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 current Microsoft 365 Business and Frontline suites that have Teams included will remain alongside the new lineup. Customers will have the option of choosing 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 that have Teams included, or the new versions of those suites without Teams. Existing customers can keep using, renewing, upgrading, and adding licenses to their current plans with Teams, and these plans will continue to be available.
The new commercial lineup will stop the sale of current Enterprise suites that include Teams for net new customers. Here’s how this might affect customers: New subscribers to Office/Microsoft 365 Enterprise suites who want to use Teams will have to buy two SKUs: Microsoft Teams Enterprise, and either the Microsoft 365 (no Teams) or Office 365 (no Teams) suite. The new Enterprise suites without Teams are US$1.75-$2.25 cheaper per user per month than the full suite, while the new standalone Teams SKU for Enterprise costs US$5.25 per user per month. Existing customers can keep using, renewing, upgrading, and adding licenses to their current plans if they want to continue with the SKUs they have already subscribed to. If an existing customer wants to switch to the new lineup of suites without Teams, they can do so on their contract anniversary or renewal.
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