Changing your IT Managed Services Provider (MSP) can feel like a big step, but with…
Is your business IT ready for 2027?
Most years, IT planning is about gradual improvement: replacing a few laptops, upgrading a system here and there, tidying up security. 2027 is different. Several hard deadlines land within weeks of each other at the start of the year, some of them set by Microsoft and one by the UK’s telecoms industry. At the same time, licensing costs are rising and customers are asking tougher questions about security.
None of this is cause for panic. But it does mean the last quarter of 2026 is the time to plan, not January. Here’s what North East businesses should be preparing for, and how a managed IT provider can help.
The deadlines at a glance
- 12 January 2027: Windows Server 2016 reaches the end of its extended support.
- 31 January 2027: the traditional copper telephone network closes.
- 1 February 2027: Microsoft’s cut-off for text message and voice call sign-in codes in Entra ID applies to every business tenant.
Windows Server 2016 reaches the end of the road
Microsoft has confirmed that support for Windows Server 2016 ends in January 2027, with extended support finishing on 12 January. After that date, there are no more security updates for the operating system. The server will keep running, which is exactly why this deadline is easy to ignore. But every new vulnerability discovered after that point stays open for good.
Plenty of small and medium businesses in the region still have a Server 2016 machine tucked away in a comms cupboard, running file shares, a line of business application or an old accounts package. Unsupported servers are also a problem for Cyber Essentials, which requires supported software across the systems in scope.
The options are broadly to upgrade the server in place, replace it with new hardware, move the workload into the cloud or to a managed datacentre, or retire it entirely if the job it does can now be handled by Microsoft 365. The right answer depends on what the server actually does, which is why the first step is always finding out.
Windows 10 is getting more expensive to keep
Windows 10 reached the end of mainstream support in October 2025. Businesses that weren’t ready to move bought Extended Security Updates, but year one of that scheme ends on 13 October 2026 and the price per device doubles for year two. The costs are cumulative, so a device joining late has to pay for the years it missed. We’ve set out the numbers in why your Windows 10 bill might be about to double.
For most businesses, the sensible plan is to treat Extended Security Updates as a short bridge, not a long-term strategy, and to phase in Windows 11 devices over the next 12 months.
Phone lines and alarms on the copper network
The traditional copper telephone network closes on 31 January 2027. Most businesses have already moved their desk phones to internet-based systems, but it’s the other things plugged into phone lines that cause problems: lift alarms, door entry panels, fire and intruder alarms, card terminals and franking machines.
If any of those are still on analogue lines, they need checking now. Our guide to what to check before the phone line switch-off lists the common culprits. If you’re still weighing up a replacement phone system, a cloud hosted VoIP platform brings calls, voicemail and call forwarding onto your existing internet connection.
That shift does make your broadband more important than ever. Lose the connection and you can lose phones, card payments and access to files at once, which is why we’d suggest reading what happens to your business when the internet goes down alongside any phone system project.
Microsoft sign-in changes
Microsoft is retiring text message and voice call authentication in Entra ID, the system that controls sign-in to Microsoft 365. Passkeys became the default method in September 2026, and the hard cut-off on 1 February 2027 applies to every tenant. Staff who still rely on a code sent by text will need to move to the Microsoft Authenticator app or a passkey before then. Our post on Microsoft’s new sign-in changes explains who’s affected and how to roll the change out without a flood of locked-out users.
Licensing costs are going up
Microsoft raised prices on a number of popular Microsoft 365 plans on 1 July 2026. According to Office Watch, the rises affect Business, Enterprise and Frontline plans, with Business Standard up by around 12% and Business Basic by around 16%, while Business Premium stayed the same. Existing customers see the new prices at their first renewal after that date, so many businesses will feel the increase during 2027.
Renewal is a good moment to check you’re paying for the right licences. It’s common to find unused accounts for former staff, or people on expensive plans who only need email. The smaller gap between Business Standard and Business Premium also means the step up to Premium, with its stronger security features, is now better value than it was.
Security expectations are rising
The Cyber Security Breaches Survey 2025/2026 found that 43% of UK businesses identified a breach or attack in the past year, with phishing the most common and most disruptive. At the same time, the Cyber Security and Resilience Bill is making its way through Parliament. Most of its direct duties fall on larger organisations and IT providers, but those organisations will pass requirements down to their own suppliers.
In practice, that means more security questionnaires with contract renewals, more requests for Cyber Essentials certification and more scrutiny from insurers. Businesses that can show evidence of good practice will find those conversations far easier than those that can’t.
AI tools need rules
Staff are already using AI tools at work, whether or not the business has approved them. That brings real productivity gains, but also a risk that client data, contracts or personal information end up in services you have no agreement with. Before 2027, every business should have a simple policy covering which tools are approved and what information can go into them. We’ve covered this in do you know which AI tools your team is using?
Backups and recovery
With several major changes happening at once, the chance of something going wrong during a migration goes up. Before touching any server or moving any system, make sure your backups are current, stored separately and tested. Our guide on testing your backups explains what a proper restore test looks like.
A practical plan for the next 90 days
- October: take stock. List every server, device, phone line and Microsoft 365 licence, and note which are affected by the deadlines above.
- October: decide on Windows 10 devices before year two of Extended Security Updates starts, and budget for replacements.
- November: plan and schedule any Windows Server 2016 migrations, leaving time for testing before 12 January.
- November: check every alarm, lift, door entry system and card terminal still using a phone line, and contact the relevant suppliers.
- December: move remaining staff off text message sign-in codes and onto the Authenticator app or passkeys.
- Ongoing: review Microsoft 365 licences before renewal, test backups and put a simple AI use policy in place.
Budgeting for 2027
It’s worth being realistic. Replacing a server, a batch of laptops and a phone system in the same year is a significant cost for a small business. Spreading the work across the next 12 months, and prioritising anything with a hard security deadline, makes it more manageable. A managed service agreement can also make IT spending more predictable, with a fixed monthly cost for support rather than unexpected bills when things break.
How One IT Support can help
Our team has been helping businesses across Newcastle and the North East plan and deliver IT changes for more than 20 years, from network installations to full business IT solutions. If you’d like help working out what 2027 means for your business, get in touch or call us on 0191 296 0111 for a free, no-obligation review.