Microsoft 365 new capabilities and pricing updates: Expanding product value to more organizations

On December 4, 2025, we announced an upcoming increase to our commercial pricing for Microsoft 365 Suite subscriptions, effective July 1, 2026. This change reflects the significant value across security and management that we've delivered to our customers and our ongoing commitment to continuous innovation.

Note: Price increases will apply to new and renewing customers starting July 1, 2026. Existing customers on commercial Microsoft 365 subscriptions impacted by the price increase will see the new prices at their next renewal after July 1, 2026. Start planning today for upsell conversations for Microsoft 365 Business + Microsoft 365 Copilot bundles and Microsoft 365 E3 or E5 with prioritized customers to lock in current pricing prior to price increases.

Read more about the pricing and packaging changes coming to the Microsoft 365 commercial suites. Leverage the Partner Launch Kit (partner FAQ, sales guidance deck, Customer OFT, and more) to get started with your upsell and renewal plans with high-priority customers. You can also visit our Marketing Moments events page to watch the December 4 CSP Marketing Moment event: Maximize Microsoft 365 Renewals on demand.

Global changes to Microsoft 365 and Teams licensing and discounting

On September 12, 2025, the European Commission (EC) announced the finalization of the settlement agreement with Microsoft in its investigation regarding Microsoft’s inclusion of Microsoft Teams in Microsoft 365 and Office 365 suites. Microsoft will expand interoperability and data portability resources and make additional changes to licensing and pricing for Microsoft 365, Office 365, and Microsoft Teams. These changes are designed to enhance flexibility, support open ecosystems, and give customers more options to meet their unique needs.

Partners can learn more about these changes in the Partner Blog and the impact for partners in the partner FAQ.

Three-year subscription terms for Microsoft 365 E3, Microsoft 365 E5, and Microsoft Teams Enterprise in CSP

On June 1, we’re introducing new three-year terms for Microsoft 365 E3 (with or without Teams), Microsoft 365 E5 (with or without Teams), and Microsoft Teams Enterprise in CSP, enabling partners to accelerate upsell opportunities with new and existing customers.

These three-year SKUs have upfront and annual billing options only. They have a minimum purchase requirement of 100 seats (enforced at SKU level) and are available at the same price as the annual term SKUs.

With the introduction of the new three-year term offer in CSP, partners will be able to change the subscription term for customers who have monthly and/or annual term subscriptions of Microsoft 365 and Office 365 Enterprise suites with Teams, to these three-year EOS SKUs and keep their Teams entitlement (both mid-term and at renewal).

New to-partner 10 percent off promo on Microsoft 365 E3 and Microsoft 365 E5

This limited-time promotion for new-to-Microsoft 365 E3 or E5 customers offers a 10 percent discount on new CSP three-year term subscriptions, enabling partners to tap into deal-making capabilities to capture market growth opportunities and drive value-added services. Partners can leverage this offer to streamline customer operations, reduce vendor management complexities, and help customers prepare for the future of work with AI-powered tools. The promo will be available worldwide from June 9, 2025 through December 31, 2025. Find details in the readiness guide.

Microsoft 365 E5 Security/E5 Compliance mini-suites three-year SKUs and three-year 10 percent off promo

Starting July 1, 2025, a three-year subscription and 10 percent off promo for Microsoft 365 E5 mini suites, which includes Microsoft 365 E5 Security and E5 Compliance, have also been introduced.

Please refer to these resources to help support customers with the changes and to learn more about the three-year SKUs and 10 percent off promo for customers.

AI-assisted process to cancel redundant services in CSP

Microsoft is streamlining the cancellation and credit support experience related to the process of implementing many-to-one upgrades. Specifically, the support process for subscription upgrades is being automated, enabling duplicate subscriptions resulting from many-to-one upgrades to more easily and quickly be processed in Partner Center after an upgrade to a higher-level SKU. This should greatly reduce the support ticket friction partners currently have with cancellation of duplicate (redundant) licenses and accelerate the time to implement upgrades. This new capability includes:

The ability to cancel duplicate subscriptions after an upgrade for specific many-to-one upgrade paths. Note: AI Assistant is available only in English today.
A support prompt for the cancellation of duplicate subscriptions after a many-to-one upgrade. Partners will be able to follow the prompt guide to submit the information AI Assistant needs to process their support ticket. AI Assistant will then confirm the supported upgrade path and process the support ticket. The expectation is to reduce support resolution times to approximately four days or less with this new automation.

Please refer to these resources to help support customers with the changes.

Microsoft 365 policy, packaging, and pricing updates for CSP