Microsoft has confirmed pricing updates for selected Microsoft 365 and Office 365 plans from 1 July 2026. Australian organisations still have time to review their licensing, renewal dates and procurement model before 1 June.
Microsoft 365 E3 is going up 8% and E5 by 5%, with other Business, Enterprise and Frontline plans also moving. Existing customers stay on current pricing until renewal, which makes the months before 1 July the window to review your licensing fit and any options to soften the impact.
For organisations wanting to assess options before the change applies, timing matters. Tecala needs to review eligible term-committed pricing and licence procurement changes by 1 June 2026 to allow enough time to assess availability, confirm requirements and complete any necessary changes.
For most organisations, the bigger question is whether the current licensing mix still matches how the business actually works.
Microsoft environments accumulate over time. People change roles, contractors come and go, security requirements move, and new capabilities are adopted without older licences always being retired. A price change is a natural prompt to check what is actually being paid for.
A few questions are worth answering before renewal:
🔶 Are users on the right plan for their role, or are some sitting on more licence than they need?
🔶 How many licences are assigned to inactive, duplicated or departed users?
🔶 Are frontline and operational staff on appropriate Frontline plans rather than full Enterprise licences?
🔶 Does your renewal date give you room to consider term-committed pricing before the price change applies?
🔶 If you buy direct from Microsoft, could a different procurement model reduce the impact?
If you are preparing for Copilot or broader AI adoption, the same review should also confirm that your identity, data governance and security foundations are licensed in the right place. Copilot value depends heavily on the quality and security of the Microsoft environment underneath it.
There are two specific options worth weighing up before the 1 July 2026 pricing change applies.
1. Explore term-committed pricing before 1 July 2026
In certain cases, organisations may be eligible to secure term-committed pricing arrangements before the increase applies. Eligibility depends on your current licensing agreement, renewal timing and the options available to your organisation.
If you would like Tecala to assess whether this option is available to you, please contact your Tecala account executive or complete the form on this page by 1 June 2026.
2. If you buy direct from Microsoft, consider moving licensing to Tecala
If you currently purchase Microsoft licensing directly from Microsoft, moving your licence purchase arrangement to Tecala may help reduce the impact of the price increase.
Customers who buy licensing through Tecala can receive 5% or more off Microsoft retail pricing on eligible licences. This depends on the licences involved and your current purchasing arrangement, so it should be reviewed alongside any term-commitment decision.
To ensure there is enough time to complete any required changes and secure the best available outcome, this conversation needs to be concluded by 1 June 2026.
Start with a clear picture of the current environment: active licences, assigned users, renewal dates, agreement terms, and any known changes coming in workforce structure, security posture or AI rollout.
From there, most of the value comes from practical adjustments: removing unused licences, right-sizing plan types, consolidating overlaps, and matching licensing to a more accurate user profile.
If you would like a tailored review of your Microsoft 365 licensing, including the likely AUD impact, optimisation opportunities, and whether term-commitment or a change in procurement model makes sense for your environment, complete the form on this page or contact your account manager by 1 June 2026 and our team will be in touch.
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