Tjeerd Edelman

May. 28,2026 | Software, Microsoft, CFO, CIO

For many organizations, Microsoft renewals have become routine. This summer, they should not be.

Beginning in July, Microsoft pricing changes are set to materially increase costs across several key Microsoft 365 licensing categories. Frontline SKUs are expected to rise approximately 25% to 33%, while many business-tier offerings are increasing 12% to 17%. For organizations renewing Enterprise Agreements (EAs) or cloud subscriptions in Q3, the window to influence commercial outcomes is rapidly closing.

The challenge is not simply the increase itself. It is that many organizations are approaching renewal discussions with the same posture they used in prior years, despite a fundamentally different pricing environment.

Microsoft knows two things right now:

• Many customers are under time pressure.
• Most customers have not materially re-evaluated licensing structure, quantities, or negotiation leverage before renewal.

That combination creates risk.

Too often, organizations focus exclusively on unit price discounts while overlooking the larger commercial mechanics driving long-term spend. In many cases, the biggest optimization opportunities are not found in a last-minute percentage concession. They are found in licensing alignment, product consolidation, timing strategy, Azure commitment structure, support entitlements, and contractual flexibility.

This is especially true for organizations that have experienced any of the following over the past 12 to 24 months:

• Workforce changes or restructuring
• Increased Copilot or AI adoption planning
• Hybrid work evolution
• M&A activity or divestitures
• Azure consumption growth
• Frontline workforce expansion
• Security and compliance platform changes

These events often leave organizations carrying legacy assumptions inside their Microsoft estate. By the time procurement engages, the commercial model may already be misaligned to operational reality.

The next six weeks represent one of the few remaining leverage windows before new pricing normalizes across the market.

Organizations preparing for Microsoft renewals should be evaluating several critical questions now:

• Are current license quantities and editions still aligned to actual usage?
• Is the organization over-buying premium functionality for broad user groups?
• Are there opportunities to segment frontline, business, and enterprise populations differently?
• Has Azure growth changed Microsoft’s willingness to negotiate?
• Are there non-price contractual provisions that should be revisited?
• Is the current reseller or licensing motion still the right fit?

Most importantly, organizations should avoid assuming that “standard renewal discounts” equal market competitiveness. In many cases, they do not.

At NET(net), we are seeing a disproportionate volume of Microsoft activity heading into fiscal year-end and the July pricing changes. That environment can create leverage for prepared buyers, but only if organizations engage before timelines compress and renewal urgency shifts negotiating power back to Microsoft.

The organizations that perform best during major pricing shifts are rarely the ones reacting at the deadline. They are the ones that reposition early, challenge assumptions, and enter negotiations with market intelligence and a defined strategy.

Six weeks disappears quickly in enterprise procurement.

The question is not whether Microsoft pricing is changing.

The question is whether your organization is prepared for what comes next.

NET(net) is an independent IT spend optimization and negotiation advisory firm that has helped organizations worldwide optimize strategic supplier agreements since 2002. Our focus is not selling Microsoft products. Our focus is helping clients buy Microsoft more effectively.

Whether through benchmarking, renewal strategy, licensing optimization, or direct negotiation support, NET(net) helps organizations validate pricing, challenge assumptions, and improve both commercial and contractual outcomes before agreements are finalized.

If your Microsoft renewal is approaching this summer, now is the time to evaluate your position before the market reset fully takes hold.

Learn more at www.netnetweb.com or contact NET(net) to discuss your upcoming Microsoft renewal strategy.

 About NET(net)

At NET(net), we don't just optimize IT investments, we weaponize them for competitive advantage. As the world's leading technology investment optimization firm, we've spent over two decades perfecting the art and science of extracting maximum value from technology supply chains while neutralizing vendor pricing manipulation.

Our battle - hardened methodology has influenced trillions of dollars in technology investments, captured hundreds of billions in documented value, and transformed how enterprises approach every facet of IT spend - from emerging technology such as AI, ML, IoT, RPA, Quantum, and Blockchain, to IaaS, PaaS, and SaaS, to enterprise hardware and software solutions, and professional services arrangements including strategic outsourcing relationships.

We're not consultants who theorize about optimization, we're the specialists who help you devise and execute your strategy. Our proven frameworks turn vendor pricing chaos into strategic opportunity, licensing complexity into competitive advantage, and cost centers into value engines. Whether you're facing an aggressive vendor audit, navigating a forced migration, or simply refusing to accept runaway IT costs, NET(net) delivers the expertise, experience, and execution you need to dominate rather than merely survive.

Founded in 2002, NET(net) has established itself as the essential strategic partner for enterprises and technology providers who demand performance, not promises. We've mastered every major area of IT optimization because we understand that in today's vendor-hostile environment, half-measures guarantee defeat.

Experience the NET(net) advantage. Contact us at info@netnetweb.com, visit www.netnetweb.com, or call +1 (616) 546-3100 to discover how we can transform your technology investments from cost burden to strategic weapon.

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