class="wp-singular news-template-default single single-news postid-8394 wp-custom-logo wp-theme-microwarehouse tribe-no-js">
The February – July Pricing Window: How MSPs Can Maximise Margin on M365 Renewals
Reminder: If you have any upcoming renewals with Euro pricing on or after February 1st, they will see a 7.4% reduction on their pricing. Any M365 Suites renewing after July 1st will see a significant increase.
As we previously communicated in December 2025, Microsoft has announced a Price Reduction for Commercial Cloud Licensing Effective February 1st for Euro Customers.
All the details are below but it’s worth noting that there is also an increase of between 5%–33% coming to most Suites on July 1st.
For any renewals between Feb and July, you are in the sweet spot for the lower pricing, but for anything after July 1st, it is definitely worth speaking with your MWH account manager to see how best to maximise your margin and keep costs down as much as possible.
So what exactly is happening in February?
Microsoft has confirmed significant upcoming price reductions across several global currencies as part of its semi-annual currency alignment process. These changes will take effect from February 1st, 2026, and will affect customers renewing Microsoft Cloud licensing during what is traditionally a high-volume renewal season for us and our resellers.
This announcement brings the Euro Zone back in line with the UK who saw a similar reduction last February and ensures customers in affected regions benefit from consistent and fair pricing that stays in line with the US dollar — the benchmark Microsoft uses for global pricing alignment.
These adjustments apply only to Microsoft cloud services (such as Microsoft 365, Dynamics 365, and other Online Services). On-premises software pricing will remain unchanged.
How does it affect you and your customers?
Customers in the affected regions will see reduced pricing automatically applied at their next renewal after February 1st. This is particularly beneficial for organisations with large annual renewals approaching.
No Changes for Azure Consumption Pricing
Azure adjusts monthly based on FX rates and is not part of this specific price event.
And what exactly is happening in July
Effective July 1, 2026, Microsoft is adjusting global commercial list prices (USD) to account for added AI, security, and management capabilities.
- Commercial subscriptions will see increases ranging from +5% up to +33% depending on SKU.
We don’t have pricing yet and are unlikely to get a preview, but we do know the percentages that have been announced:
Example SKU Changes (% increase)
| SKU | % Increase |
| Microsoft 365 E3 | +8% |
| Microsoft 365 E5 | +5% |
| Office 365 E3 | +13% |
| Microsoft 365 F1 (Teams) | +33% |
| Microsoft 365 F3 (Teams) | +25% |
| Business Basic (Teams) | +16% |
| Business Standard (Teams) | +12% |
| Business Premium | No Change Announced |
Key Takeaways
- Price reductions for Microsoft Commercial Cloud licensing begin February 1st, 2026.
- Adjustments apply to CHF, DKK, EUR, NOK, and SEK.
- Cloud services only are affected — no changes to on-premises licensing.
- Increase in July, affecting most suites as AI capabilities are added
- Speak to your MWH account manager to get the most out of the lower pricing, we sometimes have hints and ways around these things!