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Guide to Microsoft 365 Licensing Updates (2026)

Microsoft changed M365 licensing and most IT admins are still working out what it actually costs them. Stack it all together and your next renewal could land 30 to 50% higher than you planned for. Here's what to work out before you sign.

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What actually changed?

Renewal is coming and someone needs answers. Do you want E7? How many Agent 365 licenses? Are you capping Copilot spend, and at what?

Between March and July 1, Microsoft reworked pricing, bundling, and enforcement across the stack. List prices went up between 5% and 33% depending on your plan. That's the part everyone saw.

It all changed at once, and no admin screen assembles the full picture.

The increase you were quoted isn't the increase you'll pay.

What the quote doesn't show you

It's not just a price change.

  • Unassigned seats auto-renew

  • Inactive licenses don't clean themselves up

  • Storage moved to pay-as-you-go billing

  • Copilot, Cowork, and Scout all bill differently

  • Two Microsoft plans can't buy Agent 365 at all, at any price

  • One change that will silently break your saved detection queries

  • Entitlement enforcement is no longer an honor system

Get the full breakdown of changes, pricing, and the pre-renewal checklist.

Renewing sooner? Get in touch to talk it through.

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2026 M365 Licensing Changes Cover Page

What's Inside

Your licensing questions, answered

  • The July 1 changes: prices go up, and what you may already own
  • Microsoft 365 E7: the $99 Frontier Suite. Does it save money?
  • Agent 365: prerequisites for Microsoft's native agent governance tool 
  • Consumption-based licensing: Cowork, Scout, and SharePoint storage
  • Finding the information: where your licensing data actually lives
  • Your pre-renewal checklist: eight moves before you sign
  • How to stop paying for what nobody uses
  • See your own licensing picture in 28 days

Written by

Michal Pisarek

Michal Pisarek

Co-Founder & CEO

7× SharePoint MVP
David Francoeur

David Francoeur

Head of Product Strategy & Innovation

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