Microsoft Licensing Newsletter – February 2026
Exchange Web Services (EWS) – Access Changes for Frontline Licences
Microsoft continues its retirement plans for Exchange Web Services (EWS). From 1 July 2026, EWS access will be blocked for users licensed only with the following SKUs:
- Exchange Online Kiosk
- Microsoft 365 / Office 365 F1
- Microsoft 365 / Office 365 F3
To retain EWS connectivity (for example, where applications are integrated via EWS), users will require a licence that includes EWS rights, such as:
- Exchange Online Plan 1 or Plan 2
- Microsoft 365 / Office 365 E3 or E5
What this means for you
- Review any tools or systems still using EWS instead of Microsoft Graph.
- Assess all users on Kiosk, F1, or F3 licences who may rely on EWS‑based workflows.
- Plan a migration to Graph or uplift licensing well before July 2026.
Official Microsoft article:
https://techcommunity.microsoft.com/blog/exchange/update-to-ews-access-for-kiosk--frontline-worker-licensed-users/4474299
Standalone SharePoint Online & OneDrive – Retirement Timeline
Microsoft is retiring standalone SharePoint Online and OneDrive plans (formerly “OneDrive for Business”). Key dates:
- Still available within Microsoft 365 suites.
- No new standalone purchases after 31 May 2026.
- Renewals allowed until January 2027, after which they remain only on existing contracts.
What this means for you
- For renewals extending beyond Jan 2027, consider moving to a Microsoft 365 suite (e.g., Business Premium, E3, E5).
- Identify any areas still dependent on standalone SharePoint/OneDrive plans.
Dynamics 365 ERP – Licence Assignment Changes (Effective 15 January 2026)
Microsoft has updated how user licences must be assigned across certain Dynamics 365 ERP workloads. The change took effect on 15 January 2026.
Microsoft has released supporting guidance and held partner training to help organisations transition.
What this means for you
- Use the updated Microsoft playbooks and guidance to confirm your configuration.
- Validate that Dynamics 365 ERP user licence assignments comply with the new rules.
Dataverse Storage Entitlement Increases
Microsoft has increased the default Dataverse Database storage entitlements for Power Platform and Dynamics 365, giving organisations more built‑in capacity to support app development, automation, and business data growth. These changes have been in effect since December 2025.
What’s Changed?
- Power Platform environments now include 10 GB of Dataverse Database capacity by default.
- Dynamics 365 customers now receive 20 GB of Dataverse Database capacity as standard.
What This Means for You
- Customers scaling Power Platform or Dynamics 365 workloads now have greater flexibility to grow without additional cost.
- You may notice additional storage capacity available automatically, without any licensing changes.
- Organisations approaching capacity limits may find that planned storage add‑ons are no longer immediately required.
Power Apps Per App Plan – End of Sale
Microsoft has now fully retired the Power Apps Per App Plan:
- Removed from price lists on 2 January 2026; no longer available for new purchases.
- CSP and EA customers can continue renewing existing licences.
- MPSA customers can use licences only until their agreement expires.
- Per App PAYG remains available, and Power Apps Premium offers the modern per‑user alternative.
What this means for you
- For new app scenarios, choose Premium or Per App PAYG.
- If you still hold Per App licences, plan an upgrade path—especially under MPSA.
Official article:
Power Apps per app end of sale – Microsoft Licensing News
Microsoft Defender for Office 365 – Tenant-Level Licensing Reminder
A recent clarification reinforces that any user benefiting from Defender for Office 365 capabilities must be licensed, including:
- Users accessing protected mailboxes (shared or personal)
- Users of SharePoint, OneDrive, or Teams where Safe Attachments is enabled
- Users using Safe Links in Microsoft 365 Apps or Teams
Even if policies appear tightly scoped, many security features apply tenant‑wide — requiring appropriate licence coverage.
What this means for you
- Audit Safe Attachment and Safe Links usage across the tenant.
- Ensure all protected users hold appropriate Defender for Office 365 licences (P1/P2 or included in suites).
How we can Help
With significant changes happening across Microsoft 365, Dynamics 365, Power Platform, and CSP commercial terms, it’s a good time to engage with your aligned Microsoft Licensing Specialist. They can support you with:
- Updating CSP processes to accommodate changing commercial rules such as Extended Service Terms (EST).
- Reviewing licence assignments and dependencies (particularly EWS and Defender for Office 365).
- Planning for the retirement of Power Apps Per App and standalone SharePoint/OneDrive plans.
