What’s Changing in Microsoft 365 in 2026? Updates Explained
Microsoft is rolling out several Microsoft 365 changes between now and July that will impact pricing, Copilot licensing, and mailbox storage.
Businesses can now bundle Copilot with most Microsoft 365 plans and save for a limited time, mailbox storage is increasing by 50GB for many users, and several Microsoft 365 subscriptions will see price increases starting July 1.
Understanding what is changing and when can help your business avoid unnecessary costs and make smarter decisions about licensing and renewals.
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Copilot Can Now Be Bundled With Most Microsoft 365 Plans. One of the biggest updates is how Microsoft is packaging Copilot. Copilot can now be bundled with:
- Microsoft 365 Business Basic, Standard, and Premium
- Office 365 E1 and E3
- Microsoft 365 E3 and E5
Microsoft is currently offering up to 25% savings for one year when Copilot is bundled with these plans. However, that promotional pricing window is only available now through March 31. Along with the bundling option, Microsoft continues to improve Copilot chat functionality. Updates include enhancements to security, management controls, and analytics, giving organizations more visibility into how Copilot is being used and how it supports productivity. For businesses considering Copilot, this limited-time bundling window may be the most cost-effective way to add AI tools to your Microsoft environment.
Mailbox Storage Is Increasing by 50GB. Another change coming soon is additional mailbox storage for many Microsoft 365 users. Microsoft is adding an extra 50GB of mailbox storage for users on:
- Microsoft 365 Business Basic
- Microsoft 365 Business Standard
- Microsoft 365 Business Premium
This increase will roll out between now and June 30 and applies whether or not Copilot is bundled with your subscription. For organizations dealing with growing email storage needs, this update may reduce the need for additional archiving or storage workarounds. It is a straightforward improvement that many businesses will benefit from automatically. Microsoft 365 E3 and E5 plans are also seeing ongoing improvements, particularly around Intune functionality and analytics, giving IT teams better insight and management capabilities.
Microsoft 365 Price Increases Begin July 1
Not all of the upcoming changes are cost-saving. Starting July 1, several Microsoft 365 subscription packages will see price increases. Most of these increases are relatively small, typically in the range of $1 to $2 per user per month. While that may not sound significant, the impact adds up quickly across an entire organization. For companies with dozens or hundreds of users, even small per-user increases can noticeably affect the annual IT budget. This makes the next few months an important time to review licensing, subscription structure, and agreement terms before pricing adjustments take effect.
How to Control Microsoft 365 Costs Going Forward
If your organization’s user count is stable or growing, one of the most effective ways to control Microsoft 365 costs is to review your agreement structure. In many cases, annual agreements provide better cost stability than month-to-month licensing, especially when pricing increases are expected. Reviewing your licensing now can help ensure you are not overpaying, underutilizing features, or missing opportunities to bundle services more efficiently. Microsoft updates happen frequently, and small changes in licensing options or pricing can have a long-term impact on your technology budget. Taking time to evaluate your setup now can prevent surprises later in the year.
What Businesses Should Do Next
The biggest Microsoft 365 updates between now and July center around three areas: Copilot bundling opportunities, mailbox storage increases, and upcoming price adjustments. None of these changes require immediate action for every organization, but they do create an opportunity to review your current setup and make sure it still makes sense for your business. If you are unsure how these changes affect your Microsoft 365 environment, a quick licensing review can help you:
Identify potential cost savings
Plan for upcoming price increases
Evaluate whether Copilot makes sense for your team
Ensure your licensing matches how your business actually operates
If you would like a second opinion on your Microsoft 365 licensing or want help preparing for these changes, scheduling a review now can help you make informed decisions before key deadlines arrive.
Keep an eye on our Learning Center. We will be sharing more updates as Microsoft rolls out additional changes over the next few months.
