Most business software is now rented by the month or year. That makes budgeting predictable in theory, but prices rarely stand still.

What’s happening

– Microsoft’s July 1, 2026 price changes raised commercial Microsoft 365 list prices by roughly 5% to 43% depending on the plan, while adding bundled features like Copilot Chat.

– AI features are being bundled into base plans or sold as add-ons, giving vendors a reason to raise prices.

– Annual escalators in contracts increase prices each renewal.

– Seat creep: licenses accumulate faster than they’re removed.

– Hardware and cloud costs are also rising due to the memory shortage and infrastructure demand, adding to overall IT spending.

Why it matters

Subscription costs are now one of the largest and fastest-growing parts of most IT budgets, and they are easy to neglect.

How to control them

1. Inventory every subscription, including departmental and credit-card purchases

2. Assign an owner to each

3. Track renewal dates, and review 60 to 90 days ahead

4. Remove unused licenses and right-size plans

5. Consolidate overlapping tools

6. Negotiate: ask about multi-year pricing, volume discounts, and price caps

7. Compare billing options: annual commitments often cost less than monthly, but reduce flexibility

8. Watch auto-renewals and notice periods

9. Evaluate what’s bundled before buying add-ons

10. Include license removal in offboarding

Think about total value

The cheapest tool isn’t always the best value. Consider support, integration, security, and the cost of switching.

Budget with a cushion

Plan for annual increases of several percent, and larger changes when vendors reprice.

DBR Soft’s licensing management service can track, right-size, and negotiate your subscriptions. Contact us for more information.