Microsoft Announces Changes to 365 and Teams Licensing in Europe

October 20, 2023 Microsoft Partner News

As a leading source of information on cloud technology, we at Qloud Blog are committed to keeping you updated on the latest developments in the industry. Today, we bring you an important update from Microsoft regarding changes to their Microsoft 365 and Teams licensing in Europe.

Starting from October 1, 2023, Microsoft will be introducing a new lineup of Microsoft 365, Office 365, and Microsoft Teams SKUs in the European Economic Area (EEA) and Switzerland. This change is significant as it provides customers with the option to purchase Teams separately from Microsoft 365 and Office 365.

Microsoft has made it clear that existing Microsoft 365 E3/E5 and Office 365 E1/E3/E5 suites will no longer be sold to net new customers in the EEA or Switzerland. However, to ensure a smooth transition for customers, some backend processes such as removal from price lists and catalog might be delayed.

This change is a direct response to feedback from the European Commission (EC). Microsoft believes that this new licensing approach will address the EC's feedback while minimizing disruption for customers and partners.

So, what exactly is changing? From October 1, 2023, Microsoft will introduce new commercial Microsoft 365 and Office 365 suites in the EEA and Switzerland that do not include Teams. They will also introduce a new standalone Teams offering for Enterprise customers. Existing customers who wish to continue using the suites they are already subscribed to can do so as usual.

The new lineup will introduce EEA/Switzerland-specific suites without Teams, named the same as the full suites plus "EEA (no Teams)." There will also be a new EEA-specific standalone Teams SKU for Enterprise: Microsoft Teams EEA. The sale of net-new subscriptions to all existing Enterprise SKUs with Teams (Office 365 E1/E3/E5 and Microsoft 365 E3/E5) in the EEA and Switzerland will end. However, existing SMB and Frontline suites with Teams will continue to be offered alongside the new versions without Teams.

For a more detailed breakdown of SKU and price changes, you can consult the FAQ document and partner guidance deck on the Teams in EU partner website. A short training video is also available to help you understand how to discuss these changes with your EEA and Swiss customers.

If you have any further questions not addressed in the FAQ, or need clarification on pricing, offer availability, and upgrades, migrations and conversions, you can create a support request in Partner Center.

As always, we at Qloud Blog will continue to monitor these changes and provide updates as necessary. We understand that changes like these can be complex and confusing, and we're here to help you navigate them. Stay tuned for more updates and insights on cloud technology.

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