 0 % | 6,79 $ | 6,79 $ | 0 % |
| Frontline Suites | ||||||
| Microsoft 365 F1 | 2,25 $ | 3,00 $ | +33 % | 1,75 $ | 2,50 $ | +43 % |
| Microsoft 365 F3 | 8,00 $ | 10,00 $ | +25 % | 6,93 $ | 8,93 $ | +29 % |
| Business Suites | ||||||
| Microsoft 365 Business Basic | 6,00 $ | 7,00 $ | +16 % | 4,40 $ | 5,40 $ | +23 % |
| Microsoft 365 Business Standard | 12,50 $ | 14,00 $ | +12 % | 9,29 $ | 10,79 $ | +16 % |
| Microsoft 365 Business Premium | 22,00 $ | 22,00 $ | 0 % | 18,79 $ | 18,79 $ | 0 % |
Source: microsoft.com/licensing/news/2026-M365-Packaging-Pricing-Updates
For stand-alone components too, such as Windows Enterprise licences or Microsoft 365 Apps, costs are rising by between 9 and 31 per cent.
In adjusted form, the price increases also affect non-profit organisations as well as public administrations and authorities. For government licences whose price increase exceeds 10 per cent, however, the rise is phased in over several years in line with federal regulations.
The risks of cloud dependence
Microsoft's latest turn of the price spiral lays bare a problem area in many IT strategies that should not be underestimated: the risk of vendor lock-in. To reduce the associated dependencies, a strategic rethink has been under way for several years now, which can be summed up as follows: “cloud only” is becoming “cloud smart”. Alongside the financial burden of continuously rising licence costs, since the start of Donald Trump's second term the issue of digital sovereignty has come into ever sharper focus. This applies to businesses as well as to authorities and public administrations. Many European states are tightening their existing regulations or, as in the German state of Schleswig-Holstein, are gradually migrating their IT systems to open-source solutions. The aim is clear: minimising risk and strengthening digital resilience. With the latest AI-driven developments, the search for cloud alternatives that are smart in both financial and security terms is likely to gain further momentum.
Act now: put your licence portfolio to the test
Three price increases in four years are no coincidence – they are strategy. For companies, this is the concrete prompt to shape their own software strategy actively rather than merely react to it. Three questions that IT managers should be asking now if they want to avoid subscription traps:
Which licences are actually being used?
Many companies pay for features and plans that hardly anyone uses day to day. A structured licence audit creates transparency and shows where costs can be saved immediately, with no loss of convenience.
What can be recovered from licences that are no longer needed?
Surplus software licences do not simply have to lapse. They can be resold in a legally compliant way, freeing up liquid funds that can flow directly into new IT investments.
Is a pure cloud strategy still fit for the times?
Anyone who relies exclusively on Microsoft cloud subscriptions hands over control of pricing for good. Hybrid models that deliberately combine cloud services with on-premises licences are not only more cost-effective; they also actively reduce vendor lock-in and strengthen the company's digital sovereignty.
Smart alternative: on-premises licences as a strategic anchor
Even though cloud computing has now become the standard almost everywhere, on-premises solutions remain indispensable for many companies. There are several good reasons for this:
- Full cost control: a one-off investment instead of ongoing rental payments.
- Data sovereignty: sensitive company data remains within your own infrastructure.
- Compliance: meeting EU-wide and national data protection requirements without dependence on US cloud providers.
It therefore comes as little surprise that hybrid cloud solutions, which combine the best of both worlds, are increasingly becoming the preferred solution. The cloud is no longer regarded as a strategic goal in itself, but as a tool within a needs-based IT architecture. Collaboration, identity management or selected security services, for instance, can be handled efficiently online, while existing workloads that for functional reasons do not require a constant cloud connection, or the processing of highly sensitive and security-critical company or customer data, continue to run on premises in your own data centre.
The immense financial advantages this can deliver are impressively illustrated by two PREO reference examples: the LMT Group, an internationally operating specialist machinery manufacturer, and Asklepios Kliniken, a private operator of more than 150 healthcare facilities. You can find the complete customer cases, including the savings achieved, here for free download.
Using pre-owned Microsoft licences as a clever alternative
To create financial headroom, for example for new IT projects, the use of pre-owned software offers enormous savings potential for SMEs, large corporations and public administrations. Compared with buying new or with costly subscriptions, price advantages of up to 70 per cent can be achieved. Pre-owned Microsoft licences – for example for Office, Windows operating systems, Windows Server, SQL Server and Exchange Server – are also identical in quality to new products, since software does not wear out.
Further reasons why PREO is the right partner among pre-owned software providers for your company too:
Legal certainty and transparency: PREO goes beyond the statutory documentation requirements and discloses the entire chain of rights without gaps.
Audit security: All PREO licences are checked for licensing compliance, so that after a transfer you can face any vendor audit with complete composure.
Multiply secured processes: With more than 20 years of experience as a pioneer in the Europe-wide trade in pre-owned software licences, PREO's Safe3 system delivers the highest compliance standards before, during and after the licence transfer, and with “Easy Compliance” offers its own licence portal and an integrated blockchain solution.
Extensive expertise: More than 5,000 customers from the widest range of industries and sectors already benefit from PREO's pre-owned software advantages. Why not take a look at our reference projects.
PREO tip: The third price increase in a row is the starting gun: now is the right moment to analyse your own licence portfolio systematically. Which licences are actually being used? Which can be disposed of or replaced with more cost-effective on-premises alternatives? And which dormant licences can be resold at a profit instead of simply being left to lapse? PREO's licensing experts support you every step of the way – from inventory analysis and legally compliant licence sales through to the strategic realignment of your IT. In this way, you regain not only costs but also the independence that a pure cloud strategy stripped from you long ago.
PREO's licensing experts will be glad to advise you in person and will calculate your potential savings free of charge, based on your current portfolio.
