How to Upgrade or Switch Microsoft 365 Business Plans Without Losing Data

Microsoft 365 offers different business plans to match your company’s size and needs. Sometimes, you may need to change your plan. Maybe you’ve hired more people or need access to new features. The good news is, that switching plans is possible — and you won’t lose your emails, files, or data.

This guide explains how to upgrade or switch your Microsoft 365 plan safely, with steps anyone can follow.

Two Ways to Change Plans

There are two main ways to change a Microsoft 365 plan: automatic upgrade and manual change.

a. Automatic Plan Upgrade

This is the easiest way. If your current plan and the plan you want are compatible, Microsoft gives you the option to switch automatically.

When can you use it?

• Your account has no billing or service issues.

• The plan you want is available for upgrade.

Steps to upgrade automatically:

1. Sign in to the Microsoft 365 admin center.

2. Go to Billing > Your products.

2. Find the plan you want to change.

3. If eligible, click Switch plans.

4. Follow the steps shown on the screen.

Once complete:

• Users get moved to the new plan automatically.

• The old plan is canceled.

• All data stays safe. Users don’t lose emails or files.

• Billing moves to the new plan.

b. Manual Plan Change

Sometimes, the automatic switch is not available. This happens if you’re moving to a different type of plan, such as:

• Government plans

• Nonprofit plans

• Education plans

In these cases, you’ll need to change the plan manually.

Steps to switch manually:

1. Buy the new Microsoft 365 subscription.

2. Assign the new licenses to all users.

3. Remove the old licenses from the users.

4. Cancel or adjust the old subscription.

Make sure:

• Every user has a valid license before you cancel the old plan.

• You check that the services are running smoothly before the change.

Before You Change Plans

Before making any changes, check a few things:

• Make sure there are no issues with your current services.

• Finish any pending tasks, like credit checks or payment problems.

• Check if your plan is eligible for an upgrade.

• If you're managing many users, plan the best time to make the switch (ideally outside of work hours).

These steps help avoid errors during the upgrade.

What to Expect During and After the Switch

Changing plans does not affect your data. All your files, emails, and settings remain the same.

Here’s what happens:

• Users keep working without any service breaks.

• Admins may have limited access to billing settings during the switch.

• The old plan stops billing when the new one starts.

• You may get a credit or extra charge depending on when you made the change.

Everything works in the background, so users won’t notice much during the switch.

Common Problems and How to Avoid Them

Some issues can happen if the steps aren’t followed correctly. Here are a few common problems and how to avoid them:

Problem: Licenses are not assigned correctly.

Fix: Double-check that each user has a new license before removing the old one.

Problem: Trying to change plans during a service issue.

Fix: Always check service health in the admin center before switching.

Problem: Choosing the wrong plan.

Fix: Use Microsoft’s plan comparison tool to make sure the new plan fits your needs.

Final Tips

To make the process easier:

• Use the Switch plans tool in the admin center if it's available.

• Check Microsoft’s comparison chart to pick the right plan.

• Don’t rush. Make sure you assign all licenses correctly.

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