Microsoft 365 and Teams: new subscription structure in Europe

Effective October 1, 2023, Microsoft announced important changes to the way they license Microsoft 365, Office 365, and Microsoft Teams in the European Economic Area (EEA) and Switzerland.

 

How will these changes impact Microsoft customers and partners in these regions?

To remain focused on the needs of customers while also taking meaningful steps to address concerns that have been raised with the European Commission, Microsoft updates the way Microsoft 365, Office 365, and Teams are licensed in the EEA and Switzerland.

Starting October 1, 2023, Microsoft will introduce

  • a new lineup of commercial Microsoft 365 and Office 365 suites in these regions that do not include Teams, and
  • a new standalone Teams offering for Enterprise customers.

These changes will not impact currently subscribed customers, and will be implemented in the following way:

 

Changes to Enterprise Suites:

With the introduction of the new commercial lineup, the sale of current Enterprise suites that include Teams to net new subscribers will end. As a result, 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 in the EEA and Switzerland.

  • Customers who are currently subscribed to any of the suites involved will have new options. They can continue to use, renew, 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 365 Enterprise or Microsoft 365 Enterprise suites who wish to provide their end users with Teams will need to purchase two SKUs: one EEA-specific Microsoft 365 or Office 365 suite and Microsoft Teams EEA.

 

Changes to Frontline suites:

Current Frontline suites will coexist with the new lineup. Customers in the EEA and Switzerland 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 EEA-specific versions of those suites without Teams.

 

Changes to Microsoft 365 Business suites:

Microsoft 365 Business suites will coexist with the new lineup. Customers in the EEA and Switzerland 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 EEA-specific versions of those suites without Teams.

 

More information:

For more details on these changes, please read the full articles:

For useful software licensing information on Microsoft licensing programs, please visit: https://www.schneider.im/software/microsoft/.

Please contact us for free expert consultancy on your specific Microsoft agreements and to request a quote.

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