Microsoft price adjustments in 2026: How to optimise your costs

For Microsoft customers, 2026 is characterised by an unusual combination of price movements: on the one hand, a currency-related price reduction was implemented on 1 February. On the other hand, price adjustments have been announced for 1 July, which are primarily attributable to extensive functional enhancements, for example in the following areas:

• Security
• Compliance
• AI/Copilot integration

Given this particular situation, it makes sense for businesses to review their own licensing strategy. As it turns out, businesses that currently purchase their Azure services directly from Microsoft stand to benefit most from optimising their costs.

Background: Price reduction effective 1 February 2026

Since 1 February 2026, businesses in the EU have been benefiting from significantly reduced licence costs for Microsoft Commercial Cloud Services, such as Microsoft 365. Specifically, Microsoft has lowered prices by an average of 7.4% as part of a currency adjustment.

However, the saving applies only to new contracts or renewals concluded on or after this date. Customers who signed a new annual contract shortly before February are currently still paying the old, higher rates. If you worked with an authorised reseller, you may not have received the right advice.

Outlook: Price adjustment on 1 July 2026

Meanwhile, the next price changes are already on the horizon: due to the aforementioned feature enhancements, Microsoft is increasing its prices from 1 July 2026. Depending on the product, price increases of between 5% and 17% are to be expected.

Core products such as the following are particularly affected:

• Microsoft 365 Business Basic and Standard
• Enterprise plans (E3 and E5)
• Frontline options (F1/F3)

Meanwhile, the Business Premium plan remains stable in terms of price as things stand, making it the most attractive option for small and medium-sized businesses at present. Important for your licensing strategy: the price increases will only apply to new purchases or renewals from July onwards. So if you act now, you can secure the low February rates for a whole year.

Short-term measure: Renew now

The unusual combination of price reductions and increases presents you with a unique opportunity to optimise or realign your licensing strategy. In doing so, you can secure the cost benefits described whilst avoiding additional costs.

What you can do now:

• Freeze prices: Secure the current low February rates for next year by renewing your licence before 1 July.
• Stay flexible: With 12-month terms, you remain agile whilst benefiting immediately from the current 7.4% reduction.

This means that the cost-effectiveness of your licence agreements this year depends largely on the timing of the renewal, not just on the licence type.

→ Here, you can switch to the more favourable terms immediately, even if you have existing contracts.

Long-term strategy: Switching to the CSP model

If you want to maintain a comprehensive overview of Microsoft’s product and pricing models at all times, the best approach is to utilise the support of a Cloud Solution Provider (CSP) such as ORAYLIS and take advantage of the CSP model. This way, you not only have an expert point of contact at your side who keeps an eye on costs and potential for optimisation on your behalf, but you can also benefit from special offers.

Given the current price fluctuations, a three-year subscription to core products such as Microsoft 365 E3 and E5, as well as dedicated Teams editions, is particularly attractive.

The benefits of the 3-year contract term at a glance:

• Long-term price protection: You lock in current low prices for the long term and can completely ignore any future price increases.
• Enterprise-level stability without the barriers: You benefit from price stability that was previously reserved for large corporations – and all without any rigid minimum purchase requirements.
• Financial incentives: When upgrading to higher-tier suites (e.g. E3/E5), additional price benefits and discounts may be available.
• Flexible payment options: Despite the long contract term, you can choose between annual, one-off or triennial billing, allowing you to manage your cash flow effectively.

The 3-year SKUs are therefore the most effective tool for safeguarding your IT cost structure against the volatility of 2026.

Procedure for existing contracts: Existing customers can also switch

Microsoft explicitly supports the immediate transfer of active New Commerce Experience (NCE) subscriptions from the direct Microsoft sales channel to a CSP partner.

With ORAYLIS as your CSP partner, the process is as follows:

1. Authorisation: You accept our request for a sales partnership.
2. Transfer management: We initiate an official transfer request in the Microsoft Partner Centre.
3. Cost optimisation: Microsoft will terminate your existing subscription on a pro-rata basis. You will receive a corresponding refund, whilst we immediately set up a new subscription for you at the current lowest rates.
4. Continuity: The switch takes place in the background – your IT infrastructure and user accounts remain completely unaffected.

In summary: By switching, you will benefit from immediate savings and, depending on the term you choose, secure today’s terms and conditions beyond 2026.

Conclusion: The coming weeks will require decisions

The year 2026 will place significant demands on those responsible for Microsoft licence management within organisations. On the one hand, careful planning is essential. On the other hand, swift action is needed now more than ever.

Our recommendation is this: make the most of the current window of opportunity, which runs until July, to take stock of your situation. Whether through a strategic choice between 12- and 36-month contract terms or by switching directly to a CSP partner, the groundwork for a cost-effective IT year will be laid in the coming weeks.