Microsoft in 2026: what the pricing changes mean for your next renewal
Microsoft has made multiple changes in a short period: volume discounts in the Enterprise Agreement disappeared, Microsoft 365 became more expensive, and CSP was also adjusted. What does this mean for your next renewal?
- October 5, 2026
- 5 min
For many Enterprise organizations, Microsoft represents the largest Software contract. This area has seen many changes recently. Here’s an overview of the main changes and what you can do about them.
The changes at a glance
November 1, 2025: volume discounts in the Enterprise Agreement disappeared. Organizations that previously received discounts based on their user count will pay the standard price level at their next renewal. Depending on the situation, this can be up to about 12% more expensive.
July 1, 2026: Microsoft 365 price increase. The price increase applies to all purchasing channels: Enterprise Agreement, CSP, and direct. For example, Microsoft 365 E3 went from $36 to $39 and E5 from $57 to $60 per user per month (U.S. list prices). This comes with extra functionality, such as Defender for Office 365 Plan 1 in E3.
October 1, 2026: surcharge on CSP Software with monthly payment. For annual subscriptions paid monthly, such as Windows Server, SQL Server, and CALs, Microsoft charges an additional 5%. This does not apply as a general increase for Microsoft 365.
Windows 10 Extended Security Updates. Those still using Windows 10 pay double for the second year of security updates compared to the first year.
What does this mean for your organization?
Review your license mix critically. Are you paying separately for Defender while it is now included in E3? You might be double paying.
Watch the payment frequency. Paying annually instead of monthly avoids the new surcharge on CSP Software.
Consider price protection. A three-year term locks in the price but limits your flexibility.
Reassess your purchasing channel. Microsoft is increasingly steering organizations towards CSP or the Microsoft Customer Agreement for Enterprise. Which option is most advantageous depends on your size and needs.
How SoftVaro helps
Your Microsoft contract rarely stands alone within your Software landscape. SoftVaro advises on your license mix and terms alongside your existing Enterprise Agreement. At the same time, we look at all other Software vendors surrounding it.
Frequently Asked Questions
The most asked questions about this topic.
Does the July 2026 price increase apply immediately to my current subscription?
No. Existing subscriptions keep their price until the next renewal. The new price takes effect at the start of your new term.
Is CSP more cost-effective than an Enterprise Agreement?
That depends on your size, duration, and flexibility requirements. It pays off to calculate both scenarios before your contract expires.
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