
060 - Microsoft 365 Licensing in 2026: What Changed and What It Costs You
Microsoft has no intention of making 365 licensing simpler, because the complexity is what gives them room to negotiate. Andy Syrewicze gets Paul Schnackenburg back on the show to map Microsoft 365 licensing as it actually stands in 2026. The July price increases and the one SKU that did not move, the Defender and Purview add-ons that let a 300 seat shop buy E5 capability without buying E5, the features that left E5 for the Entra Suite, and E7 at $99 per user per month with Agent 365 attached. Paul teaches this to Microsoft partners for a living, and he says the part out loud that most people only suspect. Chapters: 00:00:00 - Cold Open: You Need a PhD for 365 Licensing 00:01:00 - Welcome and Show Plugs 00:07:11 - News React: The iPhone Duo and V1 Hardware 00:12:07 - News React: Companies Throttling Employee AI Use 00:13:59 - Nerd Hour: Andy's Claude Code Data Pipeline 00:20:15 - Nerd Hour: Cloudflare and Paying for AI Crawls 00:22:35 - Main Topic: Making the Imaginary Lawyers Happy 00:23:38 - Business, Enterprise, and the Office 365 Leftovers 00:25:51 - Business SKUs and the July Price Increase 00:28:14 - Why Paul Treats Business Premium as the Floor 00:28:42 - The 15 Person Firm He Put on E5 00:30:31 - Defender and Purview Add-Ons for Business Premium 00:32:47 - From the Outside, This Sounds Like Lunacy 00:33:41 - Licensing Is Now a Quarterly Job 00:34:58 - Mixing Business and Enterprise Past 300 Seats 00:36:29 - What Separates Basic, Standard, and Premium 00:37:18 - Conditional Access Is the Real Upgrade Trigger 00:38:33 - M365 Maps and the Periodic Table 00:40:07 - The No Teams SKUs and EU Antitrust 00:41:39 - Paying for the Top SKU and Turning Nothing On 00:42:17 - Third Party Security Tools vs the Microsoft Stack 00:47:17 - Thirty Portals and Nobody Can Cover Them All 00:50:04 - Tony Redmond: Too Complex for Humans to Understand 00:51:36 - The Intune Suite Folds Into E3 and E5 00:55:22 - The Add-On Maze and What Purview Gives You 00:59:10 - E5 Is Not the Kitchen Sink Anymore 01:01:10 - The Entra Suite: Governance and Private Access 01:03:02 - E7, Agent 365, and Agent ID 01:05:37 - Purview and Defender Watching Your Agents 01:07:12 - Who Is Running OpenClaw in Your Tenant? 01:07:59 - E7 at $99 Per User Per Month 01:09:07 - The Complexity Is Intentional 01:10:06 - Do This Monday: Audit Your Add-Ons and Renewal Date 01:11:19 - The New Conditional Access Overage Warning 01:12:12 - The One License Myth and Microsoft's Telemetry 01:14:53 - Wrap Up and Outro Resources / Show Notes: - Tony Redmond, Is Microsoft 365 Too Complex for Humans to Understand: https://365forall.com/article/is-microsoft-365-too-complex-for-humans-to-understand-blog-by-tony-redmond - Office 365 for IT Pros, the subscription book Paul recommends: https://office365itpros.com - M365 Maps by Aaron Dinnage, visual SKU and feature breakdowns: https://m365maps.com - jumpto365, the Periodic Table of Microsoft 365: https://www.jumpto365.com - Microsoft Learn, Microsoft 365 and Office 365 service descriptions: https://learn.microsoft.com/en-us/office365/servicedescriptions/office-365-service-descriptions-technet-library - Microsoft, Business Basic, Standard and Premium comparison: https://aka.ms/M365BusinessPlans - 404 Media, companies are throttling employee AI use because it is too expensive: https://www.404media.co/companies-are-throttling-employees-ai-use-because-its-too-expensive/ - Cloudflare, new AI traffic options for search, agent and training bots: https://blog.cloudflare.com/content-independence-day-ai-options/ - SysAdmin Weekly: https://www.sysadminweekly.com - SysAdmin Weekly Newsletter: https://newsletter.sysadminweekly.com - AndyOnTech: https://www.andyontech.com - Project Runspace: https://www.projectrunspace.org - GitHub Discussions: https://github.com/ProjectRunspace/sysadmin-weekly/discussions