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April 2, 2024

Recent changes to Microsoft 365, Office 365, and Microsoft Teams licensing, effective from April 1, 2024

Here are the key points:

  1. Global Licensing Realignment:
    • Last year, Microsoft updated licensing for these products in the European Economic Area (EEA) and Switzerland.
    • Now, this approach is being extended worldwide to ensure consistent licensing clarity for customers.
  2. Changes to Enterprise Suites:
    • Starting April 1, 2024, the following suites with Teams will no longer be available to new subscribers worldwide:
      • Office 365 E1/E3/E5
      • Microsoft 365 E3/E5
    • Existing subscribers can continue using their current plans or switch to the new lineup on their contract anniversary or renewal.
    • New subscribers outside the EEA and Switzerland who want Teams will need to purchase two SKUs: one Microsoft 365 (no Teams) or Office 365 (no Teams) suite and Microsoft Teams Enterprise.
  3. New Microsoft Teams Standalone Pricing:
    • Microsoft Teams Enterprise: Available as a standalone offering for $5.25 per user.
  4. Changes to Frontline Suites:
    • Existing Frontline suites will coexist with the new lineup.
    • Customers can choose between existing suites with Teams or the new versions without Teams.

Here’s a summary of the new lineup:

Existing Suites with Teams New Suites without Teams (after Apr. 1)
Office 365 E1/E3/E5 and Microsoft 365 E3/E5 suites Office 365 E1 (no Teams): $7.75 (no longer sold to new subscribers)
Office 365 E3 (no Teams): $20.75 (available only to existing licenses)
Office 365 E5 (no Teams): $35.75 (for existing licenses)
Microsoft 365 E3 (no Teams): $33.75 (outside EEA and Switzerland)
Microsoft 365 E5 (no Teams): $54.75
New Microsoft Teams Enterprise: $5.25

 

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