Microsoft Licensing Changes 2026: What to Know Before Your Next Renewal

Executive Summary

Microsoft licensing in 2026 is changing across pricing, purchasing models, subscription commitments, user entitlements, and AI consumption. This guide explains the key updates organizations should understand before their next renewal, including changes to Enterprise Agreements, CSP and NCE terms, Microsoft 365 pricing and Teams packaging, Dynamics 365 license enforcement, and licensing for Copilot, Agent 365, and Copilot Credits.

For organizations still running Dynamics AX and/or Dynamics CRM, these changes create another important consideration. Moving to Dynamics 365 Suite is not simply a technology upgrade. It also changes how ERP / CRM users are licensed, how security roles influence license requirements, and how Finance, Supply Chain Management (SCM), Commerce, Sales, Customer Services, Customer Insights access needs to be planned.

The guide compares EA, CSP, and MCA-E, explains what Dynamics AX customers should consider before moving to Dynamics 365 Suite, and provides a practical checklist to help leaders determine what to renew, what to right-size, and what needs to change before migration.

The key takeaway: Microsoft renewal and AX modernization should be treated as optimization opportunities, not administrative rollovers. 

Microsoft Licensing Changes at a Glance

Click to For Know About Detailed MS Dynamics Pricing : Dynamics 365 Licensing Guide 2026

Still on Dynamics AX / CRM? What Changes When You Move to Dynamics 365?

For Dynamics AX / CRM customers, licensing should be part of the migration conversation from the beginning.

Older AX /CRM environments were built around traditional licensing approaches such as Server and Client Access Licenses. Dynamics 365 Finance, SCM, Commerce, Sales, Customer Service, Customer Insights operate under a subscription-based, named-user model where the functionality users access and the security roles assigned to them help determine licensing requirements.

That means an AX-to-Dynamics 365 suite migration should not simply carry existing users and roles forward unchanged.

Organizations should assess:

• Which AX users actually require Finance capabilities;
• Which AX users require SCM capabilities;
• Which AX user require Commerce capabilities;
• Which of those users need access across multiple Dynamics 365 applications;
• Which users can operate with lighter Team Members or Operations Activity access;
• Whether legacy security roles include privileges users no longer require;
• What is concept of Base and Attach licensing;
• How integrations, devices, warehouse users, and production users should be licensed.

Similarly, CRM-to-Dynamics 365 suite migration should also be well thought off.

Why these matters

Years of AX / CRM customizations, workarounds, and security-role changes can leave organizations with access structures that no longer reflect how people actually work.

Migrating those structures directly into Dynamics 365 suite can create unnecessary licensing cost and, increasingly, user-access risk.

The migration is therefore an opportunity to rationalize users, roles, processes, and licenses together.

What Should AX and CRM Customers Know About Dynamics 365 Pricing?

Moving from legacy Dynamics AX or CRM to Dynamics 365 also means moving onto a different licensing cost base.

Microsoft increased list pricing for several Dynamics 365 applications effective October 1, 2024. Dynamics 365 Finance and Supply Chain Management increased from $180 to $210 per user/month, while Sales Enterprise and Customer Service Enterprise increased from $95 to $105 per user/month. Pricing varies by geography, agreement, currency, and license combination.  

What this means

For AX and CRM customers, migration planning should not simply ask, “How many users do we have today?” It should determine:

• Which users genuinely need full Finance, SCM, Sales, or Customer Service licenses;  
• Which users can use lighter license types;  
• Where Base and Attach licensing applies;  
• Whether legacy roles are triggering unnecessary license requirements;  
• What the future Dynamics 365 subscription cost looks like against the total cost of maintaining the legacy environment.  

The goal is not to carry your existing user model into Dynamics 365. It is to redesign licensing around how people actually work.

Is Microsoft Ending Enterprise Agreements in 2026?

No. Microsoft Enterprise Agreements remain available in 2026. Microsoft continues to position EA for organizations requiring enterprise-wide licensing of cloud services and software over a minimum three-year period. 

However, organizations now have multiple purchasing routes, including Enterprise Agreement, Cloud Solution Provider (CSP), and Microsoft Customer Agreement for Enterprise (MCA-E). There are pros and cons for each of these models based on your organization user counts and structure. Choosing the right one is very important.

The more important renewal question is:

Is our current agreement still the right commercial model for what we plan to consume over the next few years?

What Changed in Enterprise Agreement Pricing?

A significant change took effect on November 1, 2025.

Microsoft standardized Online Services pricing across volume price levels A through D for Enterprise Agreements and Microsoft Products and Services Agreements. The change applies at the next agreement renewal or when customers purchase new Online Services not already included on their Customer Price Sheet. On-premises software pricing is excluded. 

For organizations accustomed to volume-based Online Services pricing, this can change renewal economics.

What should businesses do?

Before renewing an EA, model the cost of the existing license estate against available purchasing alternatives rather than assuming the previous agreement remains the best-value option.

EA vs. CSP vs. MCA-E: Which Model Should You Consider?

There is no universally better purchasing model. The right option depends on your Microsoft licensing estate, commercial requirements, support model, cloud strategy, and need for on-premises licensing. 

Microsoft describes CSP as an option for customers seeking a partner-managed purchasing and support relationship, while MCA-E is designed for enterprises requiring greater direct Microsoft engagement. (Microsoft)

The decision should begin with your business and licensing requirements, not with the assumption that every EA customer should move to CSP.

Your CSP choice matters, too.

CSP is not simply another way to purchase Microsoft licenses. The right partner can help you manage renewals, review changing license requirements, identify underused subscriptions, and make adjustments before you commit to another term.

Direct or Indirect CSP: Does It Matter?

The practical question is who actually owns your licensing advice, renewal planning, billing support, optimization, and Microsoft escalation. With a Direct CSP, you work directly with the Microsoft-authorized provider managing your subscriptions rather than through an additional distribution layer.

Korcomptenz is a Microsoft Direct CSP, combining licensing guidance with ongoing support across the Microsoft environment. 

How Do Microsoft NCE Commitment and Billing Terms Work?

CSP offers different subscription terms and billing options, but billing flexibility should not be confused with commitment flexibility.

Under New licensing rules, licenses can generally be increased during a subscription term. However, reductions for license-based subscriptions are typically limited to the first seven days after purchase, renewal, or adding licenses. After that window closes, reductions generally need to wait until the next applicable renewal window. 

There is also a cost implication to how annual subscriptions are billed. Since April 2025, annual-term subscriptions paid monthly generally carry a 5% price uplift compared with annual upfront billing across applicable Microsoft 365, Dynamics 365, Power Platform, and other Online Services subscriptions. 

What this means

Organizations should forecast headcount, user requirements, expected growth or contraction, and cash-flow priorities before committing to a subscription term.

What Changed in Microsoft 365 Pricing in July 2026?

Microsoft introduced global commercial pricing changes for selected Microsoft 365 products effective July 1, 2026. Existing customers transition to updated pricing at their next renewal after that date. 

Examples of Microsoft's U.S. list-price changes include:

• Microsoft 365 E3: $36 to $39
• Microsoft 365 E5: $57 to $60
• Office 365 E3: $23 to $26
• Office 365 E5: $38 to $41
• Microsoft 365 F3: $8 to $10

Prices vary by market, currency, agreement, and eligibility.

What this means

For organizations with hundreds or thousands of users, modest per-user increases can materially affect annual spend. Before renewing, identify licenses that are unused, overprovisioned, or assigned to users who do not require the full capabilities of their current SKU.

What Changed with Microsoft 365 and Teams Licensing?

Since November 1, 2025, Microsoft 365 and Office 365 Enterprise suites that include Teams have once again been available globally. Customers can choose between suites with Teams and without Teams, while standalone Teams options remain available. 

For renewal planning, the question is straightforward:

Does every user need the same Microsoft 365 and Teams combination?

Organizations should assess requirements by role, location, frontline-worker needs, security requirements, and existing collaboration tools rather than automatically renewing the same SKU across the workforce.

What Happens If Dynamics 365 Users Don't Have the Right Licenses?

For Dynamics 365 Finance, SCM and Commerce customers, licensing is increasingly becoming an access issue, not just a compliance issue.

Microsoft's Finance, SCM and Commerce license-consumption tools identify required licenses, assigned licenses, and users with missing licenses. Once per-user license validation applies, users without the required license can be blocked from signing in to Dynamics 365 applications. 

Organizations should review:

• Security roles assigned to users;
• Licenses required by those roles;
• Licenses actually assigned;
• Users with unnecessary or outdated access;
• Opportunities to rationalize security roles and licensing together.

What this means

A licensing gap can now become an operational issue. Organizations should reconcile security roles and license assignments before enforcement affects user access.

What this means for Dynamics AX customers

For organizations moving from Dynamics AX, license design should become part of migration design.

Before go-live, map Dynamics AX users and security roles to the Dynamics 365 capabilities they actually require. This can help prevent two common problems:

• Purchasing more Dynamics 365 licensing than users need;
• Carrying legacy Dynamics AX permissions into Dynamics 365 that trigger higher licensing requirements or create access issues.

A migration assessment should therefore examine users, roles, functionality, and licensing together, rather than treating licensing as a procurement activity after implementation.

How Is AI Changing Microsoft Licensing in 2026?

Microsoft 365 E7 and Microsoft Agent 365 became generally available on May 1, 2026. E7 brings together Microsoft 365 E5, Microsoft 365 Copilot, Microsoft Entra Suite, and Agent 365. 

For new standalone Agent 365 purchases beginning June 1, 2026, Microsoft also introduced prerequisite licensing requirements, including Microsoft 365 E5 for applicable enterprise customers or qualifying security and compliance suites. 

AI capacity is also changing.

Microsoft is progressively retiring AI Builder credits. Seeded AI Builder credits included with licenses such as Power Apps Premium, Power Automate Premium, and Dynamics 365 are scheduled to be removed on November 1, 2026. Organizations using these capabilities may need Copilot Credits or other applicable capacity to continue supporting AI Builder workloads. 

The licensing model is therefore moving beyond licenses per user toward a combination of:

user licenses + AI capabilities + agent governance + consumption capacity.

Don't Look at Licensing Separately from Your Microsoft Environment

The licenses you need change as your Microsoft environment changes. New users, changing roles, additional workloads, security requirements, cloud consumption, Dynamics 365 applications, and AI adoption can all affect licensing requirements.

That is why licensing and ongoing Microsoft support should not operate in isolation. When the same partner has visibility into both, changes in actual usage and business requirements can inform licensing decisions before they become unnecessary cost or compliance issues.

The question before renewal should therefore not only be “What should we renew?” It should also be “Do the licenses we are paying for still match how our business operates today?” 

What Should You Review Before Your Microsoft Renewal or AX Migration?

A 2026 licensing review should answer these questions:

1.What Microsoft agreement are we currently using, and is it still appropriate?

2.When does our agreement renew, and which 2026 pricing changes apply?

3.If we are still on Dynamics AX, what licenses, users, devices, and infrastructure are we supporting today?

4.How should existing Dynamics AX users map to Dynamics 365 Finance, SCM, Commerce, Team Members, or other license types?

5.Do legacy Dynamics AX security roles contain access that users no longer require?

6.Which Microsoft licenses are currently assigned but unused or overprovisioned?

7.Should subscriptions use monthly, annual, or eligible multi-year commitments?

8.Which Dynamics 365 users may require Base and Attach licensing?

9.Who genuinely needs Copilot, agent capabilities, or additional AI consumption capacity?

10.How could growth, restructuring, acquisitions, or divestitures change licensing demand during the next term?

11.How does our current AX/CRM user population map to today’s Dynamics 365 licensing and pricing model?

The objective should not simply be to negotiate a better unit price.

It should be to align licenses with actual users, roles, workloads, and future business requirements before committing to the next platform or agreement.

That review should continue between renewals. User roles, workloads, cloud consumption, and AI adoption change throughout the year, so ongoing license optimization can reduce the risk of discovering unnecessary spend only when the next renewal is due. 

Also read: SAP S/4HANA vs Dynamics 365 Licensing

Turn Your Next Microsoft Renewal Into an Optimization Opportunity

Microsoft licensing in 2026 now touches cost, compliance, user access, AI adoption, and long-term technology strategy. Renewing the existing estate without examining usage, roles, agreement structure, and emerging AI requirements can lock unnecessary cost and complexity into the next term.

As a Microsoft Solutions Partner and Direct CSP, Korcomptenz helps organizations assess their Microsoft environments, rationalize licensing, evaluate purchasing options, align Dynamics 365 access with entitlements, and prepare for evolving Microsoft 365 and AI requirements.

Know what to renew. What to right-size. And what changes when Dynamics AX moves to Dynamics 365.

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