Windows 365 Frontline license SKUs have been renamed to Windows 365 Flex
Microsoft has now renamed the Windows 365 Frontline license SKUs to Windows 365 Flex. Only the display name changed, while SKU ID, term, and price stay the same.
Licensing
Updates to the Copilot Premium pricing model
Microsoft is changing how it prices Copilot Premium. Everyday use remains included in the Microsoft 365 Copilot license, while advanced AI features such as Cowork, Code, Autopilot, and parts of Copilot in SharePoint move to usage-based billing with Copilot Credits.
Upcoming changes to Teams Events licensing for Microsoft Cloud customers
Microsoft is restructuring Teams Events into foundational and advanced event features, with updated license mappings starting at the end of September 2026. Admins should review the licenses assigned to Teams Events organizers and assign an eligible Teams Enterprise license to organizers who need advanced event features.
Microsoft is now terminating the Office 365 E3 Developer subscriptions
As announced in June, Microsoft is now terminating the existing Office 365 E3 Developer subscriptions, a few days later than scheduled.
New Microsoft 365 Copilot Business subscriptions from CSP Partners will come with PAYG preconfigured
Starting on 1 December 2026, Microsoft will preconfigure usage-based PAYG billing for new Microsoft 365 Copilot Business purchases via a CSP Partner.
New Teams Premium trial offer for eligible organizations
Microsoft has introduced a Teams Premium trial offer for eligible organizations, granting a 90-day trial subscription and a potential 50% discount on a one-year Teams Premium subscription for organizations with active Queues app usage.
OneDrive Pay-as-you-go Storage as a new Microsoft billing service
Microsoft is rolling out the new OneDrive Pay-as-you-go (PAYG) billing service, letting SharePoint administrators extend OneDrive storage beyond a user’s licensed limit, up to 25 TB per account, and pay only for the overage.
Microsoft increased Power Apps Premium licensing costs
Microsoft increased the pricing for Power Apps Premium licenses on 1 September, with increases of up to 17% depending on market and term.
Microsoft updated the local currency pricing adjustments for Commercial Cloud customers
Microsoft has updated the cadence for local currency pricing adjustments in its Commercial Cloud services, moving from twice a year to once a year. Updates every January, with advance notice each November.
Microsoft offers a free Purview upgrade for Defender for Cloud Apps customers
Microsoft has published a new promotional offer for the Defender for Cloud Apps standalone license, allowing eligible customers to order a free Microsoft 365 E5 Information Protection and Governance upgrade for up to three years.