If you run your business on Microsoft 365, there’s a change worth knowing about: Microsoft is increasing the price of a number of its 365 plans from 1 July. It’s not the end of the world — but with a little planning you can hold onto today’s pricing for longer, and we’ll explain exactly how below.
What’s changing
The rise affects a number of Microsoft’s subscription licences — the per-user, per-month plans most businesses sit on, such as Business Basic, Business Standard and the Enterprise (E-series) plans. This round takes effect from 1 July.
One bit of good news: Business Premium isn’t part of this round of increases — so if that’s your plan, your per-user price isn’t changing here.
A couple of things to keep in mind:
- Annual plans are protected for their term. If you’re on an annual commitment, your price is locked until that subscription renews — the increase only bites when you come up for renewal.
- Monthly (flexible) plans feel it sooner. The trade-off for being able to add and drop seats month to month is that the price can move at short notice, so these are the most exposed.
The exact figures vary by plan and by how you buy, so it’s always worth checking your specific licences — but the direction of travel is up.
Why is it happening?
In short: Microsoft has been pouring investment into AI and security features across the 365 platform — Copilot being the obvious example — and price reviews like this are how that gets funded. None of that helps your budget, of course, which is exactly why it’s worth being deliberate about when and how you renew.
How to soften the blow
This is where a bit of know-how pays off. The key is Microsoft’s licensing model: when you start a new annual subscription, the price is fixed for the full 12-month term. That gives you a window to lock in today’s rate before the increase lands.
Here’s the approach we use for clients wherever it makes sense:
- Start a new annual subscription at the current price — before 1 July. Even a single seat is enough to open the subscription and lock in the old rate for the next year.
- Roll your other licences over as they expire. As your existing seats reach the end of their term, move them onto that locked-in subscription rather than renewing them at the new, higher price.
- End the result: instead of every seat jumping to the new price, your licences migrate across one by one onto the rate you secured — spreading out the change and keeping more of your team on the old pricing for as long as possible.
It’s a completely legitimate use of how Microsoft structures its subscriptions — you’re simply being smart about timing.
What to do before 1 July
- Find out what you’re on. Check whether your licences are annual or monthly, and when each one renews.
- Lock in early where it helps. If a renewal is coming up soon, getting a new annual subscription in place before the deadline can save you money.
- Right-size while you’re at it. A price review is the perfect moment to clear out unused or over-specced licences — often the easiest saving of all.
How we handle this for our clients
Here’s the part most businesses miss: this isn’t a once-a-year scramble before a deadline — it’s something we manage continuously, year on year, as your Microsoft partner. Price changes like this one are exactly what we’re watching for on your behalf.
As a Microsoft partner, the licensing work happens quietly in the background:
- We track every renewal date for you. We know when each of your subscriptions comes up, so nothing renews at a higher price by accident.
- We act ahead of increases, not after. When a price rise is announced, we lock in the current rate before it lands — starting new annual terms early where it pays to.
- We roll your licences onto the best price as they expire. Year on year, your seats migrate onto the lowest rate we can secure, so you stay on older pricing for as long as the model allows.
- We right-size as we go. Every review is a chance to drop unused seats and match plans to what your team actually needs.
The result is simple: our clients consistently pay less than they would by letting subscriptions renew on autopilot — and they never have to think about it.
If you’re a Snap IT client, you don’t need to lift a finger — we’re already on it ahead of 1 July, as we are every year. If you’re not yet with us and you’d like this kind of proactive licensing management on your side, get in touch and we’ll take a look at your setup.