Microsoft 365 boosts prices in 2026 … to pay for more AI and security

Microsoft 365 customers have gotten an early Christmas present from Santa Satya: price rises. All that AI goodness isn't going to pay for itself.

The increases, which will affect the company's commercial, frontline worker, and government customers, take effect from July 1, 2026, and range from a slight bump to an eye-watering hike. According to Microsoft, the rises (or "updates" in Micro-speak) are driven by expanded security, management, and AI capabilities.

Microsoft said, "Organizations face an increasingly complex threat landscape, rising IT demands, and the urgent need for AI-powered transformation.

"To help our customers meet these challenges head-on, we’re enhancing our Microsoft 365 offerings with additional security and management capabilities empowered by AI."

And also increasing the prices.

Not all prices are rising. Business Premium will, for example, remain $22. However, Business Standard will go from $12.50 to $14, and Business Basic will increase from $6 ...