TL;DR: Microsoft raised Microsoft 365 prices on July 1, 2026, and by August 1 finished rolling packaging changes that add security capabilities to business and enterprise plans, including URL time-of-click protection for Business Basic and Standard and Defender for Office 365 Plan 1 for Office 365 E3 and Microsoft 365 E3. The catch is that the protection Microsoft turns on by default is a deliberately minimal baseline. The stronger, tunable email security you are now paying for, including impersonation-based anti-phishing, only takes effect once an administrator configures it. For a North Carolina small business, the opportunity is to stop leaving that value on the table and configure the anti-phishing and link-scanning capabilities you already own.
Key takeaway: A license is not a fully-configured control. Microsoft enables a minimal baseline automatically, but the meaningful, tunable email security you are paying for, including impersonation protection, is unlocked only when someone configures and tunes it.
Paying more for Microsoft 365 in 2026 and not sure what security you now have? Contact Preferred Data Corporation at (336) 886-3282 for a Microsoft 365 security and license review. BBB A+ rated, serving High Point, Greensboro, Winston-Salem, Charlotte, Raleigh, and the Piedmont Triad since 1987.
What changed in Microsoft 365 in July and August 2026?
Microsoft increased Microsoft 365 prices effective July 1, 2026, and completed a set of packaging changes by August 1 that fold additional security and productivity capabilities into existing plans. Per Microsoft's 2026 packaging and pricing update, the changes for small and midsize businesses include real additions, not just a higher bill.
The concrete moves that matter most for a small business:
- Prices rose on the most common small-business plans. Microsoft 365 Business Basic increased about 16% (from $6.00 to $7.00 per user per month) and Business Standard about 12% (from $12.50 to $14.00), while Business Premium held at $22.00.
- Business Basic and Standard gained email link protection. These plans added URL time-of-click protection, which re-checks links at the moment a user clicks them in Outlook and Office apps, plus Copilot Chat enhancements and Copilot Chat analytics.
- Enterprise E3 plans picked up Defender for Office 365 Plan 1. Office 365 E3 and Microsoft 365 E3 now include Defender for Office 365 Plan 1, along with Intune Remote Help, Intune Advanced Analytics, and Intune Plan 2. Business Basic, Standard, and Premium also each receive 50 GB of additional mailbox storage.
The through-line: you are paying more, and in exchange you now have more security to turn on.
Do these Microsoft 365 security features work automatically?
Only partly, and that partial baseline is exactly where small businesses get a false sense of safety. For tenants licensed for Defender for Office 365, Microsoft automatically applies a Built-in Protection preset that gives baseline Safe Links and Safe Attachments coverage to recipients not covered by another policy, and a default anti-phishing policy applies as well. That baseline is real, but it is intentionally minimal, cannot be tuned, and leaves out the controls that stop targeted attacks, most notably impersonation protection. The stronger policies need to be created and tuned by an administrator.
Consider what Defender for Office 365 Plan 1 provides once you configure it beyond that default baseline, per Microsoft's service description:
- Safe Links rewrites and checks URLs in email and Office documents to block known-malicious destinations at click time.
- Safe Attachments detonates attachments in a sandbox before delivery to catch malware that signature-based filters miss.
- Anti-phishing protection uses impersonation and spoof intelligence to catch business email compromise attempts that a basic spam filter waves through.
- Real-time detections give administrators visibility into threats as they hit the tenant.
Key takeaway: Business Premium has long included Defender for Office 365 Plan 1, and many E3 tenants now do too. If those policies were never built, you have been paying for enterprise-grade email security while running on defaults.
Not sure whether your Safe Links and anti-phishing policies are actually configured? Call Preferred Data at (336) 886-3282 or explore our Cybersecurity and Managed IT services.
Why does leaving Microsoft 365 on its default baseline matter?
Because email is still the front door for the attacks that hurt small businesses most, and the default baseline stops the obvious threats but not the targeted ones. Phishing and business email compromise remain among the top causes of small-business loss, and the impersonation protection that catches business email compromise is exactly what the default anti-phishing policy leaves off. Tuning these policies is the difference between a posture that looks covered and one that actually is.
Three points make configuration the highest-return work you can do this quarter:
- The threat is targeted at exactly the gap the default leaves. Phishing and email-based social engineering consistently rank as the leading cybersecurity risk small business owners cite, and the wire-fraud and executive-impersonation attempts that do the most damage are precisely what the untuned default policy does not catch.
- The controls are already paid for. After the July price increase, the marginal cost of building and tuning Safe Links, Safe Attachments, and impersonation-aware anti-phishing policies is zero. You are choosing between using the protection you own or leaving it on minimal defaults.
- Copilot Chat now needs governance too. With Copilot Chat enhancements gaining inbox and calendar awareness plus access to Word, Excel, and PowerPoint agents, the added admin controls and analytics are not optional niceties, they are how you keep AI use inside policy.
Default baseline versus configured and managed Microsoft 365
| Factor | Default baseline only | Configured and managed |
|---|---|---|
| Safe Links / Safe Attachments | Minimal built-in preset | Enabled and tuned to your risk |
| Anti-phishing policy | Default policy, no impersonation protection | Impersonation and spoof rules applied |
| URL time-of-click protection | Newly available, unverified | Confirmed active in Outlook and Office |
| Copilot Chat controls | Unmanaged | Admin controls and analytics on |
| Threat visibility | Baseline only | Real-time detections monitored |
| Return on the price increase | Higher bill, minimal baseline | Higher bill plus tuned protection |
Ready to turn on the security you already pay for? Call (336) 886-3282 or learn about our Managed IT Services.
What should an NC small business do about this now?
Run a short Microsoft 365 security and license review, then enable and tune the protections your plan includes. This is a fast, high-value exercise because most of the capability is already licensed after the 2026 changes. The work is configuration and governance, not new spending.
A practical sequence for a North Carolina small business:
- Confirm what your plan now includes. Identify whether you are on Business Basic, Standard, Premium, or an E3 plan, and what security each now carries after the July and August updates.
- Build and apply email security policies. Configure Safe Links, Safe Attachments, and anti-phishing where included, and verify URL time-of-click protection is active on Business Basic and Standard.
- Tune to your real risk. Set impersonation protection for your executives and finance staff, the people most targeted by wire-fraud attempts.
- Govern Copilot Chat. Turn on the admin controls and review the usage analytics so AI adoption stays inside an acceptable-use policy.
- Monitor and review. Watch real-time detections and revisit policies as threats and your team change.
Done well, this converts a price increase you cannot avoid into a genuine security upgrade you can measure.
How does Preferred Data help NC businesses get more from Microsoft 365?
Preferred Data Corporation has supported North Carolina businesses on Microsoft platforms for decades, and configuration is where we turn a Microsoft 365 subscription into real protection. Through our Managed IT and Cybersecurity services, we review exactly what your plans now include after the 2026 changes, build and tune Safe Links, Safe Attachments, and anti-phishing policies, verify time-of-click protection, and set up Copilot Chat governance so AI use stays inside policy. We also right-size licensing so you are not paying for capacity or tiers you do not need.
Because we are local, on-site within 200 miles of High Point, we can sit with your team, map the configuration to how your business actually works, and keep it maintained as Microsoft continues to change plans.
Get a Microsoft 365 security and license review. Contact Preferred Data Corporation at (336) 886-3282. We deliver Managed IT, Cybersecurity, and Cloud Solutions for small businesses and manufacturers across the Piedmont Triad. Serving the region since 1987, BBB A+ rated.
Frequently Asked Questions
What email security did Microsoft add to small business plans in 2026?
As part of the July and August 2026 packaging changes, Microsoft 365 Business Basic and Standard gained URL time-of-click protection, which re-checks links when a user clicks them in Outlook and Office apps. Business Basic, Standard, and Premium also each received 50 GB of additional mailbox storage, and enterprise Office 365 E3 and Microsoft 365 E3 plans now include Defender for Office 365 Plan 1.
Does Microsoft 365 turn on this security automatically?
Only partly. For Defender-licensed tenants, Microsoft applies a minimal Built-in Protection preset automatically, so baseline Safe Links and Safe Attachments coverage and a default anti-phishing policy are on. That baseline cannot be tuned and does not include impersonation protection, so the stronger policies that stop targeted attacks such as business email compromise must be created and tuned by an administrator.
How much did Microsoft 365 prices increase in 2026?
For common small-business plans, Microsoft 365 Business Basic rose about 16% (from $6.00 to $7.00 per user per month) and Business Standard about 12% (from $12.50 to $14.00), effective July 1, 2026. Business Premium held at $22.00. Existing customers move to new pricing at their next renewal after July 1.
What is Defender for Office 365 Plan 1?
Defender for Office 365 Plan 1 is Microsoft's email and collaboration security add-on that provides Safe Links, Safe Attachments, anti-phishing protection, and real-time detections. It is included in Microsoft 365 Business Premium and, as of the 2026 changes, in Office 365 E3 and Microsoft 365 E3, but it must be configured to take effect.
We are on Business Premium. Do we already have this?
Very likely yes. Business Premium has long included Defender for Office 365 Plan 1, so the real question is whether the Safe Links, Safe Attachments, and anti-phishing policies were ever built and tuned. Many small businesses hold the license but run on defaults, which is exactly the gap a security review closes.
Can Preferred Data configure our Microsoft 365 security?
Yes. We review what your plans now include, build and tune the email security policies, verify time-of-click protection, set up Copilot Chat governance, and right-size your licensing. We serve small businesses and manufacturers across High Point, Greensboro, Charlotte, Raleigh, and the greater Piedmont Triad.