Microsoft 365 Teams Licensing Changes
Microsoft is updating and changing its licensing SKU’s for Microsoft 365 in order to ensure clarity and simplify decision-making for customers, and maybe even save some customers a little money at the same time.
What they’re doing is updating how Microsoft 365, Office 365, and Teams are licensed, with the primary change being Teams will now be a stand-alone product that you need to add on for users. It will no longer be included in most business or enterprise suites. These changes are already in effect.
THIS CHANGE EFFECTS ALL NEW AND EXISTING CUSTOMERS.
SUMMARY
Lets examine some of the changes, what you can expect, and what you should do next to prepare for these changes.
01
New Licensing for M365 and O365 Suites
New commercial Microsoft 365 and Office 365 suites will no longer include Teams. This change allows customers to choose suites without Teams if they prefer.
02
Stand-Alone Teams Options
New standalone options for Teams are introduced for standard and enterprise customers. This allows organizations to add Teams separately if needed, alongside their chosen Microsoft or Office suite.
03
Impact to Existing Subscribers
Customers currently subscribed to suites that include Teams can continue using, renewing, upgrading, and adding seats to their plans as usual. They also have the option to switch to the new lineup when their contract renews.
04
New Pricing Options
Prices for suites without Teams have been adjusted, offering flexibility based on customer needs and preferences.
NEW Microsoft 365 Enterprise Pricing
| 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 |
NEW Microsoft 365 Business Pricing
| Microsoft 365 Business Basic (no Teams) | $4.75 |
| Microsoft 365 Business Standard (no Teams) | $10.25 |
| Microsoft 365 Business Premium (no Teams) | $19.75 |
NEW Microsoft TEAMS Licenses and Pricing
| Microsoft Teams Enterprise | $5.75 |
| Microsoft Teams Essentials | $4.00 |
Teams Essentials vs. Enterprise
Microsoft Teams Essentials remains unchanged; it provides meetings, chat, calling (VOIP), and collaboration for customers worldwide with up to 300 users, with a 300-seat meeting attendee cap.
Microsoft Teams Enterprise provides meetings, chat, calling (VOIP), and collaboration without any limitation on seat numbers and a 1000-seat cap on meeting attendees.
Moving Forward
As it comes time to renew existing Microsoft 365 subscriptions, you’ll want to examine the companywide use of teams for all users and determine if Teams Essentials or Enterprise is right for everyone. You might need to mix and match these options throughout the company to best suit your team’s particular needs, and potentially save some money in the process.
If you’d like assistance with the process our team of experts can help ensure you’re getting the right products for your team members at the right prices. Contact Us today for more information.