Enhancements to Microsoft 365 and Office 365 Licensing Outside Europe
In their ongoing commitment to global consistency, effective April 1, 2024, Microsoft has introduced updates to the licensing structure for Microsoft 365, Office 365, and Microsoft Teams outside of Europe. These changes align with the adjustments made in 2023 for the European Economic Area (EEA) and Switzerland.
1. Bundle Licensing Plans:
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- Going forward, bundle licensing plans will no longer automatically include Microsoft Teams. This allows greater flexibility for organizations to tailor their licensing based on their specific needs.
2. Standalone Teams Offering for Enterprise Customers:
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- They are introducing a new standalone Teams offering specifically for Enterprise Customers. This option allows organizations to focus solely on Teams without additional bundled services.
3. Options for Existing Enterprise Customers:
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- Enterprise Customers who currently have bundle SKUs that include Teams (such as Office 365 E1/E3/E5 and Microsoft 365 E3/E5) have two choices:
- Option 1: Continue using, renewing, upgrading, or adding seats to their existing plans as usual.
- Option 2: Switch to a new “No Teams” SKU at their renewal or anniversary date.
- Enterprise Customers who currently have bundle SKUs that include Teams (such as Office 365 E1/E3/E5 and Microsoft 365 E3/E5) have two choices:
4. New Subscribers:
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- Net new subscribers to Office 365 or Microsoft 365 Enterprise suites who wish to use Teams will need to purchase two separate SKUs:
- Microsoft 365 (No Teams) or Office 365 (No Teams)
- Microsoft Teams Enterprise
- Net new subscribers to Office 365 or Microsoft 365 Enterprise suites who wish to use Teams will need to purchase two separate SKUs:
5. Frontline and Business Customers:
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- Frontline and Business Customers will coexist with the new licensing lineup. They can choose between licenses that include Teams or those without Teams.
MSRP listed for the new SKUs are listed below (pricing is subject to change and may vary by country and currency)
| Name | MSRP |
| Office 365 E1 (no Teams) | $7.75 |
| Office 365 E3 (no Teams) | $20.75 |
| Office 365 E5 (no Teams) | $35.75 |
| Microsoft 365 E3 (no Teams) | $33.75 |
| Microsoft 365 E5 (no Teams) | $54.75 |
| Microsoft Teams Enterprise | $5.25 |
| Microsoft 365 F1 (no Teams) | $1.75 |
| Office 365 E3 (no Teams) | $3.50 |
| Microsoft 365 F3 (no Teams) | $7.50 |
| Microsoft 365 Business Basic (no Teams) | $4.75 |
| Microsoft 365 Business Standard (no Teams) | $10.25 |
| Microsoft 365 Business Premium (no Teams) | $19.75 |
(Monthly pricing with an Annual Contract)
If you have any questions or concerns please reach out to your ANM account manager to be connected with our Microsoft Licensing Specialists.
Chris Hinch
Microsoft Practice Director
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