Skip to Main Content

Want to stay up-to-date with the latest IT news?
Subscribe to our mailing list to hear the latest news, events, free resources, and more for your industry.

Sign up now
Blog

What’s changing with Microsoft 365 – and what it means for you

4 minute read

Becky Brown

December 5th, 2025

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.

Image of a smiling IT support professional talking on a headset
Becky Brown Headshot

About the author

Becky Brown, Head of Microsoft Licensing and Strategy.

Becky has been leading the Microsoft Licensing practice since 2016. With her extensive experience in managing Enterprise Agreement contracts and customers’ licensing requirements, Becky has built one of the largest Microsoft Licensing Teams in the channel. 

In 2022, Becky’s role expanded to include leading Phoenix’s regional strategy. She has been successful in strengthening our relationships with both Microsoft and customers in the North-West and North-East regions, expanding our available office space to these areas through the development of partnerships with customers in region.  

Connect with Becky on LinkedIn.