July 2, 2026
WHAT'S HAPPENING: Copilot Cowork is Generally Available
WHEN: June 16, 2026
Copilot Cowork is now generally available, and its licensing model pairs the Microsoft 365 Copilot user-based subscription with usage based billing in Copilot Credits. The USL gives users the full Microsoft 365 Copilot experience, while Cowork adds an agentic system for complex, long running, multi tool tasks that are billed per task. Each Cowork task consumes Copilot Credits based on model use, context retrieval, tool calls, and runtime. Customers can choose a Pay-As-You-Go option for Copilot Credits or commit to discounted volume with a prepaid plan.
You can review the official announcement for more details and try out Microsoft’s Copilot Credit Calculator here.
WHAT'S HAPPENING: Work IQ API is Generally Available
WHEN: June 16, 2026
Work IQ API is now available under a consumption‑based billing model using Copilot Credits, the same unified currency used across Copilot Cowork, Copilot Studio and other Microsoft AI services. There is no separate Work IQ license or SKU. Your Copilot Credit balance simply gets drawn down whenever your agents or apps call Work IQ APIs, whether built internally or via third‑party agents grounding into your Microsoft 365 data. Work IQ billing includes a variable charge for query‑style operations (grounding, retrieval, reasoning) and a static charge of 0.1 credits per Tool API call.
WHAT'S HAPPENING: Microsoft Scout Available to Frontier enrolled customers
WHEN: June 2, 2026
Microsoft has introduced Microsoft Scout; a new type of always-on autonomous AI agent called an Autopilot. This desktop application learns your work habits over time by analyzing your Microsoft 365 data. It is now in private preview and offered as an experimental Frontier release. Access requires Frontier enrollment, Intune policy configuration, and an opt‑in attestation, after which eligible users (including those with GitHub Copilot licenses) can install the early desktop experience. All of Scout’s intelligence is powered by Work IQ, so any grounding, retrieval, or reasoning Scout performs is billed through Copilot Credits, but Scout itself has no separate SKU or license. Additional documentation is available here.
WHAT'S HAPPENING: Windows 365 for Agents in public preview (US based customers only)
WHEN: May 1, 2026
Windows 365 for Agents is a US‑only public preview that gives each AI agent its own Intune‑managed Cloud PC, billed via Azure subscription. Access requires Agent 365, Intune, and an Azure subscription. Organizations can choose on‑demand Cloud PCs (spin up only when an agent needs them, pay‑as‑you‑go) or always‑available Cloud PCs (instantly ready, billed monthly per Cloud PC plus usage).
WHAT'S HAPPENING: Updated Licensing Prerequisites for Agent 365
WHEN: June 1, 2026
Microsoft has updated the licensing prerequisites for Agent 365, effective June 1. Enterprise level users need Microsoft 365 E5, frontline users need Defender + Purview (F5), and SMB customers require Microsoft 365 Business Premium. Customers without these prerequisites won’t get core Agent 365 capabilities like Purview data protection, Defender threat protection, Intune device/agent controls, or Entra identity governance. Microsoft 365 E7 customers are already covered since the E7 suite includes all features of E5, as well as Agent 365, Copilot, and the Entra Suite.
WHAT'S HAPPENING: SQL Server 2016 Extended Security Updates Available
WHEN: July 14, 2026
Microsoft has announced changes to the Extended Security Updates (ESUs) for SQL Server 2016 as it nears its End of Support on July 14, 2026. ESUs are optional licenses that extend support by providing critical updates for an additional three years for both on-premises and cloud workloads. These can be purchased as one-year licenses or through a Pay-as-You-Go meter via Azure Arc.
Unlike SQL Server 2014, where migrating workloads to Azure removed ESU costs, SQL Server 2016 ESUs will be chargeable across all deployment options, including Azure VMs and Azure Stack. The ESUs for SQL Server 2016 are now available and will provide coverage until July 2029.
You can read more here.
WHAT'S HAPPENING: Hotpatching is now free for Azure Arc-Enabled Windows Server 2025 Servers
WHEN: May 19, 2026
Microsoft has announced that hotpatching for Windows Server 2025 is now free for Azure Arc-enabled servers. Previously, this service was free only for servers running directly in Azure, while Azure Arc-enabled servers were charged $1.50 per core per month. However, as of May 15, 2026, these costs have been discontinued for all servers currently enrolled in Hotpatch. More details and FAQs are available here.
WHAT'S HAPPENING: Introduction of GitHub Pre-Purchase Plans
WHEN: June 18, 2026
GitHub Pre‑Purchase plans allow you to buy discounted Commit Units upfront in Azure and use them to automatically pay down your GitHub usage for a year. One CU covers $1 USD of GitHub retail cost, and the plan applies across GitHub Enterprise, Copilot, Advanced Security, Actions, Codespaces, Packages, LFS, and GitHub AI overage. You must scope the plan to the Azure subscription your GitHub org bills to. When there is overlap in benefit coverage, Microsoft applies them in the following order: GitHub AI Credits, GitHub Pre‑Purchase, then Microsoft Agent Pre‑Purchase. Note that Pre-Purchase Plan discounts don't combine with other discounts you might have. If you have additional discounts, the pre-purchase plan discount is applied independently, which may result in a lower effective discount rate than the listed tier percentage. All purchases are final and cannot be cancelled or exchanged.
WHAT'S HAPPENING: OneDrive Extra Storage Available for Purchase
WHEN: June 1, 2026
Microsoft has introduced new Extra Storage capacity packs for OneDrive, allowing users to increase their storage up to 25 TB. These add-on licenses come in pack sizes of 100 GB, 500 GB, and from 1 TB up to 6 TB in 1 TB increments, which can be combined to reach the desired storage amount. They can also be reassigned between users as needed. This update coincides with the retirement of the standalone OneDrive plan and its SharePoint counterpart.
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