Microsoft Announces Global Changes to Licensing for Microsoft 365 Office 365 and Teams

April 1, 2024 Microsoft Partner News

Microsoft has recently announced a significant change to its licensing approach for Microsoft 365, Office 365, and Teams. This change, which was initially implemented in the European Economic Area (EEA) and Switzerland, is now being expanded worldwide. The aim of this global expansion is to reduce customer confusion and streamline decision-making processes.

Starting from April 1, 2024, Microsoft will introduce new commercial Microsoft 365 and Office 365 suites that do not include Teams in regions outside the EEA and Switzerland. Alongside this, a new standalone Teams offering will be available for Enterprise customers in these regions.

This change also means the end of net-new subscriptions to existing Microsoft 365 E3/E5 and Office 365 E1/E3/E5 Enterprise SKUs with Teams across all channels, including volume licensing (VL), Cloud Solution Provider (CSP), and Web Direct. New Microsoft 365 and Office 365 Enterprise customers in regions outside the EEA and Switzerland will need to choose from new offers for their respective regions. However, existing customers who wish to continue using suites to which they have already subscribed can do so, including renewal, upsell, and license adds.

The new lineup will introduce new suites without Teams, named the same as the existing suites plus "(no Teams)." These "no Teams" suites will be available in the following offers: Microsoft 365 E3/E5, Office 365 E1/E3/E5, Microsoft 365 Business Premium, Business Standard, Business Basic, Microsoft 365 F1/F3, and Office 365 F3. A new standalone Teams SKU for Enterprise, named Microsoft Teams Enterprise, will also be introduced.

The impact of these changes on customers will vary. For Enterprise suites, the sale of current Enterprise suites that include Teams to net new subscribers outside the EEA and Switzerland will end. Net new subscribers to Office/Microsoft 365 Enterprise suites outside the EEA and Switzerland who wish to provide their end users with Teams will need to purchase two SKUs: Microsoft Teams Enterprise, plus either the Microsoft 365 (no Teams) or Office 365 (no Teams) suite. Existing customers can continue to use, renew, upgrade, and add licenses to their current plans.

For Microsoft 365 Business and Frontline suites, current suites with Teams included will coexist with the new lineup. Customers will have the choice between the existing suites with Teams included, or the new versions of those suites without Teams.

Microsoft has provided a range of resources to help partners and customers understand these changes, including a Partner FAQ, a partner guidance deck, and a short training video. For any questions not addressed in these resources, Microsoft encourages partners to create a Support request in Partner Center.

At Qloud Blog, we understand that these changes may raise questions and concerns for our readers. We encourage you to familiarize yourself with the full details of these changes and to reach out to Microsoft or your CSP for further clarification. As always, we will continue to provide updates and insights on these and other developments in the cloud computing space.

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