These changes are intended to realign Microsofts global subscription structure following changes made in Europe in 2023
Last year Microsoft updated the way Microsoft 365, Office 365, and Teams were licensed in the European Economic Area (EEA) and Switzerland. Now they have announced plans to extend that approach worldwide.
Apparently, globally consistent licensing helps ensure clarity for customers and streamline decision making and negotiations. To that end, Microsoft are now updating the way Microsoft 365, Office 365, and Teams are licensed outside of Europe in keeping with the recent changes in the EEA. Starting 1st April, thet are introducing 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 as follows;
- 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 Apr. 1) |
|
|---|---|---|
| Office 365 E1/E3/E5 and Microsoft 365 E3/E5 suites | Office 365 E1 (no Teams) | |
| with Teams no longer sold to new subscribers. | Office 365 E3 (no Teams) | |
| Available only to customers with existing licenses | Office 365 E5 (no Teams) | |
| that include Microsoft Teams as of April 1, 2024 | Microsoft 365 E3 (no Teams) | |
| outside the EEA and Switzerland. | Microsoft 365 E5 (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 (starting Apr. 1) |
||
|---|---|---|---|
| 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) |
These changes are intended to realign Microsofts global subscription structure following changes made in Europe in 2023. For additional context on those changes, please read the official announcement on the EU Policy Blog
