3.5 min to readPublisher Advisory Services

Microsoft Teams decoupled from Microsoft Suites: Does this mean a choice in licensing or more complexity?

Fraser Maclean
Fraser MacleanMicrosoft Alliances North America
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Effective April 1st, Microsoft announced via their Licensing News page that you can now purchase Microsoft Suites without Microsoft Teams included.

This announcement extends last year's announcement in the European Economic Area (EEA) and Switzerland regions where Teams was already sold separately. Microsoft stated that the extension of this change was to ensure clarity for customers and to have a globally consistent licensing model for streamlined decision-making.

Additionally, a Microsoft spokesperson shared, “Doing so also addresses the feedback from the European Commission by providing multinational companies more flexibility when they want to standardize their purchasing across geographies.”

Currently, this change only applies to commercial SKUs (Enterprise, Business, and Frontline) and will not impact Consumer, Academic, US Government, and Nonprofit-specific SKUs.

What does this mean?

As a current subscriber to the commercial suites of licenses that include Microsoft Teams, you now have options. You can continue to use, renew, upgrade, and add seats to your current plans as usual. If you choose to move to a suite without Microsoft Teams, you can do so on your contract anniversary or renewal date.

All new subscribers will need to purchase Microsoft Teams separately from their Office 365 E1/E3/E5 and Microsoft 365 E3/E5 suites. New subscribers will also see a price increase with this change. If you want to leverage Microsoft Teams, you will be purchasing two licenses. While the suite price has been reduced, the add-on cost of the Microsoft Teams license increases the overall price by 5-30% on average. Below is a table outlining Enterprise SKUS comparing pre-April 1 to the new licensing model for new subscribers.

Microsoft Teams decoupled from Microsoft Suites - Price list
*This price list pricing is subject to change and may vary by country and currency.

What do I need to do?

Technically, you do not need to do anything. However, should you want to take advantage of the flexibility offered with the decoupling of Microsoft Teams, you have different options depending on your current agreement type (Enterprise Agreement, CSP, etc.) and model.

As a new subscriber – now is the time to review what your tech stack should be and who needs access to what tools.

It’s also important to keep in mind that you will need to make a strategic decision when the time comes to renew your Microsoft Enterprise Agreement or go for a longer term CSP subscription. If you move to licensing without Teams, and later realize you need or want Teams, the above price increases will cost you.

The best first step is to engage your Microsoft partner, like SoftwareOne, to understand when this will have an impact on you, and how to take action in a way that benefits you the most. Before you make any decisions, SoftwareOne recommends a comprehensive review of your licensing estate – and not just at renewal or anniversary time. This announcement underscores the importance of consistently reviewing your licensing needs, ensuring you maximize the value of the suites or packages you’ve purchased, and reassessing your requirements as your business evolves.

Having clear visibility into your licensing is much like having a compass for your business. It allows you to navigate with agility, adjusting the course as needed. Consider this scenario: You have a department of employees who haven’t fully embraced Microsoft Teams. Perhaps it’s an enablement issue, or maybe their workflow aligns better with a non-Teams suite. With the right insights, you now have the power to make informed decisions. Why pay for something you’re not fully utilizing? By regularly assessing your licensing needs, you can optimize costs and ensure that every dollar spent aligns with your business goals.

Remember - staying informed and adaptable is key in today’s dynamic business landscape.

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Empower your business with SoftwareOne’s Microsoft Advisory Services

Navigate the complexities of Microsoft’s licensing changes with confidence. Learn more about SoftwareOne’s Microsoft Advisory Services today and how to get expert guidance and support.

Empower your business with SoftwareOne’s Microsoft Advisory Services

Navigate the complexities of Microsoft’s licensing changes with confidence. Learn more about SoftwareOne’s Microsoft Advisory Services today and how to get expert guidance and support.

Author

Fraser Maclean

Fraser Maclean
Microsoft Alliances North America