Microsoft 365 and Office 365 Licensing Changes: A Global Update

Microsoft 365 and Office 365 Licensing Changes: A Global Update

Starting April 1, 2024, Microsoft is set to revolutionize its licensing structure for Microsoft 365 and Office 365 outside the European Economic Area (EEA) and Switzerland by segregating Microsoft Teams from several of its suite offerings. This change, mirroring last year’s adjustments within the EEA and Switzerland in response to European Commission concerns, aims to simplify customer choices globally.

The new strategy will introduce commercial suites that exclude Teams, alongside a standalone Microsoft Teams Enterprise option. This marks an end to the sale of new subscriptions for existing enterprise suites that incorporate Teams across all sales channels, including volume licensing and the Cloud Solution Provider program. Microsoft's decision is geared towards offering consistent licensing options worldwide, reducing customer confusion, and facilitating clearer decision-making processes.

Customers, especially new ones, will now have the flexibility to purchase Teams separately, ensuring that existing customers can continue using their current plans or opt for the new "no Teams" versions at renewal times. This shift reflects Microsoft's commitment to adaptability and customer-focused solutions in its service delivery.

Microsoft will launch new suite versions named identically to existing ones but with "(no Teams)" appended, affecting offerings like Microsoft 365 Business Premium and Office 365 F3. Additionally, a new standalone SKU, Microsoft Teams Enterprise, will be introduced specifically for enterprise customers. Concurrently, sales of new subscriptions to existing enterprise SKUs that include Teams will cease. However, existing SMB and Frontline suites that include Teams will continue to be available, ensuring a smooth transition and multiple options for users.

For more detailed information, visit the official Microsoft announcement.