Key findings

The State of Microsoft 365 2026, in six numbers

Two independent surveys, 1,700+ IT pros, nine countries. This is what mattered most in each chapter.

AI confidence 93% confident · 29% exposed
AI reckoning 86% expect ROI · 51% can't see the cost
Governance 77% had an incident · 1% have a tool
The estate 28% all-cloud · 31% chose on-prem
Compliance 20% → 34% blocked by compliance
Migration 94% migrated · 7% have no regrets

Two surveys, reported separately: an IT operations survey of 943 IT pros covering migration, governance, compliance and cost, and an AI governance survey of 851 IT leaders covering AI deployment, exposure and governance maturity.

Everyone's confident. Find out if you should be.

Two scores, your percentile against 1,700+ peers, and what actually happened to the teams who answered the way you did.

Get your score →
93% Confident
AI governance confidence vs actual exposure — AI governance study, n=851
Confident their M365 governance framework is ready for AI (B-Q8)93%
AI has already surfaced data it shouldn't have had access to (B-Q17)29%
63% No incident
29% Had incident
8% Not sure
86% Expect ROI
AI ROI expectations vs cost visibility — AI governance study, n=851
Expect measurable ROI from M365 AI within 18 months (B-Q28)86%
Have no visibility into what their AI currently costs (B-Q27)51%
51% Cost visibility
47% Governance gap
44% Lack of data
57% Built-in tools only
Governance tooling approach and incident rate — IT operations study, n=943
Using built-in Microsoft tools only (Q27)57%
Manual processes or internal policies (Q27)39%
Had at least one governance incident in past 12 months77%
Using a purpose-built governance tool (Q27)1%
57% Built-in only
39% Manual policies
4% Not addressing
1% Purpose-built
28% All cloud
Cloud vs on-premises distribution — IT operations study, n=943, Q4/Q7
Fully migrated to the cloud (Q4)28%
Small amount of data still on-premises (Q4)36%
Roughly equal cloud and on-premises (Q4)25%
Deliberately chose to remain on-premises — majority or all (Q4)11%
Migrated to SharePoint Server on-premises (Q7)31%
31% Chose on-prem
20% 2025
Compliance as a blocker for migrations — year over year, IT operations study, n=943, Q23
2025: compliance significantly delays or prevents migrations20%
2026: compliance significantly delays or prevents migrations34%
53% Moderate impact
34% Significant
10% Slight impact
3% Not a factor
94% Migrated
Migration activity vs satisfaction — IT operations study, n=943
Migrated something in the last two years (Q6)94%
Would do their migration the same way again (Q21)7%
45% Start earlier
38% Better tooling
37% Cleanup first
7% Went well

01 · AI Confidence

93% are confident their governance framework is ready for AI. Yet 29% have already had it surface something it shouldn't have had access to.

The teams most confident in their governance, permissions, and remediation capabilities reported a higher incident rate than the study average. Confidence isn't evidence.

See what AI has actually surfaced, and in whose environments.

Read chapter 01: AI confidence →

02 · AI Reckoning

86% expect measurable ROI from their Microsoft 365 AI investments within 18 months. But 51% can't see what that AI currently costs them.

Governance isn't competing with the AI budget — 78% say governance activity shapes their investment in AI further. But you can't prove a return you can't price.

See where the AI money goes, and what teams still can't account for.

Read chapter 02: The AI reckoning →

03 · Governance

77% had at least one governance incident in the past 12 months. Only 1% use a tool built to prevent one.

63% describe their governance as operationalized or better. 57% are running it on built-in tools alone. Everyone has the problem. Almost nobody has the tool.

See which incidents actually happened, and how teams found out.

Read chapter 03: Governance →

04 · The Estate

Only 28% of organizations are fully in the cloud. 31% deliberately chose to migrate to SharePoint Server.

The SharePoint 2016/2019 end-of-support deadline moved almost everyone. It just didn't move them all to the cloud.

See what the estate is really made of, including the layer most inventories miss.

Read chapter 04: The estate →

05 · Compliance

A year ago, 20% said compliance significantly delays or prevents migrations. Now it's 34%.

37% say they need better auditing and reporting tools — an evidence problem, not a restriction problem. Compliance doesn't have to be a blocker. It can be a deliverable.

See where sovereignty is now shaping infrastructure and AI decisions.

Read chapter 05: Compliance →

06 · Migration

94% of organizations migrated something in the last two years. Only 7% would do it the same way again.

The average organization isn't between migrations, it's running two or three at once. Migration isn't a project you finish. It's a capability you build.

See what teams would do differently and what actually eats the timeline.

Read chapter 06: Migration → Get the full report →

What to do about it

Six chapters of pressure. One operating model.

Closing these gaps isn't a project with an end date. It's a loop.

01See02Decide03Change04Operate05Prove & improve
01 See

What exists, who owns it, what can AI reach, what does it cost?

02 Decide

What matters most, and which requirements shape the call?

03 Change

What gets remediated, migrated, retained, retired, replaced?

04 Operate

How does the control survive the project that created it?

05 Prove & improve

Did it work, did the investment pay, what changes next?