DVS MICROSOFT LICENSE CHANGES 2026: WHY WAITING AND RENEWING EARLY IS NOT A STRATEGY
The bill is coming. And for many public-sector organisations it will be considera-bly higher than expected.
A widespread misconception persists: that renewing your contract early protects you from the Microsoft price changes in 2026. That only holds true within a narrow window. Outside the special period from 1 November 2025 to 31 October 2026, the current market price list ap-plies, regardless of how early you sign. An early renewal buys no time. Other measures are needed. Microsoft has fundamentally overhauled its Enterprise Agreement pricing structure, and the public sector is squarely in focus. Two changes arrive at the same time: the removal of Level D and a direct price increase as of 1 July 2026. Together, these can raise total costs for indi-vidual organisations by up to 25%. The crucial question is not when you renew, but what you optimise beforehand.
WHAT IS CHANGING
Public-sector organisations affiliated with the DVS framework agreement benefited for years from a structural advantage within the Enterprise Agreement: Level D, the lowest price tier for the government sector. That era is over. Since November 2025, Microsoft has harmonised all online services prices to Level A, the commercial standard rate. For cloud services such as Microsoft 365, no exceptions will apply from 1 November 2026. In addition, a direct price increase takes effect on 1 July 2026 that explicitly affects the Swiss market.
THE RULES FOR RENEWALS
Two key principles apply to renewal planning:
- Rule 1 (special arrangement): All renewals with a renewal date between 1 November 2025 and 31 October 2026 still receive the October 2025 price list. The renewal date is decisive, not the date of signature.
- Rule 2 (standard): Outside this special period, the price list in effect at the time of signature applies. In addition, there is an early-commit discount (1%) and a late-renewal surcharge (–3%).
Important: If a customer signs a renewal on 17 September 2026, for example, effective 1 Feb-ruary 2027, the September 2026 price list applies plus a 1% early-commitment discount, not the October 2025 price list. The renewal falls outside the agreed special period. An early renewal therefore does not solve the problem.
WHAT TO DO NOW
The window for action is open but not indefinitely:
- Review actual usage. Over-licensing is widespread and costly. Before renewing, un-derstand which licences are genuinely being used.
- Optimise before the price increase. Reducing unnecessary licences now locks in sav-ings at the current price level.
- Use features already included. Defender, Intune and other security features are in-cluded in higher M365 plans. If you pay separately for third-party solutions, you may have consolidation potential.
- Longer term: build a structured M365 FinOps practice. License optimisation is not a one-off project; it is an ongoing discipline.
Conclusion
Microsoft's 2026 changes are not routine price adjustments. They mark a structural shift. Those who act now, rather than waiting until renewal, hold a clear advantage.