Microsoft 365 Changes Coming in 2026: Key Teams, SharePoint and Licensing Updates for IT Admins
For those familiar with it, you’ll know all too well just how Microsoft 365 rarely changes in one neat update.
Instead, Microsoft have a habit of introducing new features, retiring older services, adjusting licensing models, and adding security controls gradually throughout the year. Individually, many of these updates seem - and for all intents and purposes of a day-to-day usage, are - minor. Collectively, they can have a significant impact on how organisations manage collaboration, security, compliance, and costs.
2026 should bring several important changes across Microsoft Teams, SharePoint, OneDrive, Purview, Entra and Microsoft 365 licensing.
For SMEs and mid-sized organisations, the challenge is not tracking every Microsoft roadmap announcement, but in identifying which changes could affect users, business processes, security controls, and budgets before they become a problem.
Here are the Microsoft 365 updates worth preparing for.
What Are the Biggest Microsoft 365 Changes Coming in 2026?
The most significant updates include:
Teams Live Events retiring on the 30th June, 2026
Migration to Teams Town Halls for large-scale virtual events
Retirement of standalone SharePoint Online and OneDrive for Business plans
Continued expansion of Microsoft Purview governance capabilities
Additional Microsoft Entra security controls
Ongoing Microsoft 365 licensing consolidation
While not every update requires immediate action, several do.
Key Dates:
3 Feb 2026: Teams Live Events can no longer be scheduled beyond the retirement date
30 Jun 2026: Teams Live Events retire
Jun 2026: Standalone SharePoint and OneDrive sales end
Jan 2027: Standalone SharePoint and OneDrive renewals end
Dec 2029: Standalone SharePoint and OneDrive fully retire
Teams Live Events Is Retiring in June 2026
One of the most important Teams changes in 2026 is the retirement of Teams Live Events.
Microsoft has confirmed that Teams Live Events and associated Microsoft Graph APIs will retire on 30 June 2026. Organisations that are currently using Live Events for webinars, company broadcasts, training sessions, or customer-facing events will need to move to alternative solutions.
Microsoft has also confirmed that from February 2026, organisations will no longer be able to schedule new Live Events beyond the retirement date.
For many businesses, this will not simply be a technical change. Live Events often sit at the centre of internal communications, training programmes, leadership updates, and customer engagement activities.
The organisations that experience the smoothest transition will be the ones that begin planning early rather than waiting until the final months before retirement.
What Is Replacing Teams Live Events?
Microsoft's preferred replacement is Teams Town Halls.
Town Halls are designed to support large-scale virtual events while providing a more modern experience for organisers and attendees. Microsoft is also directing developers towards replacement APIs that support event automation and management.
If your organisation regularly runs webinars, all-hands meetings, training events, or customer presentations, now is a good time to review existing processes and identify any dependencies on Teams Live Events.
Consider reviewing:
Scheduled events beyond mid-2026
Internal communications programmes
Webinar processes
Event-related integrations
User training requirements
A migration project is rarely urgent until it suddenly becomes urgent.
Microsoft Is Retiring Standalone SharePoint Online and OneDrive Plans
Another significant change affects Microsoft licensing, which is almost always a confusing topic.
Earlier this year, Microsoft announced the retirement of specific (and exclusively) standalone SharePoint Online and OneDrive for Business plans. New customer sales end in June 2026, renewals stop after January 2027, and the products will ultimately be retired in December 2029.
If you’ve read this and thought ‘all our data is in SharePoint?!’, don’t panic. The underlying SharePoint and OneDrive services aren’t disappearing or going anywhere at all. This is exclusively for standalone SharePoint and OneDrive plans.
The message, instead, from Microsoft is for organisations to consume these services through Microsoft 365 Business and Enterprise subscriptions, which reflects a broader trend that has been developing for several years. Microsoft increasingly delivers functionality through integrated Microsoft 365 suites rather than individual standalone products.
For organisations with older licensing arrangements, you may find this creates a good opportunity to review whether existing subscriptions still align with current business needs.
Why Microsoft Licensing Reviews Matter More Than Ever
Licensing shouldn’t be viewed through the lens of being a purely administrative exercise.
The Microsoft 365 licence assigned to a user increasingly determines which security features, compliance tools, governance controls, AI capabilities, and storage options are available to them.
As with anything that’s left over time, many businesses accumulate a mix of licensing decisions made across projects, departments, and requirements, meaning that what may have made sense three years ago may… not exactly represent the best value today.
As Microsoft continues consolidating services into broader Microsoft 365 suites, organisations that regularly review licensing are likely to be in a stronger position than those that only look at licensing during annual renewals (if at all that often).
SharePoint and OneDrive Are Getting Stronger Governance Controls
Microsoft continues to invest heavily in data governance across SharePoint and OneDrive, with recent updates providing administrators greater visibility into permissions, retention, archiving, and data protection controls.
The overall direction, it seems, is pretty straightforward: Microsoft wants organisations to have more control over how information is shared, stored, retained, archived, and secured throughout its lifecycle - something that’s particularly relevant for SMEs.
But don’t minimise the problem of data sprawl, which isn’t just an enterprise problem. It’s something that affects organisations of all sizes, as files accumulate, permissions expand, projects finish, and old content often remains accessible long after it is needed.
If you’re planning a review, a sensible place to start should be something that includes:
Broad sharing permissions
Sensitive SharePoint sites
Data Loss Prevention policies
Retention settings
Archiving opportunities
Access governance processes
Remember, good governance isn’t about creating barriers. It's about reducing unnecessary risk while maintaining productivity.
Microsoft Purview and Entra Continue to Expand
Microsoft's security strategy increasingly revolves around identity, governance, compliance, and AI oversight.
Purview continues to add capabilities to help organisations manage information risk and governance obligations. At the same time, Microsoft Entra continues to strengthen identity protection and access management controls for one simple reason: the security perimeter has changed significantly over the past decade.
Today, organisations need visibility into:
User identities
Administrative privileges
Application access
Data usage
AI interactions
Configuration changes
If you’re in an organisation operating in regulated sectors or supply-chain environments, take note. These areas are becoming increasingly important, and that won’t change any time soon.
What Should Businesses Do Before These Changes Arrive?
Most organisations don’t need to panic and undergo a major transformation project, but they may need to do a structured review.
You can start by assessing five key areas impacted (or due to be impacted) by these changes:
1. Teams Events
Review how Teams Live Events are currently being used across your business, and assess whether migration planning is required.
2. SharePoint and OneDrive Governance
Assess permissions, data protection controls, retention policies, and archiving opportunities.
3. Licensing
Review standalone plans, Microsoft 365 subscriptions, renewal dates, and opportunities to simplify licensing.
4. Security and Compliance
Evaluate Purview, Entra, identity governance, and broader compliance controls.
5. User Communication
Ensure users understand upcoming changes before they encounter them unexpectedly.
Most technology changes are easier to manage when people know they are coming.
Frequently Asked Questions About Microsoft 365 Changes in 2026
When is Teams Live Events retiring?
Teams Live Events will retire on 30 June 2026. Organisations currently using the service should begin planning a migration to Teams Town Halls or alternative event platforms.
What is replacing Teams Live Events?
Microsoft is positioning Teams Town Halls as the primary replacement for large-scale virtual events.
Are SharePoint Online and OneDrive being retired?
No. Microsoft is retiring the standalone licensing plans. The SharePoint and OneDrive services themselves remain core parts of Microsoft 365.
Do existing customers need to migrate immediately?
No. Microsoft has announced a phased retirement timeline that extends through December 2029.
Why should organisations review Microsoft 365 licensing?
Licensing increasingly determines access to security, compliance, governance, storage, and AI capabilities. Regular reviews help identify unnecessary costs and capability gaps.
What should IT teams prioritise first?
Start with Teams Live Events usage, licensing reviews, SharePoint and OneDrive governance, security controls, and user communications. Or, give your MSP a call, and they’ll be happy to help.
Final Thoughts
Microsoft 365 is becoming increasingly integrated, security-focused, and centred around broader Microsoft 365 suites.
The retirement of Teams Live Events and standalone SharePoint and OneDrive plans provides a clear indication of Microsoft's long-term direction.
For most organisations, success will not come from reacting to every roadmap announcement. It will come from understanding which changes affect operations, security, compliance, and costs, then acting before those changes become a problem.
Regular Microsoft 365 reviews remain one of the simplest ways to ensure your environment continues to support the business effectively, securely, and cost-efficiently.