What’s changing with Microsoft 365 – and what it means for you
4 minute read
Becky Brown
December 5th, 2025
Microsoft has announced a major update to Microsoft 365 (M365) – combining new capabilities with adjusted pricing. So, if you use M365 in your organisation, it’s important to understand what these changes mean for you.
What’s new: extra value baked into core plans
To help organisations stay secure, compliant and AI-ready, Microsoft is rolling out a series of features – and importantly, bundling them into core licences rather than making them optional extras.
Endpoint management and device security becomes easier
The previous standalone Intune Suite – which offered remote help, advanced analytics, device management features and more – is being incorporated directly into enterprise licences:
- From 1 July 2026, users of M365 E3 and M365 E5 will automatically receive Intune Suite capabilities: including Remote Help, Intune Advanced Analytics, and Intune Plan 2.
- M365 E5 customers also get more advanced device management and identity tools such as Intune Endpoint Privilege Management, Enterprise Application Management, and Microsoft Cloud PKI.
This shift simplifies licensing: instead of buying a separate add-on, these endpoint and device management tools are now baked into your standard E3/ E5 licence.
Improved baseline security for email and collaboration
Security is also being stepped up. Microsoft is including enhanced threat protection for email and collaboration features in core plans:
- The email security features of Microsoft Defender for Office 365 (O365) Plan 1 will now be included in both O365 E3 and M365 E3.
- For other plans (e.g. O365 E1, Business Basic, Business Standard), URL checks will also be added – helping guard against malicious links in email and Office apps.
These additions aim to help organisations stay protected against phishing, malware, and other security threats, without needing additional security-only licences.
AI and productivity capabilities continue to expand
Microsoft is further embedding its AI-driven tools across the 365 suite. For example, the rollout of M365 Copilot Chat brings secure, integrated AI chat into core apps like Word, Excel, PowerPoint, Outlook and OneNote – with enterprise-grade controls for IT admins.
Taken together, these changes significantly increase the value of core Microsoft 365 licences – combining productivity, AI, security, endpoint management and compliance under a single plan.
The table below summarizes the new capabilities been added to the Microsoft 365 offerings.

What’s changing: new pricing from 1 July 2026
With these enhancements, Microsoft is updating list prices for its commercial Microsoft 365 plans, effective 1 July 2026. While local pricing may vary depending on currency and region, this price rise applies globally.
Though Microsoft didn’t publish a full regional UK price list yet, based on the announced global changes, you should expect:
- Higher per-user monthly costs for existing E3 and E5 licences
- Adjustments in renewals for customers currently licensed under older/ add-on-heavy models (e.g. E3 + separate Intune Suite)
Because features that were once optional add-ons (endpoint management, device security, Defender email protection) are now included, organisations may find that the new all-in-one price still represents good value – especially compared with buying multiple licences.
What this means for you – and what to do next
- If you currently use Intune Suite as a separate add-on, you’ll benefit. From 1 July 2026 that functionality will be included automatically under your main E3 or E5 licence.
- If you’re on Office 365 E3 or Microsoft 365 E3, you’ll get enhanced email security with Defender for Office 365 P1 included – potentially reducing the need for separate security licences.
- Because the pricing model is changing globally, now is a great time to review your current licence mix: you may be able to reduce total spend while upgrading your organisation’s security, device management and productivity baseline.
- For new deployments or renewals, evaluate E3/ E5 as more comprehensive all-in-one solutions rather than a base plus bolt-ons approach.
How Phoenix can help
As your trusted Microsoft partner, Phoenix is here to support you through this transition. If you’re unsure how these changes affect your estate – or want to explore whether now is the right time to consolidate licences – we recommend speaking with your Phoenix Account Manager or Phoenix Microsoft Licensing Specialist.
We’ll help you:
- Review your existing Microsoft 365 and add-on licences
- Model your licence needs under the new 2026 pricing and functionality bundle
- Identify potential savings or consolidate where it makes sense
- Plan renewal or migration to E3/ E5 under the new structure
Don’t wait until July 2026 – contact us now to optimise your licensing and ensure a smooth transition.

