Microsoft License Changes – What It Means for your Business

Late last year, Microsoft updated the way Microsoft 365, Office 365, and Teams were licensed in the European Economic Area (EEA) and Switzerland. This week, effective 1st April 2024, Microsoft have extended that approach worldwide to ensure licensing consistency globally. The changes are outlined as follows:

1. End of sale of net-new subscriptions to all existing Enterprise SKUs with Teams (Microsoft 365 E3/E5 and Office 365 E1/E3/E5)
2. Introduction of new suites without Teams, which are named the same as existing suites but with the description altered to include (no Teams). The (no Teams) suites will apply to 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

3. Introduction of a stand-alone Teams SKU for Enterprise: Microsoft Teams Enterprise

Microsoft have said they will continue to offer existing SMB and Frontline suites with Teams (Business Basic/Standard/Premium, M365 F1, M365 F3, O365 F3) alongside the new versions without Teams

What do these changes mean for your organisation?

If your organisation already has subscriptions to any of the suites listed above, you can continue to use, renew, upgrade, and add seats to these as usual.

If your organisation wants to switch to the new line-up, you can do also do so on your contract anniversary or renewal.

If your organisation is not yet, or about to move to new Office and/or Microsoft 365 Enterprise suites and want to use Microsoft Teams, you will need to purchase two SKUs: Microsoft 365 (no Teams) or Office 365 (no Teams) and Microsoft Teams Enterprise.