• Blogs
  • |
  • Cybersecurity
  • |
  • Education
  • |
  • Technology

Microsoft 365 Is Changing in 2026

What the New Capabilities and Pricing Mean for Your Business 

Microsoft recently announced a significant evolution of Microsoft 365, which combines expanded AI capabilities, deeper built-in security, stronger device management, and a global pricing update effective July 1, 2026. 

For organizations already invested in Microsoft 365, this is more than a pricing change. It’s a shift in how productivity, security, and management tools are delivered—and how IT leaders should plan budgets, licensing, and strategy moving forward. 

Below, we break down what’s changing and what it means for your organization. 

What’s Changing in Microsoft 365 

1. Enhanced AI Capabilities Become Core 

Microsoft is embedding Microsoft 365 Copilot Chat across core applications, including Word, Excel, PowerPoint, Outlook, and Teams. 

What this means in practice: 

  • Conversation-driven productivity becomes the norm, not an add-on 
  • AI-assisted email drafting, document creation, data analysis, and meeting preparation are available in more plans 
  • Automated workflows and contextual insights are built directly into everyday tools 

For many organizations, this reduces reliance on third-party productivity and automation platforms while accelerating employee efficiency. 

2. Stronger Built-In Security and Compliance 

Security capabilities that were once premium add-ons are now becoming baseline features across more Microsoft 365 suites. 

Key enhancements include: 

  • Microsoft Defender for Office 365 Plan 1 included in more licenses, including E3 
  • Advanced phishing protection, malware scanning, and threat detection as standard 
  • Expanded Intune device management and compliance capabilities across E3 and E5 
  • Security Copilot agents integrated into Defender, Intune, and compliance tools to automate detection, investigation, and response 

This represents a major step forward for organizations looking to improve their security posture without stacking multiple point solutions. 

3. Expanded Device and Endpoint Management 

Microsoft continues to strengthen endpoint visibility and control across its licensing tiers. 

Highlights include: 

  • Intune Remote Help, Advanced Analytics, and portions of Intune Plan 2 included in more licenses 
  • Additional E5-only capabilities such as privilege management, app governance, and Cloud PKI 

For hybrid and remote work environments, these improvements help IT teams manage devices more effectively while reducing risk. 

4. Pricing Updates Effective July 1, 2026 

Microsoft confirmed global price increases across: 

  • Business plans 
  • Enterprise plans (E3 and E5) 
  • Government plans 
  • Nonprofit plans (with proportional adjustments) 

Microsoft positions the pricing changes as reflective of the increased value and expanded built-in capabilities now included in the platform. 

What This Means for Your Organization 

✔ More value in core licenses 
Many organizations may no longer need separate add-ons or third-party tools for AI productivity, email security, or device management. 

✔ Stronger security by default 
Email, identity, and endpoint protection are significantly improved without requiring immediate license upgrades. 

✔ Budget planning is essential 
With pricing changes coming in July 2026, now is the time to evaluate renewals, long-term contracts, and projected spend. 

✔ A chance to simplify your technology stack 
Consolidating AI, security, and management tools into Microsoft 365 can reduce complexity, vendor sprawl, and operational overhead. 

Key Questions IT and Finance Leaders Should Be Asking 

  • Are you fully leveraging your current Microsoft 365 AI and security capabilities? 
  • Do your licenses align with your organization’s growth, remote work strategy, and compliance requirements for 2026? 
  • Are you paying for tools that will soon be redundant due to Microsoft’s expanded built-in features? 
  • How will the July 2026 pricing changes impact your budget and renewal planning? 
  • Would an E3 → E5 upgrade or license consolidation improve security, management, or compliance while reducing overall spending? 

How Secure Data Technologies Can Help 

At Secure Data Technologies, we help organizations turn Microsoft licensing changes into strategic advantages—not surprises. 

We can support you with: 

  • Microsoft 365 license optimization analysis to avoid overspending 
  • Security posture assessments aligned to new M365 capabilities 
  • FY26 cost projections based on your current tenant and growth plans 
  • Recommendations for consolidation or right-sizing licenses 
  • Migration and rollout services for AI, security, and endpoint management enhancements 

If you’d like to understand how these Microsoft 365 changes impact your environment specifically, now is the time to start the conversation. 

Let’s plan ahead—before renewals, pricing changes, and missed opportunities catch you off guard. Contact us today to find out how.