How CDW Can Help You Navigate the Microsoft 365 Pricing Update

Microsoft’s July 2026 update introduces a combination of pricing adjustments, feature expansion and new value structures. Click here to learn more.

Microsoft 365 suite pricing will increase to reflect the ongoing addition of advanced AI, security and collaboration capabilities across the platform. These enhancements are designed to deliver more built-in value without requiring multiple third-party tools.

Microsoft continues to enhance the office productivity experience with improved security and management features. Customers can benefit from productivity automation, smarter search, enhanced collaboration and AI-assisted security that improve employee output across departments.

“While the price of certain M365 subscriptions is increasing, it also comes with a significant expansion of features and value. All plans will come with additional enhancements to the Microsoft environment, for example, with features around security and analytics. Other additions include Defender for Office, Intune and PIM, among others. URL protection is coming for Business products, as well,” said Benjamin Day, Supervisor, Microsoft Licencing & Solution Specialist, CDW Canada

“The price increase comes with a significantly improved value to companies with a Microsoft ecosystem. This is an opportunity to take a step towards becoming a frontier firm – a business that leverages the latest AI and security tools.”

• Productivity enhancements: Copilot Chat, now equipped with Agent Mode, will be available across Word, Excel, PowerPoint and Outlook, alongside enterprise‑grade tools to oversee and measure Copilot usage.
• Security upgrades: Plans such as Business Basic and Business Standard will gain URL protection. E5 customers will benefit from Security Copilot’s AI‑powered security features supported by more than 70 pre‑built agents.
• Endpoint improvements: New capabilities are coming to Microsoft 365 E3 and E5 suites that include remote help, advanced analytics and expanded Microsoft Intune features.

By opting for a three-year cloud service provider (CSP) commitment, Microsoft customers can unlock long-term value. The three-year CSP commitment allows customers to lock in their Microsoft 365 plan pricing for 36 months.

This way, they won’t be affected by the July pricing update or any future updates for the three-year term. It can help them realize value by getting price protection as well as strategic alignment for AI transformation plans.

Customers who secure pricing before the July 2026 changes can effectively lock in current rates, avoiding the immediate impact of the adjustment. For many organizations, this represents a direct cost-optimization opportunity.

The impact depends on your Microsoft 365 licencing structure and renewal timeline. The price change applies to various Microsoft 365 tiers starting from Business Basic, all the way up to Microsoft 365 F3. 

If your agreement renews after July 2026, you will transition to the new pricing model. If you renew before the change, you may be able to preserve current rates.

At the same time, longer commitments offer the strongest insulation against price increases, which is why it’s important to plan ahead.

In light of the upcoming changes, you may need to review your renewal options, product licences and adoption plans. This represents a significant undertaking for organizations of all sizes, as the price changes may impact budgetary decisions.  

CDW Canada, a renowned Microsoft partner, boasts 40+ dedicated Microsoft and 100+ security professionals certified up to gold standard level. We can help you optimize your Microsoft investments for cost predictability and future value.

Our approach combines licencing expertise with operational insight, ensuring your investment supports adoption, governance and AI readiness.

Through structured assessments and planning engagements, CDW helps customers:

• Align licences with actual usage and business roles
• Remove redundancy and reduce waste
• Build cost predictability into your long-term plans

This helps your Microsoft environment deliver measurable value and eliminate hidden inefficiencies.

For customers seeking price protection on Microsoft 365 plans for the next three years, CDW can help. Our CSP support services are specifically designed to help you manage licencing while enhancing digital capabilities.

The CSP support service offers:

• A dedicated customer portal to manage your own Microsoft licences (csp.cdw.ca)
• A team of highly certified Microsoft solution architects with 30+ Microsoft certifications
• A dedicated Microsoft solutions specialist to be your first point for all things Microsoft

Your organization can continue to enjoy predictable Microsoft pricing with a three-year CSP model alongside CDW’s tailored services for an effortless licencing experience. 

Customers can transition to the 3-year CSP term at any time. You don't need to wait until renewal to transition or upgrade. You can always upgrade and increase your term length for added benefits.

As part of the pricing update, key security offerings such as Microsoft Defender will be included in several Microsoft 365 plans. For instance, Microsoft Defender for Office 365 Plan 1 will be included in Office 365 E3/M365 E3.

CDW’s expert security services can help ensure you can make the best use of these security upgrades in your Microsoft environment, CDW’s MDR service is a Microsoft-verified offering that helps you defend against even the most sophisticated threats without additional tooling.

Our MDR services leverage Microsoft Defender to enable stronger defences by calibrating your built‑in capabilities, tuning policies and evaluating security posture.

With growing cyberattacks and increased focus on Microsoft security, MDR becomes the essential layer that gives IT teams the confidence that their environment is continuously protected.