Microsoft introduced a global pricing update across a number of Microsoft 365 commercial products from 1 July 2026.
While several Microsoft 365 subscriptions have increased in price, this is not simply a pricing adjustment. Microsoft has also expanded the capabilities included with a number of its Microsoft 365 plans, including increased mailbox storage, additional security features and enhanced Microsoft Copilot Chat capabilities.
For many of our customers, one of the most significant changes is the increase in Microsoft 365 mailbox capacity.
Business mailboxes increase from 50 GB to 100 GB
Microsoft 365 Business Basic, Business Standard and Business Premium now include a 100 GB primary Exchange mailbox per licensed user, increased from the previous 50 GB allowance.
This means customers on these Microsoft 365 Business plans effectively receive:
Previous mailbox capacity: 50 GB per user
New mailbox capacity: 100 GB per user
The additional capacity applies to the user’s primary Exchange mailbox and is separate from their OneDrive storage.
This is a particularly useful improvement for customers who have historically had to manage mailbox size carefully or consider alternative licensing purely because they were approaching the previous 50 GB mailbox limit.
Microsoft 365 Business pricing changes
The principal global Microsoft pricing adjustments affecting our Business customers are:
| Microsoft 365 Product | Global Price Change | Primary Mailbox |
|---|---|---|
| Business Basic | +16% | 100 GB |
| Business Standard | +12% | 100 GB |
| Business Premium | No global list-price increase | 100 GB |
| Apps for Business | +21% | Not applicable |
Business Basic and Business Standard therefore receive a substantial mailbox capacity increase alongside their pricing adjustment.
Importantly, Microsoft 365 Business Premium has not received a global list-price increase as part of this particular Microsoft adjustment, while still benefiting from the increased 100 GB mailbox entitlement and other product enhancements.
More than additional mailbox storage
Microsoft is also expanding functionality across its Microsoft 365 Business subscriptions.
Depending on the Microsoft 365 plan, these changes include enhanced Microsoft Copilot Chat capabilities, Copilot Chat analytics and additional email security functionality.
Business Basic and Business Standard also gain URL time-of-click protection, providing additional protection by checking supported links when users actually click them rather than relying solely on an earlier assessment of the link.
Microsoft’s continued integration of security, management and AI capabilities into Microsoft 365 reflects the broader evolution of the platform from a collection of productivity applications into a more comprehensive cloud productivity and security service.
When will my subscription price change?
The Microsoft global pricing changes became effective from 1 July 2026, but this does not necessarily mean every customer’s subscription changed on that date.
Microsoft 365 subscriptions are generally subject to the applicable pricing at their subscription purchase or renewal cycle.
As a result, customers may see revised pricing at different times depending on their individual Microsoft 365 subscription and renewal date.
Your Pro2col invoice will reflect the applicable subscription pricing when the revised Microsoft/CSP pricing becomes applicable to your service.
Why might my percentage increase differ?
The percentages published by Microsoft relate to Microsoft’s global commercial list-price adjustments.
Pro2col Microsoft 365 services are supplied through Microsoft’s Cloud Solution Provider (CSP) channel and billed in South African Rand.
Actual ZAR pricing can therefore also be affected by Microsoft CSP and distributor pricing, exchange-rate movements, subscription terms, billing frequency and other channel adjustments.
For this reason, the percentage change appearing on an individual Pro2col invoice may not correspond exactly with Microsoft’s published global percentage.
What do I need to do?
For existing customers, no action is required for your Microsoft 365 service to continue.
Where a Microsoft pricing adjustment applies to your subscription, the revised amount will automatically be reflected on your Pro2col invoice.
Customers are, however, welcome to contact us if they would like us to review their existing Microsoft 365 licensing.
As Microsoft continues to change the features included with its plans, it is worth periodically checking that your organisation is still using the most appropriate licence for each user. In some cases, a different Microsoft 365 plan may now provide a better combination of email capacity, desktop applications, security and management functionality.
Need help with your Microsoft 365 licensing?
Pro2col Lab can assist with reviewing your existing Microsoft 365 subscriptions, identifying unused or unnecessary licences and determining whether your current Business Basic, Business Standard, Business Premium or other Microsoft licensing remains appropriate for your organisation.
Contact Pro2col Lab
Email: support@pro2col.co.za
Tel: 021 201 1555
Information in this article relates to Microsoft’s 2026 commercial Microsoft 365 pricing and packaging changes. Microsoft licensing, features and pricing are subject to change. Pro2col customer pricing is based on the applicable CSP/distributor pricing and subscription terms.