AI integration acceleration, security hardening, legacy platform retirement, and pricing realignment to fund next-gen features.

largest commercial pricing update since 2022, effective July 1, 2026, with increases ranging from 5% to 43% across Business, Enterprise, and Frontline plans. The changes are framed as a value expansion, justified by expanded AI, security, and management capabilities being added to existing tiers at no extra cost. Key themes: AI integration acceleration, security hardening, legacy platform retirement, and pricing realignment to fund next-gen features. Organizations should review renewals immediately—existing customers keep current pricing until their next renewal after July 1.

💰 PRICING & LICENSING (Microsoft 365 / Office 365)

• Global pricing update effective July 1, 2026 across all purchasing channels (CSP, EA, Web Direct)
• Price increase ranges:
  • Enterprise: 5% (E5) to 13% (Office 365 E3)
  • Business: 12-16% (Business Basic/Standard)
  • Frontline: 25-43% (F1/F3 without Teams)
• Business plans gain: 50GB additional mailbox storage + enhanced Copilot Chat
• E3/E5 enhancements: Microsoft Defender for Office 365 Plan 1 now included in E3; expanded security, compliance, endpoint management
• Exclusions: Business Premium, Office 365 E1, Microsoft 365 E7, standalone Teams, standalone Copilot add-ons remain unchanged
• Timeline: Existing customers retain current pricing until next renewal after July 1, 2026

🌐 SHAREPOINT ONLINE

• 🚨 CRITICAL: End of Support Milestones
  • SharePoint Server 2016 & 2019: End of support July 14, 2026 (no security updates, patches, or paid support)
  • InfoPath Forms Services & InfoPath 2013 Client: End of life July 14, 2026
  • SharePoint Add-In model: Retired April 2, 2026 (no longer functions in SharePoint Online)
  • SharePoint 2013 workflows: Retirement ongoing
• ✨ New Features & Capabilities
  • Public preview of SharePoint Copilot Apps starting July 2026 (GA targeted for later 2026)
  • SharePoint Agents in Teams: Chat one-on-one with SharePoint agents grounded in site data (early 2026)
  • AI-Powered FAQ Web Part: Auto-curates FAQs from document libraries using Copilot
  • Microsoft 365 Archive: File-level archiving launching July 2026 (move individual files to lower-cost storage)
  • SPFx 1.23.2 release (quality-focused)
  • Content Security Policy (CSP) enforcement on SharePoint Online for custom SPFx solutions (since March 1, 2026)
• 📋 Migration Urgency: Organizations on SharePoint Server 2016/2019 or using legacy Add-Ins/InfoPath must begin migration planning immediately

⚡ POWER AUTOMATE

• Deprecations:
  • Power Automate integration in Visio desktop app: Deprecated July 14, 2026 (export BPMN diagrams as cloud flows no longer supported)
  • Test Engine: Deprecated April 2026
• New Capabilities:
  • 2026 Release Wave 1 (April–September 2026) delivers:
    • Unified Control Center for Queue Monitoring and SLA Tracking
    • Work queues for structured work item management
  • DLP (Data Loss Prevention) extended to agent flows in Copilot Studio
  • Hyper-automation focus: Deep RPA integration for legacy interface interactions

📱 POWER APPS

• 2026 Focus Areas: Copilot-assisted development, AI Builder integration, enterprise governance
• Deprecations:
  • Editable Grid control & Read-Only Grid control: Deprecated in model-driven apps (March 2026)
• Trends:
  • AI-driven agents for intelligent document processing and decision-making
  • Self-healing workflows capable of handling exceptions and real-time routing
  • Governance evolution: From centralized IT control to shared strategic enabler
• Maturity: Platform has evolved from basic form builder to enterprise application platform

📊 POWER BI

• Version Updates:
  • June 2026 update published June 9, 2026 (version 2.155.756.0)
  • May 2026 update brought visual calculations & custom totals to GA
• Format Transition:
  • PBIR (Power BI Report) becoming default format:
    • Service rollout: June 2026
    • Desktop default: July/August 2026 (contingent on clean service rollout)
• Deprecations:
  • Legacy semantic model experience: Entry points removed May 31, 2026; models stop refreshing July 31, 2026
• New Features:
  • Copilot summary shortcuts on report ribbon and visual header
  • New Get Data experience in Power BI Desktop (preview)
  • Conversational chat in in-report Copilot (Power BI Mobile)
  • Direct Lake calculated columns and user-context-aware calculated columns (preview)
  • Set as landing page, subscriptions support for reports in org apps, column fixed width

💬 MICROSOFT TEAMS

• New Features (July 2026):
  • Enhanced peripheral data in Pro Management portal reports for BYOD spaces (flags faulty/missing devices)
  • Teams room builder in Pro Management portal (design & configure meeting spaces)
  • Bot identification in meetings: Organizers see external 3P bots in lobby; must explicitly admit
  • Profanity filter disabled by default for live captions (EU accessibility compliance)
  • Code formatting: Automatic line numbers when sharing code in chat
  • Video recap: AI-clipped meeting highlights with narration
  • Unified recap deletion: Delete meeting recording, summary, and notes in one place
  • Slash commands in compose box to reduce context switching
  • Linear, Cursor, and Atlassian Rovo agents in Teams (turn conversations into code, issues, project plans)
  • Live chat in Teams for small business customer connections

🌐 POWER PAGES

• 2026 Release Wave 1 (April–September 2026):
  • AI-powered features for secure, data-driven business portals
  • Agentic AI coding tools: Generate end-to-end sites with Power Pages skills
  • Enterprise-grade: Out-of-the-box security, hosting, scalability, governance
  • Enhanced workspace: Single interface for Pages, Styling, Data, and Setup
• Deprecations & Changes:
  • Table permissions enforcement: Starting June 2026, enforced for all forms and lists regardless of Enable Table Permissions setting
  • OData feeds list feature: Removed by June 2026 (migrate to Power Pages Web API)

🤖 COPILOT CHAT

• Expansion & Accessibility:
  • Copilot Notebooks rolling out to Copilot Chat users in July 2026 (previously Microsoft 365 Copilot E5 only)
    • Shared workspace for project context, reference sources, mind maps, study guides
  • Work IQ integration: Copilot can now search and query Dataverse business data in natural language
  • New Regenerate action: “Try Again” or “Switch Model” for alternative responses
  • Conversation history preservation: Word now preserves Copilot Chat history from chat to apps
  • Microsoft 365 Copilot Chat available in Teams chats, channels, and meetings (Windows, Mac, Web)
• Model Updates:
  • Claude Opus 4.7 rolled out to Microsoft 365 Copilot (improved instruction following, tool selection, visual understanding)
  • Claude Opus 4.8 available in Copilot Cowork (Early access) and rolling out to Copilot Chat, Excel, PowerPoint, Copilot Studio

🛠️ COPILOT STUDIO

• 2026 Release Wave 1 (April–September 2026):
  • Computer-using agents now available
  • Redesigned workflows and Work IQ extensibility
  • Agent-to-agent (A2A) communication now generally available
    • Agents can exchange information, delegate tasks, work together across systems
  • Support for extending agents built with Agent Builder in Microsoft 365 Copilot
    • New knowledge types, sophisticated tools, evaluation support
  • DLP for agent flows: Manage data access from cloud, desktop, and agent flows
• Enterprise Scale:
  • Managed security, governance, and operations for IT and security teams
  • Copilot Studio Kit: Suite of tools for testing custom agents, validating AI content, analyzing conversation KPIs

🤖 MICROSOFT 365 COPILOT (Overall)

• Copilot Cowork: Now generally available worldwide
  • Secure, AI-powered automation for complex enterprise tasks
  • Grace period: Tenants with Frontier program Cowork usage (March 30–June 16) not billed until July 1, 2026
• AI Agents:
  • Pre-built agents: Researcher, Analyst
  • Custom agents: Built with Agent Builder
  • Teamwork support: Helps groups plan, meet, and communicate across Teams, SharePoint, Viva Engage
• USL Inclusions: Copilot Chat; Copilot in Word, Excel, PowerPoint, Outlook, Teams; Work IQ context engine; multi-model system; pre-built & custom agents

🎯 STRATEGIC IMPLICATIONS & ACTION ITEMS

Immediate Actions (Next 30 Days):

• Review all Microsoft 365 renewals – Lock in current pricing if renewal is before July 1, 2026
• Audit SharePoint estate – Identify any reliance on Server 2016/2019, InfoPath, Add-Ins, or 2013 workflows
• Assess Visio + Power Automate integration – Plan migration from deprecated Visio BPMN export
• Evaluate Copilot adoption – Leverage new Copilot Chat features and expanded access

Medium-Term (Next 6 Months):

• Migrate legacy SharePoint – Move to SharePoint Online or modern alternatives
• Adopt new AI capabilities – PBIR in Power BI, Copilot Notebooks, SharePoint Copilot Apps (preview)
• Prepare for Wave 1 features – Power Platform, Copilot Studio, Power Pages updates (April–September)
• Train teams – New Teams features (bot management, video recap, code formatting)

Long-Term (2026-2027):

• Plan for AI-native workflows – Hyper-automation, agentic AI, adaptive processes
• Modernize governance – Balance security/compliance with innovation speed
• Leverage model choice – Claude Opus 4.7/4.8, multi-model systems for complex work