Realigning Global Licensing for Microsoft 365

Learn about changes to Microsoft 365, Office 365, and Microsoft Teams licensing effective April 1, 2024.

April 1, 2024

Last year Microsoft updated the way Microsoft 365, Office 365, and Teams were licensed in the European Economic Area (EEA) and Switzerland. Now Microsoft is announcing their plan to extend that approach worldwide.

Globally consistent licensing helps ensure clarity for customers and streamline decision making and negotiations. To that end, Microsoft is now updating the way Microsoft 365, Office 365, and Teams are licensed outside of Europe in keeping with the recent changes in the EEA. Starting 1 April, Microsoft is introducing:

1) a new lineup of commercial Microsoft 365 and Office 365 suites that do not include Teams in regions outside the EEA and Switzerland, and

2) a new standalone Teams offering for Enterprise customers in those regions.

As in the EEA and Switzerland, customers with existing subscriptions that include Microsoft Teams will be able to continue using plans they have already chosen. Additional details follow below.

Changes to Enterprise Suites:

With today’s introduction of the new commercial lineup outside the EEA and Switzerland,  Office 365 E1, Office 365 E3, Office 365 E5, Microsoft 365 E3, and Microsoft 365 E5 suites with Teams will no longer be available to net new subscribers, worldwide. Here is how customers may be impacted:

·   Customers who are currently subscribed to any of the suites involved will have new options. They can continue to use, renew, upgrade, and add seats to their current plans as usual. Or, if they wish to switch to the new lineup, they can do so on their contract anniversary or renewal.

·   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: one Microsoft 365 (no Teams) or Office 365 (no Teams) suite and Microsoft Teams Enterprise. See details of the new lineup in the table below:

*This pricelist pricing is subject to change and may vary by country and currency.

Changes to Frontline Suites:

Current Frontline suites will coexist with the new lineup. Customers will be able to choose between the existing Microsoft 365 F1, Office 365 F3, and Microsoft 365 F3 suites with Teams included, or the new versions of those suites without Teams. See details of the new lineup on the table below:

*This pricelist pricing is subject to change and may vary by country and currency.

Changes to Microsoft 365 Business Suites:

Microsoft 365 Business suites will coexist with the new lineup. Customers will be able to choose between the existing Microsoft 365 Business Basic, Microsoft 365 Business Standard, and Microsoft 365 Business Premium suites with Teams or the new versions of those suites without Teams. See details of the new lineup on the table below:

*This pricelist pricing is subject to change and may vary by country and currency.

Source: Realigning global licensing for Microsoft 365 – The Official Microsoft Blog