Significant License Price Increases Take Effect, Copilot Ecosystem Expands with Real-World Integrations

This briefing covers critical developments across the Microsoft 365 ecosystem, highlighting strategic shifts in pricing, security, and AI integration that require immediate executive attention.

• 💰 Significant License Price Increases Take Effect
  Starting this month, Microsoft has implemented substantial price hikes across its commercial licensing. While the M365 E5 tier sees a 5% increase, the Business Basic plan has risen 17%, and the F1 plan has gone up by as much as 43%. This move is paired with deeper integration of AI features, forcing a strategic reassessment of licensing value. 
• 🔐 Mandatory Migration to Entra B2B for External Sharing
  The retirement of SharePoint Online (SPO) One-Time Passcodes (OTP) for external sharing is now underway . As of July 2026, external users without Microsoft Entra B2B guest accounts will begin to experience access issues. Organizations must ensure external collaborators are transitioned to Entra B2B to maintain business continuity and adhere to new security governance standards. 
• 🤖 Copilot Ecosystem Expands with Real-World Integrations
  Microsoft’s Copilot strategy is moving beyond general-purpose chat. Xero has integrated its AI agent, JAX, with Microsoft 365, allowing users to query real-time financial data directly within Copilot Chat, Excel, and Word . This brings powerful, contextual insights to business workflows. Additionally, the Microsoft 365 Copilot app is receiving a major interface update with new navigation and a “Tasks” tab to better manage AI-driven activities. 
• 🖥️ Power Platform & Teams Operational Updates
  • Power Automate: A public preview for direct scheduling of desktop flows is expected this month, enhancing management and reducing the need for workarounds. 
  • Power BI: A critical migration from the legacy ODBC to the modern ADBC connector for the Power BI Service begins this month. Tenant admins have a temporary option to revert to ODBC, but the transition to ADBC is a mandatory update. 
  • Microsoft Teams: The rollout of a refreshed and more efficient meeting experience begins in July, alongside new chat organizational features.