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Changes to Microsoft 365 and Microsoft Teams Licensing: April 2024

Changes on Microsoft 365 Licensing and Microsoft Teams 2024

This blog post is intended to inform you about the upcoming changes to Microsoft 365 and Teams licensing, specifically regarding the separation of Teams from some subscription plans. Microsoft 365 and Office 365 now offer versions without Teams, with a price decrease and the opportunity to buy Teams as a standalone offer. These changes are intended to realign Microsoft’s global subscription structure following changes made in Europe in 2023. Here’s a breakdown of the key points:

Changes to Microsoft 365 and Teams Licensing, Effective April 1, 2024 (Outside EEA and Switzerland)

  • Ending the sale of Enterprise suites with Teams for new customers: Microsoft is discontinuing the sale of existing E1/E3/E5 suites that include Teams to new customers.
  • Introducing new suites without Teams: New, cheaper subscription plans are being introduced that exclude Teams. These include options for Enterprise, Frontline Workers, and Small and Medium Businesses (SMBs).
  • New standalone Teams offering: A separate subscription for Teams, called Microsoft Teams Enterprise, is being introduced.
  • Existing customers not affected: Customers already subscribed to plans with Teams can continue using them and renew their licenses as usual. They can also switch between plans with and without Teams during their renewal period. (Certain limitations may apply).

Key Points to Remember

  • The changes apply to customers outside the European Economic Area (EEA) and Switzerland.
  • Existing customers (those who subscribed before April 1, 2024) are not affected by these changes. (Certain limitations may apply).
  • Teams will still be included in SMB and Frontline Worker suites but will be excluded from Enterprise suites.
  • Customers can purchase the new standalone Teams subscription if they need Teams.

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In summary, changes to Microsoft 365 and Teams licensing:

What’s changing? Microsoft 365 and Office 365 now offer versions without Teams, here’s a breakdown:

New options without Teams:

    • Enterprise:
      • Previously offered plans like Office 365 E1/E3/E5 and Microsoft 365 E3/E5 will no longer include Teams.
        • Office 365 E1 (without Teams): $9.36/user/month
        • Office 365 E3 (without Teams): $24.96/user/month
        • Office 365 E5 (without Teams): $42.96/user/month
        • Microsoft 365 E3 (without Teams): $40.56/user/month
        • Microsoft 365 E5 (without Teams): $65.76/user/month 
      • Frontline:**
        • Office 365 F3 (without Teams): $4.20/user/month 
        • Microsoft 365 F1 (without Teams): $2.10/user/month
        • Microsoft 365 F3 (without Teams): $9.00/user/month
  •  
      • Business:**
        • Microsoft 365 Business Basic (without Teams) – $5.75/user/month
        • Microsoft 365 Business Standard (without Teams) – $12.36/user/month
        • Microsoft 365 Business Premium (without Teams) – $23.76/user/month

*Note: Options with Teams for these subscriptions are still available with no price changes.

  • Standalone Teams available. Get Teams functionality separately for users at this price:
    • Microsoft Teams Enterprise – $6.36/user/month

Who’s affected?

  • New customers:
    • Enterprise plans now require separate Teams licensing.
    • Business and frontline plans offer options with and without Teams.
  • Existing Enterprise customers:
    • You can keep Teams with your current plan, but new license purchases will be required for the “without Teams” version + Standalone Teams.
  • Everyone else:
    • No impact on current subscriptions or licensing for Apps for Business, Apps for Enterprise, or Teams Essentials.

We hope this blog post helps you understand the upcoming changes to Microsoft 365 and Teams licensing. If you have any further questions, book a meeting with one of our licensing agents. We are happy to help!

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