Microsoft 365: realigned global licensing

Effective April 1, 2024, Microsoft has realigned the global licensing for Microsoft 365.

In October 2023, Microsoft updated the way Microsoft 365, Office 365, and Teams were licensed in the European Economic Area (EEA) and Switzerland. Now Microsoft extended that approach worldwide.

Globally consistent licensing helps ensure clarity for customers and streamline decision making and negotiations.

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 and Switzerland.

Starting April 1, 2024, Microsoft introduces

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.

 

Do these changes have any impact on customers in the European Economic Area (EEA) and Switzerland?

No. All the EEA-specific offerings introduced in October 2023 will remain available alongside the offerings for other regions announced above. Licensing details for the EEA and Switzerland are available here: Microsoft 365 and Teams: new subscription structure in Europe – SCHNEIDER IT MANAGEMENT.

 

Changes to Microsoft 365 Enterprise suites

With the 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.

How may customers be affected?

  • 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:
Existing suites with Teams New Suites without Teams (after April 1, 2024)
Office 365 E1/E3/E5 and Microsoft 365 E3/E5 suites with Teams no longer sold to new subscribers. Available only to customers with existing licenses that include Microsoft Teams as of April 1, 2024 outside the EEA and Switzerland.

 

Office 365 E1 (no Teams)
Office 365 E3 (no Teams)
Office 365 E5 (no Teams)
Microsoft 365 E3 (no Teams)
Microsoft 365 E5 (no Teams)
New Microsoft Teams Standalone
Microsoft Teams Enterprise

 

Changes to Microsoft 365 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:

Existing Suites with Teams New Suites without Teams (after April 1, 2024)
Microsoft 365 F1 Microsoft 365 F1 (no Teams)
Office 365 F3 Office 365 F3 (no Teams)
Microsoft 365 F3 Microsoft 365 F3 (no Teams)

 

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:

Existing Suites with Teams New Suites without Teams (after April 1, 2024)
Microsoft 365 Business Basic Microsoft 365 Business Basic (no Teams)
Microsoft 365 Business Standard​ Microsoft 365 Business Standard (no Teams)
Microsoft 365 Business Premium​ Microsoft 365 Business Premium (no Teams)

 

More information

For the official Microsoft announcement, please visit: https://www.microsoft.com/en-us/licensing/news/Microsoft365-Teams-WW.

For our vendor page of Microsoft, please visit: https://www.schneider.im/software/microsoft.

Please contact us for free expert consultancy on your specific Microsoft software and online services requirements and to request a quote today.

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