Microsoft 365: New Capabilities and Pricing Update.

What’s Changing?

Starting 1st July, 2026, Microsoft will introduce expanded AI, security, and management capabilities across Microsoft 365 offerings—alongside updated commercial pricing. These changes reflect Microsoft’s commitment to helping organisations of all sizes protect their people and data, streamline IT operations, and confidently embrace the future of work.

Key Enhancements Coming in 2026.

  • AI Everywhere: Copilot Chat is now integrated across Word, Excel, PowerPoint, Outlook, and OneNote, enabling a unified, secure AI experience. New features like Agent Mode will allow iterative collaboration with Copilot for creating high-quality documents and presentations.
  • Stronger Security: Enhanced email protection from Microsoft Defender for Office Plan 1 will be included in Office 365 E3 and Microsoft 365 E3. URL checks will also be added to E1 and Business plans to safeguard against malicious links.
  • Advanced Endpoint Management: Microsoft Intune capabilities—such as Remote Help, Advanced Analytics, and Endpoint Privilege Management—will empower IT teams to detect risks, maintain compliance, and keep devices secure.
  • Security Copilot for E5 Customers: Built-in security agents will streamline workflows for security teams using Microsoft Defender, Entra, Intune, and Purview.

Why This Matters?

Organisations face rising IT demands, complex threat landscapes, and the urgent need for AI-powered transformation. These updates ensure that Microsoft 365 continues to deliver productivity, security, and innovation at scale.

Pricing Updates.

New list prices will take effect globally on 1st July, 2026, with local market adjustments. Nonprofit pricing will align with commercial rates.

Microsoft 365 Suite

Microsoft 365 Copilot Business: AI for SMBs, Now Within Reach.

What’s New?

Starting December 1, 2025, SMBs worldwide can access the full power of Microsoft 365 Copilot at a price tailored for growing businesses. If you have a Microsoft 365 Business plan and fewer than 300 users, you’re ready to go.

Key Features:

  • Unified AI Experience across Word, Excel, PowerPoint, Outlook, and Teams.
  • Work IQ Intelligence Layer: Personalised productivity that understands your role and company context.
  • Enterprise-Grade Security & Compliance: No extra setup, data stays private and under your control.
  • Copilot Chat, Search, Pages, Notebooks & Customizable Agents included at no extra cost.

Why It Matters?

Copilot Business isn’t just another AI tool—it’s a competitive advantage for SMBs:

  • Automate emails, reports, and proposals.
  • Free up time for strategic work.
  • Make faster, more informed decisions.

Pricing & Bundles.

  • $21 per user/month for Copilot Business.
  • Available as a bundle with Microsoft 365 Business plans:
  • Business Basic + Copilot Business: Essential web and mobile apps.
  • Business Standard + Copilot Business: Full desktop suite for complete work flexibility.
  • Business Premium + Copilot Business: Advanced security and device management for growing businesses.

Available from 1st December 2025.

Plus! Starting from 1st Dec 2025, Microsoft are offering a limited time introductory offer for customers who want to get started with M365 Copilot Business:

  • 15% off M365 Copilot Business for one to 300 licenses ($18 pu/pm)
  • 35% off M365 Business Standard & Copilot Business for 10 to 300 licenses ($22 pu/pm)
  • 25% off M365 Business Premium & Copilot Business for 10 to 300 licenses ($32 pu/pm)
  • 50% off Purview Suite for Business Premium ($5 pu/pm)

Offer valid until: 31st March 2026

Microsoft 365 Copilot Pricing

Security Copilot Now Included with Microsoft 365 E5.

At Microsoft Ignite 2025, Microsoft announced a major update: Security Copilot—the AI-powered security assistant—is now included at no additional cost for all Microsoft 365 E5 customers. This marks a new era of ambient, autonomous cybersecurity, with AI agents embedded directly into the tools security teams use every day.

What’s New?

  • Built-in AI Agents across Microsoft Defender, Entra, Intune, and Purview.
  • Automatic Provisioning for eligible tenants—no extra setup required.
  • Phased Rollout starting 18th November, 2025, with 30-day advance notifications for activation.

Included Capacity:

  • 400 Security Compute Units (SCUs) per month for every 1,000 paid user licenses, up to 10,000 SCUs/month.
  • SCUs measure compute power for running Security Copilot workloads.
  • Usage resets monthly and applies across all workspaces in a tenant.

Key Capabilities:

  • Core Experiences: Chat, promptbooks, and agentic workflows for:
  • Identity and access management in Microsoft Entra.
  • Data security and compliance in Microsoft Purview.
  • Endpoint management in Microsoft Intune.
  • Developer Tools: Agent Builder, APIs, and integrations via MCP and Graph.
  • Partner Agents: Supported with SCU costs included (licensing may vary).

Why It Matters:

Security Copilot transforms security operations by:

  • Automating phishing triage, alert classification, and remediation.
  • Strengthening identity controls and reducing risk.
  • Enhancing compliance and data protection.
  • Freeing up security teams for strategic threat hunting.

Billing & Overages.

  • Included SCUs cover typical usage.
  • Additional capacity available at $6 per SCU on a pay-as-you-go basis (future option).
  • No manual provisioning required—Security Copilot is ready inside existing tools.

We encourage you to explore these new capabilities and take advantage of the promotions available to maximise the value of your Microsoft 365 investment.

If you have any questions or would like guidance on how to best leverage Security Copilot within your organisation, please reach out to your Bechtle Account Manager who will be happy to assist.