By Massive IT · October 4, 2026
Microsoft publishes monthly updates to its cloud licensing and services. Several of the October 2026 changes directly affect how organizations buy, budget for, and manage Microsoft services. This summary covers what changed, who it affects, and what we recommend.
| Change | Effective | Who is affected | Action needed |
|---|---|---|---|
| Usage-based billing on by default for new Microsoft 365 Copilot Business licenses | December 1, 2026 | Organizations buying new Copilot Business licenses | Review spending limits before purchase |
| Promotional pricing on Defender Suite and Purview Suite for Business Premium | October 1, 2026 | Business Premium customers under 300 seats | Ask us whether your security upgrade qualifies |
| Business Central "28+" on-premises license key | October 1, 2026 | On-premises Business Central customers | Download a refreshed key before each upgrade |
1. Copilot Business: usage-based billing becomes the default
Microsoft has moved the date from November 2 to December 1, 2026. From then, new Microsoft 365 Copilot Business licenses, including bundles, will have pay-as-you-go usage-based billing turned on by default. This lets users reach usage-based experiences such as Copilot Cowork, Work IQ APIs, and GitHub Copilot Harness with less setup.
The default spending limit is 4,000 Copilot Credits per user per month, and administrators can adjust it. Microsoft's example: an organization with 100 Copilot Business users could consume up to 400,000 Copilot Credits a month under the default, billed on actual usage.
The change is not initially available in Australia, Belgium, Brazil, France, Germany, India, Italy, Korea, the Netherlands, Poland, and Spain.
Our recommendation
- Before buying new Copilot Business licenses, decide on a monthly spending limit that fits your budget rather than relying on the default.
- Agree who can approve higher limits and who reviews usage each month.
- Start with a defined pilot group and measure value before expanding.
2. Better pricing on Business Premium security add-ons
From October 1, 2026, Microsoft is offering promotional pricing on Microsoft Defender Suite for Business Premium and Microsoft Purview Suite for Business Premium for customers with fewer than 300 seats. Eligibility and terms are set by Microsoft.
If you already run Business Premium and have been considering stronger threat protection or data governance, this is a good time to review it. Contact us and we will check whether your organization qualifies.
3. Business Central on-premises license keys
From version 28, Business Central on-premises releases use a single "28+" license key instead of version-specific keys. The date you download the key determines which version it unlocks, so download a refreshed 28+ key before each version upgrade. Business Central online customers with Dual Use Rights can download keys from the Microsoft 365 admin center. Versions before 28 keep version-specific keys.
Next steps
If you are planning Copilot, considering Business Premium security upgrades, or upgrading Business Central, call us at (813) 518-5454 or email sales@massiveit.com and we will review what applies to your environment.
Source: Microsoft's October 2026 announcements (last updated October 1, 2026). Details may change; Microsoft's terms govern eligibility and pricing.