If your business uses Microsoft 365, there’s an important change on the horizon: On July 1, pricing is set to increase across most plans. And while that’s never welcome news, now is a valuable opportunity to reassess what you’re using and not using and evaluate whether you’re getting the most benefit from the Microsoft suite you’re currently paying for (and will be paying even more for soon).

What’s the price increase?

For many small and mid-sized businesses, Microsoft’s price increases will be hefty, with some plans expected to rise by as much as 12–17%, which can quickly add up across teams.

Because most organizations are deeply embedded in the Microsoft ecosystem, switching completely isn’t a realistic option… which is why this moment matters for you.

How To Evaluate Your Microsoft 365 Licensing Strategy

1. Evaluate what functionality you’re actually using.

Before simply absorbing the cost increase, ask yourself (or your team):

  • Are we on the right plan for how we use Microsoft 365?
  • Are we paying for features we don’t use? Which ones?
  • Come July, could a higher-tiered plan offer better value given the pricing shifts?

That last question may seem perplexing, but you may find that upgrading to a higher-tier plan, especially one with enhanced security, makes more sense than staying with an option that’s closer in price. Or, you may discover you’re overpaying for licenses that don’t match how your team actually works.

As we discussed in a previous article, even small inefficiencies, when multiplied across users, can sneakily cost thousands each year.

2. Consider how you purchase your Microsoft licenses.

Another often-overlooked factor is who you purchase your licensing from. Many businesses buy directly from Microsoft, which typically means paying full retail price and relying on less-than-responsive general support channels.

While this option sometimes works, it often lacks personalization and responsiveness.

The better option? Instead of navigating everything alone and purchasing directly from Microsoft, consider working with a reseller partner. Reseller partners can offer the following:

  • Licensing audits to eliminate waste
  • Guidance on plan selection and structure
  • Additional layers of support and escalation
  • Potential cost savings through discounted pricing

With a reseller partner like Atlantic Data Systems, you’ll get a partner who understands your environment and can advocate on your behalf.

3. Don’t rush into AI—prepare for it.

With Microsoft pushing adoption of Copilot, its AI tool, many businesses are itching to integrate it. But there’s a catch: AI is only as effective as the environment it operates in.

If your data is disorganized—spread across disconnected SharePoint sites, sitting in poorly labeled folders, or utilizing inconsistent file structures—Copilot won’t fix that; it will amplify any problems that it causes. This is where being ready for AI tools matters. Before adoption, you should evaluate:

  • How your company data is organized
  • If your systems are structured logically
  • If your employees can easily locate and manage information (and what they should have access to).

Preparing for AI usage in your organization instead of jumping into AI ensures it becomes a productivity tool, not a source of confusion or a security issue.

4. Take action before July.

Unfortunately, Microsoft price increases, like most costs, aren’t going away. But while licensing is a recurring expense, inefficiencies that compound over time don’t have to be part of your budget. You can limit your July price increases by auditing your current licensing setup, comparing plan options, eliminating unnecessary tools, and exploring better purchasing structures.

Bonus: Your businesses may even be able to lock in current pricing by purchasing annual plans in advance, depending on your cash flow and strategy.

If you’re facing these increases and wondering what your move should be, we can help. Contact us at Atlantic Data Systems today, and we’ll schedule an assessment of your Microsoft 365 usage and help you plan for what steps make the most financial sense come July 1.