Changes to Microsoft 365, Office 365, and Microsoft Teams Licensing

Microsoft Licensing Changes

On April 1, 2024, Microsoft announced a new lineup of commercial Microsoft 365 and Office 365 suites that do not include Microsoft Teams. The company also introduced a standalone Teams option for Enterprise customers. The changes come as Microsoft aims to reach globally consistent licensing and provide more flexibility in purchasing options.

According to Microsoft, the new lineup does the following:

  • Introduce new suites without Teams, which are named the same as the existing suites plus “(no Teams).” The “no Teams” suites will be in 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
  • Introduce a new standalone Teams SKU for Enterprise: Microsoft Teams Enterprise
  • End the sale of net-new subscriptions to all existing Enterprise SKUs with Teams (Office 365 E1/E3/E5 and Microsoft 365 E3/E5)
  • Continue to offer existing SMB and Frontline suites with Teams (Business Basic/Standard/Premium, MF1, MF3, OF31) alongside the new versions without Teams

How does this licensing change impact you?

For Existing Microsoft 365 Business/Frontline Customers

Existing customers who are subscribed to Microsoft 365 or Office 365 suites with Teams can continue to use, renew, upgrade, and adjust their subscriptions as usual. These customers also have the option to switch to a suite WITHOUT Teams on their contract anniversary or renewal. They can add new user subscriptions to suites without Teams or to the new Teams standalone at any time.

For New Microsoft 365 Business/Frontline Customers

New small and medium-sized business customers can choose between the existing Microsoft 365 Business Basic/Standard/Premium suites with Teams OR the new ‘No Teams’ versions of those suites.

For Existing Enterprise Customers

Existing customers who are subscribed to Office 365 E1, Office 365 E3, Office 365 E5, Microsoft 365 E3, and Microsoft 365 E5 suites with Teams can continue to use, renew, upgrade, and adjust their subscriptions as usual. Or, they can switch to the new lineup WITHOUT Teams at their contract anniversary or renewal.

For New Enterprise Customers

Office 365 E1, Office 365 E3, Office 365 E5, Microsoft 365 E3, and Microsoft 365 E5 suites with Teams will no longer be available to net new subscribers, worldwide. If they want to provide users with Teams, they will need to purchase two SKUs: one Microsoft 365 (no Teams) or Office 365 (no Teams) suite and Microsoft Teams Enterprise.

If you have any questions about these licensing changes or are interested in a Microsoft 365 subscription, please reach out to our team at Opal Business Solutions, a Microsoft Solutions Partner!

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