What’s changing, why it matters, and what partners should do now

TLDR

Microsoft has announced global Microsoft 365 price increases effective 1 July 2026, alongside extended Copilot Business promotions and enhanced partner incentives running through 30 June 2026.

For MSP partners, this creates a clear window to:

• Lock customers into current pricing by moving to annual terms
• Optimise licensing before higher prices take effect
• Introduce Copilot Business at a discounted rate
• Increase margin through new Copilot bundle incentives

This briefing outlines the key changes, current offers, and recommended partner actions.

Microsoft 365 price changes (effective 1 July 2026)

Microsoft will increase prices globally across several Microsoft 365 plans from 1 July 2026. While Australian pricing has not yet been confirmed, it is expected to broadly align with global increases. Partners should use the USD pricing below as a planning baseline only.

Microsoft states these increases reflect continued investment in the platform, including:

• More than 1,100 new features delivered in the past year
• AI capabilities such as Copilot Chat integrated across Word, Excel, PowerPoint, Outlook and OneNote
• Enhanced security features, including Defender for Office 365 and advanced URL protection

Indicative pricing changes (USD, per user per month)

NOTE there is no change to Business Premium pricing.

What this means for Partners

With higher pricing coming into effect in July, now is the ideal time to proactively review customer environments and reduce unnecessary costs.

Options include:

1. Licence optimisation: Remove unused licences resulting from staff turnover or role changes before the new pricing applies.
2. Plan alignment: Review whether users are on the most appropriate licence tier based on actual usage and role requirements.
3. Billing strategy: Customers on monthly billing should consider moving to annual terms before 1 July 2026 to lock in current pricing for a further 12 months.

Copilot Business: promotions and billing updates

Copilot Business brings Copilot capabilities to customers with 10–300 seats, delivering AI assistance across Microsoft 365 apps at a more SMB‑friendly price point.

Microsoft has extended promotional discounts on:

• Copilot Business add‑ons
• Copilot bundles with Business Basic, Business Standard and Business Premium

These promotions are now available until 30 June 2026.

Partners are encouraged to upgrade eligible renewals to Copilot bundles during this period. Doing so locks in promotional pricing for 12 months, helping customers adopt AI while controlling costs.

Copilot Monthly billing

Month‑to‑month billing is now available for Copilot Business and Copilot bundles with a couple of caveats.

• Monthly billing carries a 20% premium compared to annual/annual terms
• Promotional pricing does not apply to month‑to‑month subscriptions

Note: Nonprofit pricing is not available for Copilot Business or Copilot bundles.

Partner incentives and margin opportunities

There are currently promotional incentives for eligible Cloud Solution Provider (CSP) partners selling Copilot Business and Copilot bundles.

Incentive overview

• Copilot bundles (Business Basic, Standard, Premium + Copilot Business): up to 21.25% total incentive
• Copilot Business sold standalone: up to 25.25% incentive

These incentives combine base and accelerator components and are calculated on billed revenue.

Eligibility requirement

CSP Partners must have achieved a minimum of 25 points in Partner Centre under either the Modern Work or Security designations.

Microsoft Purview – 50% off

Microsoft Purview provides integrated data governance, risk management and information protection capabilities – particularly important for organisations adopting AI.

• Microsoft Purview Suite for Business Premium is currently available at 50% off
• Promotion runs until 30 June 2026

This offer is potentially relevant for customers deploying Copilot, where strong data governance and compliance controls are critical.

Copilot Masterclasses

For end customers with strong Copilot adoption potential, we can nominate them for two x 60‑minute Copilot training workshops delivered by an approved Microsoft training provider.

• Selection is based on customer size and opportunity (customers should have than 5 Copilot seats)
• Manage Protect will manage the nomination and application process on your behalf
• These sessions help ensure customers maximise value and accelerate adoption

Sessions are limited – get in early with your best customers.

Key dates 

• 1 March 2026: Month‑to‑month billing available for Copilot Business

• 30 June 2026: Copilot Business, Copilot bundle, and Purview promotions end
• 1 July 2026: Microsoft 365 price increases take effect

Next steps

To make the most of the current offers and upcoming changes, you should:

1. Review your customers’ licensing and remove unused seats
2. Identify any customers suitable for Copilot Business and bundles
3. Prioritise renewals before 30 June 2026
4. Consider Purview for customers adopting AI
5. Check in with your Partner manager on incentives and nominations

All pricing, promotions, and incentives are subject to Microsoft terms and may change.