London SMB Price Guide: Microsoft 365 licensing changes
Summary
Microsoft is raising prices on select Microsoft 365 plans effective 1 July 2026 and removing the NCE grace period from 1 April 2026, while Office LTSC 2021 support ends on 13 October 2026. The July increase targets Business Basic, Business Standard and Enterprise E3/E5 (Business Premium remains unchanged), and Microsoft cites added Copilot, Defender and Intune features as justification. From April, expired subscriptions enter an Extended Service Term billed at a premium monthly rate, so missed renewals can immediately increase costs. The guide instructs London SMBs to audit licences, remove inactive accounts, review user personas, consider early annual renewals or upgrades to Business Premium, and investigate Azure Hybrid Benefit and SQL licensing to offset the impact. Act now to lock pricing, reduce over-licensing and avoid connectivity or compliance risks when support ends.
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