Microsoft has prepared the largest revision of the licensing policy and tariffs for Microsoft 365, Office 365, and Teams in recent years. The first changes came into effect on November 1, 2025, and the full transition will last until the end of 2026.

The Corporation explains that the update is to fulfill obligations to the European Commission and, at the same time, to make the licensing model more transparent and more unified for the global market.

Return of packages with Teams and new prices: from November 1, 2025

After several years of discussions around separate licensing of Teams in the EU, Microsoft is relaunching Microsoft 365 and Office 365 Enterprise packages with Teams worldwide. In fact, this is a return to the classic model, but with updated prices.

For Companies that, for some reason, do not need Teams, the tariffs for packages without it are also being updated. Separate Microsoft Teams Enterprise/EEA licenses will become globally available as standalone products — this solution is primarily aimed at the market where Teams is used in mixed or complex environments.

The grace period is a thing of the past, but there is an alternative: from April 1, 2026

One of the most noticeable changes is the complete abolition of the grace period for CSP Program Customers. Traditionally, after the subscription term expiration Companies usually had about 30 days to «refresh»: the service was still working, and the Business had time to decide on the extension.

From April 1, 2026, this window will no longer be there. Access to services will be terminated immediately after the paid subscription ends.

To avoid a sudden disconnection, Microsoft is introducing a new mechanism — Extended Service Term (EST). This is a kind of «emergency insurance» that is automatically activated if auto-renewal is disabled and the subscription term has expired.

EST works for up to 30 days and has clearly defined rules:
• Adding new subscriptions or changing the level is not available.
• Only existing licenses can be used.
• The service is disabled immediately after EST is canceled.
• Data is stored for 90 days after disconnection.

The price is the standard monthly rate plus a 3% surcharge, and for annual subscriptions, plus 23%.

Subscriptions purchased after April 1, 2025, and ending on April 1, 2026, will automatically be included in EST if auto-renewal is disabled.

Price increase from July 1, 2026: what will change for Businesses

The Corporation also warns of a cost increase for a number of Microsoft 365 commercial plans in the second half of 2026. The growth will be uneven:
• Microsoft 365 Apps for Business +21.21%
• Microsoft 365 Business Basic +16.67%
• Microsoft 365 Business Standard +12%
• Enterprise Mobility + Security E3 +13.21%
• Enterprise Mobility + Security E5 +9.76%
• Entra ID P1 +16.67%
• Entra ID P2 +11.11%
• Microsoft 365 Apps for Enterprise +16.67%
• Microsoft 365 E3 +8.33%
• Microsoft 365 E5 +5.26%
• Microsoft 365 F1 +33%

Microsoft explains that the price adjustment reflects investments in security, AI functionality, and cloud infrastructure. Also, from July 2026, several new features will be added to licenses:

Copilot for small and medium Businesses: from December 1, 2026

Amidst the changes in licensing, Microsoft is also announcing a new product, Microsoft 365 Copilot Business. This is a separate add-on for business licenses (Basic, Standard, Premium) that provides the same AI capabilities as corporate Copilot, but at a much more affordable price.

The cost is 21 USD per User per month. The limit is up to 300 Users. An annual commitment is required. For a quick start, ready-made combo packages are offered:
• Business Basic + Copilot Business,
• Business Standard + Copilot Business,
• Business Premium + Copilot Business.

Microsoft recommendations for Partners

Partners are advised to take the time to study the updates in detail. In particular, check the technical changes out, review your own sales and support models, and prepare your Business to work without a grace period and with the new EST mechanism.

Important: to avoid unexpected costs, plan your subscription renewals or cancellations in advance!

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