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Navigating Changes to Microsoft Microsoft Teams Licensing after Worldwide Alignment with EEA and Switzerland Regulation

May 22, 2024Blogs

Last year Microsoft updated the way Microsoft 365, Office 365, and Teams were licensed in the European Economic Area (EEA) and Switzerland in response to concerns raised with the European Commission. Microsoft is now extending that approach worldwide as globally consistent licensing reduces customer confusion and streamlines decision making.

Starting on April 1, 2024, Microsoft is offering a new lineup of Microsoft 365, Office 365, and Microsoft Teams SKUs worldwide to provide commercial customers with the option of purchasing Teams separately from Microsoft 365 and Office 365. Existing customers who wish to continue using SKUs to which they have already subscribed can do so (including renewals, license adds, and step-ups).

The new lineup does the following:

    • Introduce new suites without Teams, which are named the same as the existing suites plus “(no Teams).” The “no Teams” suites will be 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, Office 365 F3
    • Introduce a new standalone Teams SKU for Enterprise: Microsoft Teams Enterprise
    • End the sale of net-new subscriptions to all existing Enterprise SKUs with Teams (Office 365 E1/E3/E5 and Microsoft 365 E3/E5)
    • Continue to offer existing SMB and Frontline suites with Teams (Business Basic/Standard/Premium, MF1, MF3, OF3) alongside the new versions without Teams

The “No Teams” SKUs are now available in the Crayon CSP pricelist.

How customers might be impacted

For Microsoft 365 Business and Frontline suites

Current Microsoft 365 Business and Frontline suites with Teams included will continue to exist with the new lineup.

Customers will be able to choose between the existing Microsoft 365 Business Basic, Microsoft 365 Business Standard, Microsoft 365 Business Premium, Microsoft 365 F1, Office 365 F3, and Microsoft 365 F3 suites with Teams included, or the new versions of those suites without Teams. Existing customers can continue to use, renew, upgrade, and add licenses to their current plans with Teams, and these plan with continue to be available.

Please refer to the table for details on the SKUs available for M365 Business and Frontline suites and price in USD per user per month (annual commit) before tax.

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