Advancing Microsoft 365: New Capabilities and Pricing Updates Explained
On 4 December 2025, Microsoft announced significant changes to Microsoft 365. Introducing new AI powered features, enhanced security, and endpoint management capabilities, alongside a global pricing update effective July 2026. Here’s what this means for your organisation and how Indiko Data can help you prepare.

What’s Changing?
1. AI Gets Smarter and More Integrated
- Copilot Chat Enhancements: Now understands inbox and calendar context, plus introduces Agent Mode across Word, Excel, PowerPoint, Outlook, and OneNote.
- Enterprise Controls: Admins gain new tools to manage Copilot usage, enforce compliance, and monitor adoption.
Why it matters: These upgrades move Copilot from a novelty to a strategic productivity engine, ideal for organisations looking to automate repetitive tasks and accelerate decision making.
2. Security and Compliance Uplift
- Defender for Office Plan 1 features will be added to Office 365 E3 and Microsoft 365 E3, strengthening protection against phishing and malicious links.
- Safe Links checks expand to E1, Business Basic, and Business Standard.
Impact: More users get advanced security without paying for separate addons, a win for risk reduction.
3. Endpoint Management Upgrades
Microsoft is folding Intune Suite capabilities into E3 and E5:
- E3 gains Remote Help, Advanced Analytics, and Intune Plan 2 features.
- E5 adds Endpoint Privilege Management (EPM), Enterprise App Management, and Cloud PKI for certificate lifecycle automation.
Why it matters: These tools help IT teams resolve issues faster, reduce local admin risk, and improve device health, critical for hybrid work environments.
4. Security Copilot for E5
Security Copilot, with over 70 prebuilt agents, will be included for all Microsoft 365 E5 customers. Expect a 30day admin centre notice before activation.
5. Teams Packaging
Microsoft has reintroduced Enterprise suites with Teams globally, alongside versions without Teams and standalone Teams licences. This gives organisations flexibility to choose based on collaboration needs.
6. SMB Copilot Launch
For businesses with up to 300 users, Microsoft 365 Copilot Business is now available at $21 per user/month, with promotional discounts running until March 2026.
Pricing Changes from July 2026
Microsoft will adjust global list prices for several plans:
- Business Basic: $6 → $7
- Business Standard: $12.50 → $14
- Microsoft 365 E3: $36 → $39
- Microsoft 365 E5: $57 → $60
- Frontline F1: $2.25 → $3
(Business Premium and Office 365 E1 remain unchanged.)
UK pricing will follow Microsoft’s local market adjustments.
What Should You Do Now?
1. Review Your Licensing Strategy
Assess whether you are still on the right license! With these new features and opportunities, it may be the right time to upgrade.
2. Plan ahead for Copilot
If you’re not already working on a Copilot rollout, come and speak to us about how we can help you deliver AI in the workplace.
3. If you are on E5, explore your new features
Security Copilot is the big item but E5 is getting so much more powerful in general. Take time to research and get your team ready for those new features.
4. Budget for July 2026
Factor in price changes, and if you are using a monthly commitment, consider moving to an annual commitment before July to lock in your prices for a little longer.
How Indiko Data Can Help
- Security Hardening: Implement Defender and Purview policies, plus least privilege access with EPM.
- Endpoint Strategy: Deploy Intune features and streamline device management.
- Copilot Adoption: From readiness assessments to ROI dashboards, we make AI work for your business.
- Licensing Optimisation: Model scenarios to minimise cost impact and maximise value.
Final Thought
These changes aren’t just about higher prices, they represent a major leap in capability. Organisations that plan now will turn this into an opportunity for smarter, safer, and more productive work.









