Microsoft Adjusts Licensing for Office 365 and Teams Worldwide

There is some big news in the world of Microsoft licensing this month! In the summer of 2023, Microsoft modified the licensing for Microsoft 365, Office 365, and Teams in the European Economic Area (EEA) and Switzerland. On April 1st, 2024, they announced plans to apply the same approach to other regions worldwide. To facilitate this, Microsoft is launching new commercial Microsoft 365 and Office 365 suites that don’t include Teams in regions outside the EEA and Switzerland. Additionally, there’s a new standalone Teams offering for Enterprise plan customers in those regions. 

The expansion of these offerings will help Microsoft provide more consistent and transparent licensing for customers, simplifying their decision-making and negotiations. As in the EEA and Switzerland, customers with existing subscriptions that include Microsoft Teams can continue using the plans they’ve already selected. 

Enterprise Suites Updates 

With the introduction of the new commercial lineup outside the EEA and Switzerland, net new subscribers to Office 365 E1, Office 365 E3, Office 365 E5, Microsoft 365 E3, and Microsoft 365 E5 suites with Teams will be affected. Current subscribers will not be impacted for the time being. Below, we answer FAQs about the changes to the Enterprise suites. 

What's changing with the Enterprise suites?  

Office 365 E1, E3, and E5, and Microsoft 365 E3 and E5 with Teams are now unavailable for new customers only. 

If I already have subscriptions for the Enterprise plans that include Teams, how will I be impacted?  

Customers who are already subscribed to the Enterprise suites can either:  

1. Continue to use, renew, upgrade, and add seats to their current plans as usual.
2. Switch to the new Enterprise plans at renewal.

If I am a new subscriber to Office/Microsoft 365 Enterprise suites after April 1st and wish to provide my end users with Teams, what will I need to purchase?  

You’ll need to purchase two SKUs. For each user, you’ll need to purchase a Microsoft 365 (no Teams) SKU or an Office 365 (no Teams) SKU, and Microsoft Teams Enterprise. 

What are the prices for these new SKUs?  

Here’s a breakdown of the per-month, per-user MSRP for the new Enterprise suite SKUs: 

Frontline Suites Updates 

The new lineup won’t replace the current Frontline suites. Customers can choose the original Microsoft 365 F1, Office 365 F3, and Microsoft 365 F3 suites with Teams, or the new versions without Teams. Below is a breakdown of the per-month, per-user Manufacturer's Suggested Retail Price (MSRP) for both the current and new Frontline suite SKUs: 

Microsoft 365 Business Suites Updates 

Similar to the Frontline suites, the Microsoft 365 Business suites will continue to be available alongside the new lineup. Customers will have the option to choose from the existing Microsoft 365 Business Basic, Microsoft 365 Business Standard, and Microsoft 365 Business Premium suites with Teams, or opt for the new versions of those suites without Teams. Below is a breakdown of the per-month, per-user MSRP for both the current and the new Microsoft 365 Business suite SKUs: 

Microsoft products and licensing are constantly changing, and CloudServus wants to keep you informed about changes that may affect your organization. We are a recognized Gold Tier Microsoft Partner that provides expert licensing support, and we can offer you a comprehensive Microsoft Licensing Assessment to help your organization derive the most value from its Microsoft licensing throughout the lifecycle. 

Contact CloudServus to review your current licensing and discuss your goals for your Microsoft partnership, and we will walk you through your options.