Earlier this year, we published a blog outlining the upcoming price increases for commercial Microsoft 365 and Office 365 subscriptions, which will take effect from 1st July 2026. While many organisations are understandably focused on the additional licensing costs, there is some positive news accompanying Microsoft’s latest commercial suite updates. As part of these changes, Microsoft is increasing mailbox storage allowances for users on several popular Microsoft 365 Business plans.
Which Microsoft plans are affected?
Currently, users on Microsoft 365 Business plans receive a mailbox quota of 50 GB. From July 2026, Microsoft will increase this allowance to 100 GB per user for customers licensed with:
- Microsoft 365 Business Basic
- Microsoft 365 Business Standard
- Microsoft 365 Business Premium
This doubles the available mailbox storage for users on these plans, providing additional capacity for growing email archives and reducing the need for mailbox management.
When will the change take effect?
The storage increase will be applied automatically by Microsoft on licence renewal, after 1st July 2026. There is no migration, configuration, or administrative work required from your IT team to benefit from the expanded storage allowance.
For most organisations, the transition will be seamless, with users simply receiving the increased capacity as part of their existing Microsoft 365 subscription.
Potential cost savings
The increase is particularly welcome news for organisations that have purchased Exchange Online Plan 2 add-ons solely to provide users with 50GB additional mailbox storage.
Once the expanded mailbox storage has been rolled out, any additional licences that were used solely for an increased mailbox size will no longer be required. This creates an opportunity to review your Microsoft 365 licensing and potentially reduce costs by removing unnecessary add-ons.
As organisations assess the impact of the July 2026 price increases, reviewing mailbox licensing could help offset some of the additional expenditure and ensure you are only paying for the services you genuinely need.
Final thoughts
Although the Microsoft 365 price increases arriving in July 2026 will impact many organisations, the accompanying mailbox storage expansion is a welcome enhancement that delivers additional value to Microsoft 365 Business customers.
If your organisation currently uses Exchange Online Plan 2 add-ons or you’re unsure how these changes affect your licensing, now is a good time to review your Microsoft 365 estate. A licensing audit can help identify opportunities to optimise costs while ensuring users have access to the features and capacity they require.
If you’d like assistance reviewing your Microsoft 365 licences or understanding how these changes will affect your organisation, our team would be happy to help – you can contact us here.