Microsoft 365 pricing update

Microsoft's pricing update for selected Microsoft 365 commercial products took effect on 1 July 2026. Existing subscriptions move to the applicable new price at renewal. Your licence, commitment term, renewal date and purchasing arrangement determine the effect on your organisation.

We wanted to share a quick update so you know what is happening and what options are available.

What is changing?

Microsoft is adjusting pricing across parts of the Microsoft 365 range. The impact will depend on:

  • Your licence type
  • Your current billing arrangement
  • Your renewal date

It is worth separating two things that are easily confused: your commitment term and your payment frequency. An annual commitment can be paid monthly, so monthly payments do not by themselves tell you when a subscription renews. Microsoft's commercial pricing FAQ is a global document in USD, not an Anvil NZD price list.

If you want price certainty for the next 12 months, Microsoft allows customers to move to an annual commitment with annual payment. This can:

  • Lock in pricing for a full year
  • Avoid month-to-month increases during that period
  • Make budgeting more predictable for the next 12 months

This is optional and depends on what works best for your business. Ask us for a current NZD quote and a review of the commitment and payment options available to you. The earlier opportunity to renew before July at pre-change pricing has now passed.

There are also packaging changes affecting some Business Basic and Business Standard subscriptions, including a larger primary mailbox allocation and Copilot Chat enhancements. Eligibility and rollout vary by suite, so check your tenant's Message Center rather than assuming every change has reached your subscription. A primary-mailbox entitlement does not add archive functionality or override a custom quota.

How we can help

If you would like to understand if annual commitment makes sense for you, we are happy to help. Just reply to this email or contact Ash on the phone and we can walk through it with you.

Cheers, The Anvil Solutions Team