Changes to Microsoft 365, Office 365, and Microsoft Teams Licensing

OVERVIEW

On April 1, 2024, Microsoft introduced a new lineup of commercial Microsoft 365 and Office 365 suites that don't include Teams. They also introduced a new standalone Teams offering in regions outside the European Economic Area (EEA) and Switzerland.

Why the Change 

This change was in response to concerns raised with the European Commission as last year Microsoft updated the way Microsoft 365, Office 365, and Teams were licensed in the EEA and Switzerland. Microsoft is now extending that approach worldwide to reduce customer confusion and streamline decision making. 

OTHER LICENSING CHANGES

Microsoft is also ending the purchase of Microsoft 365 E3/E5 and Office 365 E1/E3/E5 Enterprise SKUs with Teams across all channels (Volume Licensing (VL), Cloud Solution Provider (CSP), and Web Direct). All new Microsoft 365 and Office 365 Enterprise customers in regions outside the EEA and Switzerland will need to choose from new offers for that region. Existing Enterprise customers in these regions who wish to continue using suites to which they have already subscribed can do so (including renewal and license adds).

Current Microsoft 365 Business and Frontline suites with Teams included will coexist with the new lineup. Customers will be able to choose between the existing Microsoft 365 Business Basic, Microsoft 365 Business Standard, Microsoft 365 Business Premium, Microsoft 365 F1, Office 365 F3, and Microsoft 365 F3 suites with Teams included, or the new versions of those suites without Teams.

Summed up

In summary, the new lineup includes the following:

  • New suites without Teams, which are named the same as the existing suites plus "(no Teams)." The "no Teams" suites will be in the following offers:

    • Microsoft 365 E3/E5, Office 365 E1/E3/E5

    • Microsoft 365 Business Premium, Business Standard, Business Basic

    • Microsoft 365 F1/F3, Office 365 F3

  • A new standalone Teams SKU for Enterprise: Microsoft Teams Enterprise

Microsoft customers can no longer purchase net-new subscriptions to all existing Enterprise SKUs with Teams (Office 365 E1/E3/E5 and Microsoft 365 E3/E5)

You will continue to be able to purchase existing SMB and Frontline suites with Teams (Business Basic/Standard/Premium, Microsoft 365 F1, Microsoft 365 F3, Office 365 F1) alongside the new versions without Teams.

PRICE CHANGES

Enterprise 

Frontline Worker

Microsoft 365 Business  

Please note: This pricing is subject to change and may vary by country and currency. Licensing for Microsoft 365 Apps for Business, Microsoft 365 Apps for Enterprise, and Teams Essentials is not impacted by these changes. 

Opkalla is happy to work with you as your Microsoft CSP to help you better understand the licensing changes. Contact us at https://opkalla.com/contact to get started.

Microsoft 365Cameron Keziah