Microsoft Licensing Update

Important information regarding your Microsoft licensing.

Last year, Microsoft updated the way Microsoft 365, Office 365, and Teams were licensed in the European Economic Area (EEA) and Switzerland. Effective 1st April 2024, Microsoft have extended that approach worldwide to ensure licensing consistency globally. The changes are outlined as follows:

  1. End of sale of net-new subscriptions to all existing Enterprise SKUs with Teams (Microsoft 365 E3/E5 and Office 365 E1/E3/E5)
  2. Introduction of new suites without Teams, which are named the same as existing suites but with the description altered to include (no Teams). The (no Teams) suites will apply to the following offers:
  • Microsoft 365 E3/E5, Office 365 E1/E3/E5
  • Microsoft 365 Business Premium, Business Standard, Business Basic
  • Microsoft 365 F1/F3, Office 365 F3

3. Introduction of a stand-alone Teams SKU for Enterprise: Microsoft Teams Enterprise

Microsoft will continue to offer existing SMB and Frontline suites with Teams (Business Basic/Standard/Premium, M365 F1, M365 F3, O365 F3) alongside the new versions without Teams.

What do these changes mean for me and my customers?

Any existing customers who are currently subscribed to any of the involved suites can continue to use, renew, upgrade, and add seats to their current plans as usual. If your customers want to switch to the new line-up, they can do so on their contract anniversary or renewal.

If you have net-new subscribers to Office and/or Microsoft 365 Enterprise suites who want Microsoft Teams capabilities, they will need to purchase two SKUs: Microsoft 365 (no Teams) or Office 365 (no Teams) and Microsoft Teams Enterprise.

Please note: These changes apply only to commercial SKUs. Consumer, Academic, US Government and Non-profit suites are not currently impacted.

These new products are currently being uploaded into CASCADE and will be available for you to purchase shortly. In the meantime, please feel free to reach out to your account manager or [email protected] with any questions or find further information in the following links:

  1. Partner Centre Announcement
  2. Global Blog Post
  3. Partner FAQ Guide
  4. Microsoft Landing Page
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