Summary

• Microsoft 365 is getting a meaningful upgrade – and a quick licence review could mean you come out ahead on cost
• A simple audit before your next renewal is often all it takes to find real savings
• Getting cyber certified is more straightforward than most businesses expect, and it opens genuine commercial doors

Planning your IT investment for FY27: what small businesses need to know

The start of a new financial year is a great opportunity to make sure your technology is working as hard as you are. A few easy conversations now can save money, open doors and set you up well for the year ahead.

What is changing in FY27 that affects your IT spend?

From 1 July 2026, Microsoft 365 prices will rise for many commercial plans, but Microsoft is also adding more AI, security, and device-management features to core subscriptions. For customers already paying for some of those capabilities separately, the net increase may be smaller than the headline price rise suggests.

The businesses that come out ahead are the ones that take a little time to understand what they’re actually on and what’s changing for their specific plan. Some will find the new inclusions more than offset the price adjustment. Others may find they’re on a plan that no longer fits their size or how they work.

One conversation with your IT partner before your next renewal is usually all it takes. You’ll walk away knowing exactly where you stand, what’s changing and whether there’s anything worth doing before July.

Are you paying for licences your business is actually using?

A licence review is a health check on what you have – what’s active, what isn’t and whether people are on the right plan for their role.

What tends to come up: staff who left months ago and still have active accounts, people on plans with features their day-to-day role doesn’t need, and security or management tools being paid for separately that are now bundled into the core licence. None of these are unusual. They’re just easy to miss when licences renew automatically and nobody’s looking.

Going into your renewal with this picture in hand puts you in a much stronger position. You’re choosing your plan deliberately, not rolling over by default. It’s a small shift in approach that can make a meaningful difference to what you spend across the year.

What return can cyber governance investment deliver in FY27?

Alongside your licence review and renewal decisions, FY27 is also a natural moment to consider your cyber security position. Investing in certification is not a separate conversation from IT cost – it is part of the same picture, and for many businesses the commercial return is more direct than they expect.

The SMB1001 framework is built specifically for small to medium businesses, and provides a practical, achievable set of cyber security controls designed around what actually matters day to day. SMB1001 is structured in tiers, so you start at a level that makes sense for where you are now and build from there. It’s more straightforward and affordable than most businesses expect, and you don’t need a dedicated IT team to get there.

Once you hold SMB1001 certification, it starts doing commercial work for you. Cyber insurers recognise it as evidence of security maturity, which can translate to better coverage terms and more straightforward renewals. Larger enterprise clients and government procurement teams increasingly want to see a recognised framework before they’ll bring a new supplier on board. Having certification documented and ready removes a barrier that many businesses don’t even realise is slowing them down.

It also gives your leadership team something concrete to point to. When a client asks how you manage cyber risk, or when the question comes up in a board meeting, certification is a real answer. That confidence has commercial value that’s easy to underestimate until you have it.

Certification is an investment: there is the initial assessment, any gap remediation and an annual renewal. But the returns are tangible – tender eligibility, stronger insurance positioning and documented governance that protects leadership. For most businesses working through the numbers, the return case becomes clear quickly once the commercial outcomes are on the table alongside the cost.

What to do before 30 June: your FY27 IT planning checklist

• Ask your IT partner for a licence utilisation report
• Check your Microsoft 365 renewal date and whether early renewal makes sense
• Find out which Microsoft plan you’re on and what’s changing for it in July
• Have a 15-minute conversation about SMB1001 and where you currently sit
• Book a planning session with your IT partner before the end of June

The IT Agency helps keep businesses connected, protected, productive and supported through cyber governance, compliance, AI and managed IT solutions. As a Microsoft Solutions Partner and SMB1001 Gold Certified MSP, we help businesses simplify IT, implement technology securely and strengthen resilience. Talk to us about building a more secure and future-ready business.

FAQ

When do Microsoft 365 price increases take effect for my business?

New pricing applies from 1 July 2026, with existing customers moving to new prices at their next renewal after that date. Microsoft has committed to providing at least 30 days’ notice before changes take effect on any individual account. If your renewal falls before 1 July 2026, you can lock in current pricing for the full term of your next agreement.

Should I renew my Microsoft licences early to avoid the price increase?

Early renewal can lock in current pricing, but only makes sense when your current licence mix reflects what your business actually needs. Renewing early on unused or mismatched licences extends their cost. A structured licence review before any renewal decision is the right first step and The IT Agency can help with that assessment.

How does SMB1001 certification fit into an IT budget conversation?

Certification is an investment: assessment, any gap remediation and annual renewal. It provides returns in the form of tender eligibility, insurance positioning and documented governance that protects leadership. For most businesses working through the numbers, the return case is clear once the commercial outcomes are on the table alongside the cost.

What is the right time of year to review IT investment?

EOFY is the strongest trigger because budget decisions are being made, contracts are coming up for renewal and leadership attention is on the year ahead. A structured review in May or June gives you enough time to act on the findings before commitments are locked in for FY27.

Sources

https://www.microsoft.com/en-us/licensing/news/2026-M365-Packaging-Pricing-Updates-FAQ
https://www.microsoft.com/en-us/microsoft-365/blog/2025/12/04/advancing-microsoft-365-new-capabilities-and-pricing-update/