Microsoft licensing

Microsoft 365 Price Increase 2026: Renewal Checklist

Before signing the next Microsoft 365 renewal, enterprise IT, procurement and finance teams should review license usage, compare CSP pricing and confirm whether costs can be reduced without tenant migration or downtime.

Article author
Anna Becker
Article reading time
7 min read
Article publication date
June 23, 2026

Microsoft 365 price increase 2026: what is changing?

Microsoft 365 commercial pricing is increasing globally from July 2026. Public reporting says the increase affects several Business, Frontline and Enterprise plans, including Microsoft 365 E3, Microsoft 365 E5 and Microsoft 365 F3. For enterprise companies, the main risk is renewing an inefficient license structure at a higher price.

Microsoft 365 E3

Axeti: €338.40/user/year. Indicative difference: ~€72.96 per user/year, or ~€72,960 per year at 1,000 E3 users.

Microsoft 365 E5

Axeti annual pricing: €535.22 per user/year. For 1,000 users, that equals €535,220 per year before taxes and local commercial adjustments.

Microsoft 365 F3

Axeti annual pricing: €66.91 per user/year. F3 can be important for frontline or lightweight users who do not need the same license as knowledge workers.

Why enterprise companies should not treat renewal as routine

Microsoft 365 is business-critical infrastructure. It supports email, Teams, identity, security, compliance, endpoint management and daily productivity across the organization. That is why renewal should be treated as a commercial and IT governance checkpoint, not simple administration.

  • Inactive users still consume paid Microsoft 365 licenses
  • E3 or E5 is assigned to users who do not need those features
  • Frontline users are not separated from knowledge workers
  • CSP pricing options are not compared before renewal

What IT, procurement and finance should align on

IT directors need to protect continuity, security and the existing tenant. Procurement needs to challenge commercial terms and compare pricing options. Finance needs to understand the annual budget impact after the 2026 price increase. The best renewal decisions happen when all three teams work from the same license data.

What to review before Microsoft 365 renewal

Before renewal, enterprise companies should run a structured Microsoft 365 licensing review. The output should be a clear recommendation: what to keep, what to adjust, what to remove and where the company can reduce unnecessary spend without increasing operational risk.

  • Current Microsoft 365 license inventory and assigned users
  • E3, E5 and F3 usage by user group and role
  • Office 365 E3 or Exchange-only needs for lighter users
  • Expected annual cost after the 2026 price increase

Can costs be reduced without tenant migration?

Yes. In many cases, Microsoft 365 licensing can be optimized without changing the existing tenant. With the right CSP setup, enterprise companies can keep their current users, data, services and security configuration while improving the commercial model before renewal.

faq

Microsoft 365 renewal cost questions

How much can Axeti reduce E3 costs?

Expand options

Axeti annual pricing for Microsoft 365 E3 is EUR 338.40 per user/year. Compared with reported post-increase Microsoft list pricing, the indicative difference is about EUR 72.96 per user/year. At 1,000 E3 users, that equals about EUR 72,960 per year.

How much can Axeti reduce E5 costs?

Expand options

Axeti annual pricing for Microsoft 365 E5 is EUR 535.22 per user/year. Compared with reported post-increase Microsoft list pricing, the indicative difference is about EUR 97.64 per user/year. At 1,000 E5 users, that equals about EUR 97,640 per year.

Can costs be optimized after the price increase?

Expand options

Yes. Review assigned versus active users, right-size E3 and E5 seats, move suitable users to F3 or Exchange-only plans, and compare the renewal quote with CSP pricing.

Do we need to change our tenant?

Expand options

No. Your existing Microsoft 365 tenant, users, data, Teams, SharePoint, OneDrive, Entra ID and security settings can remain unchanged.

What should we check before renewal?

Expand options

Check license inventory, active usage, E3/E5 allocation, frontline users, Exchange-only needs, renewal terms, CSP pricing and expected annual cost after the increase.

Can Axeti review our license mix?

Expand options

Yes. Axeti reviews your current Microsoft 365 licenses and renewal quote, then identifies where spend can be reduced without disrupting users.

Who is this relevant for?

Expand options

Enterprise companies with hundreds or thousands of Microsoft 365 users, especially organizations with significant E3, E5, F3 or Exchange Online spend.

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