Let’s learn the Important MS Teams Licensing Changes for EU Customers. In a recent update, Microsoft has announced important changes to the licensing structure for Microsoft 365, Office 365, and Microsoft Teams in the European Economic Area (EEA) and Switzerland.
This change takes effect on October 1, 2023, and affects all sellers and partners who sell Modern Work in the EEA and Switzerland, regardless of where the seller or partner is located. Microsoft is implementing these changes directly, responding to European Commission (EC) feedback.
Microsoft 365 is a user-based licensing solution encompassing Office 365, Windows 10 Enterprise, and Enterprise Mobility + Security, offering customers a choice between two editions: E3 and E5. This article helps you understand how the subscription structure changes and what customer scenarios you may sell the subscriptions without Teams and with Teams.
Microsoft 365 offers a subscription package with the most collaborative, up-to-date features in one seamless, integrated experience. This new licensing approach takes substantial measures to effectively address the Commission’s input while ensuring minimal disruption for customers and partners.
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What key Changes is Microsoft Making to Licensing in the European Economic Area (EEA) and Switzerland?
Microsoft is implementing important changes to the licensing and availability of Microsoft 365 and Microsoft Teams in the EEA and Switzerland. These changes are in response to feedback from the European Commission and aim to align with regional regulations.
Which Channels will be Affected by these Changes?
These changes will impact various channels within the European Economic Area (EEA) and Switzerland, including commercial Volume Licensing, CSP (Cloud Solution Provider), and Web Direct for customers in these regions.
Will there be Changes to Licensing or Usage Rights?
No, This announcement does not include changes to the licensing or usage rights of Microsoft 365 or Office 365 products.
Important MS Teams Licensing Changes for EU Customers | New Enhanced Microsoft 365 Subscription Plans in Europe
Microsoft has integrated modern communication and collaboration capabilities into our business suites, aligning with the expectations of business customers not only in Europe but across the globe for a contemporary and comprehensive work solution.
Microsoft is introducing significant modifications to the licensing and availability of Microsoft 365 and Microsoft Teams for subscribers within the European Economic Area (EEA) and Switzerland, including changes to the subscription structure for new cloud suite customers in these regions.
New Office 365 Microsoft 365 and Teams Subscription Structure in the EEA and Switzerland
From October 1, 2023, in the European Economic Area (EEA) and Switzerland, Microsoft will offer a new lineup of Microsoft 365, Office 365, and Microsoft Teams subscriptions. The lines differ for Enterprise, small and medium business(SMB) and frontline subscriptions.
The currently subscribed customers can continue to use, renew and add seats to their current plans as usual, and the table below helps you to show the new lineup. The new subscribers who wish to provide their end users with Teams must purchase 2 subscriptions.
- EEA-specific Microsoft 365 or Office 365(no Teams) subscription
- Microsoft Teams EEA
| New Lineup |
|---|
| New EEA/Switzerland-specific suites without Teams named the same as the full suites plus “EEA (no Teams) |
| New EEA-specific standalone Teams SKU for Enterprise – Microsoft Teams EEA |
| End the sale of new subscriptions for all current Enterprise SKUs, including Teams (Office 365 E1/E3/E5 and Microsoft 365 E3/E5) within the EEA and Switzerland. |
| Maintain the availability of the existing SMB and Frontline suites, which include Teams (Business Basic/Standard/Premium, Microsoft 365 F1, Microsoft 365 F3, Office 365 F3), in conjunction with the newly introduced versions that do not include Teams. |
How will these Changes Affect Existing Customers?
Existing EEA and Switzerland-based customers can continue using their subscribed suites without disruption. Existing customers who wish to transition to the new EEA suites without Teams can do so at their Renewal points, ensuring a seamless switch to the new offerings. Customers currently subscribed to existing Office 365 E1/E3/E5 or Microsoft 365 E3/E5 suites with Teams have the following options.
- Continue using and renewing their current suites
- Add or remove seats as needed during their Renewal periods
How will these Changes Affect New Customers?
Starting from October 1, For New Commercial Customers in the EEA and Switzerland, Those who want to provide information workers with both Microsoft Teams and the value from existing Microsoft 365 E3/E5 or Office 365 E1/E3/E5 suites will need to purchase two SKUs. One E1/E3/E5 EEA (no Teams) suite and Microsoft Teams.
For New Small and Medium Business Customers in the EEA and Switzerland, Customers can choose between the existing Microsoft 365 Business Basic/Standard/Premium suites with Teams included and the new EEA (no Teams) versions.
For Frontline Workers in the EEA and Switzerland, customers can choose between the existing Microsoft 365 F1, Office 365 F3, and Microsoft 365 F3 suites, with Teams included and the new EEA (no Teams) versions.
Changes to Enterprise Suites
With the launch of the new commercial lineup, there will be a discontinuation of the sale of existing Enterprise suites, which come bundled with Teams, to new subscribers. Consequently, new customers in the EEA and Switzerland will no longer have access to Office 365 E1, Office 365 E3, Office 365 E5, Microsoft 365 E3, and Microsoft 365 E5 suites that include Teams. This change may have implications for potential customers in these regions.
- Current Subscribers – Continue using, renewing, and adding seats as usual – Consider switching to the new lineup on contract anniversary or renewal
- Net New Subscribers – Purchase an EEA-specific Microsoft 365 or Office 365 suite – Purchase Microsoft Teams EEA to provide end users with Teams.
Note! – This pricelist is subject to change and may vary by country and currency.
| Existing Suites with Teams | New offerings without Teams (after Oct. 1) | Pricing |
|---|---|---|
| No longer offered in EEA/Switzerland: Office 365 E1/E3/E5, Microsoft 365 E3/E5 | Office 365 E1 EEA (no Teams) Office 365 E3 EEA (no Teams) Office 365 E5 EEA (no Teams) Microsoft 365 E3 EEA (no Teams) Microsoft 365 E5 EEA (no Teams) | €7.40 €23.10 €39.50 €35.70 €57.70 |
| Microsoft Teams EEA | €5.00 |
Changes to Frontline Suites
The current Frontline suites will remain available in the newly introduced lineup. Customers in the EEA and Switzerland can select the existing Microsoft 365 F1, Office 365 F3, and Microsoft 365 F3 suites, which include Teams or opt for the new EEA-specific variants without Teams. The table below shows the information regarding the new lineup.
| Existing Suites with Teams | Pricing | New offerings without Teams (after October 1) | Pricing |
|---|---|---|---|
| Microsoft 365 F1 | €2.10 | Microsoft 365 F1 EEA (no Teams) | €1.60 |
| Office 365 F3 | €3.70 | Office 365 F3 EEA (no Teams) | €3.20 |
| Microsoft 365 F3 | €7.50 | Microsoft 365 F3 EEA (no Teams) | €7.00 |
Changes to Microsoft 365 Business Suites
The current Microsoft 365 Business Suites will remain available in the newly introduced lineup. Customers in the EEA and Switzerland can select the existing Microsoft 365 Business Basic, Microsoft 365 Business Standard, and Microsoft 365 Business Premium suites, which include Teams, or the option for the new EEA-specific editions that do not include Teams. The below table helps you to show the additional information regarding the new lineup.
| Existing Suites with Teams | Pricing | New offerings without Teams (after October 1) | Pricing |
|---|---|---|---|
| Microsoft 365 Business Basic | €5.60 | Microsoft 365 Business Basic EEA (no Teams) | €4.60 |
| Microsoft 365 Business Standard | €11.70 | Microsoft 365 Business Standard EEA (no Teams) | €9.70 |
| Microsoft 365 Business Premium | €20.60 | Microsoft 365 Business Premium EEA (no Teams) | €18.60 |
Upcoming Plans and Initiatives
The upcoming plans and initiatives include 3 stages: Unbundling Teams from Microsoft 365 and Office 365 Suites, Enhancing Interoperability Resources, and Enabling Third-party Hosting of Office Web Applications. The table below helps you to show the plans and initiatives.
| Initiative | Details |
|---|---|
| Unbundling Teams from Microsoft 365 and Office 365 Suites | Starting October 1, 2023, Teams will be removed from Microsoft 365 and Office 365 suites in the EEA and Switzerland. For core enterprise customers, these offerings will be sold without Teams at a reduced price (€2 less per month or €24 per year). Teams will still be available as a standalone purchase at €5 per month or €60 per year for new enterprise customers. Existing enterprise customers with a suite, including Teams, can choose to remain with their current suite or switch to a without-teams version. For small businesses and frontline workers, suites with Teams and without Teams options will be available, with the latter offered at a lower price. |
| Enhancing Interoperability Resources | Microsoft will enhance existing resources related to interoperability with Microsoft 365 and Office 365 apps and services. This will include better support and guidance for application developers, pointing them to existing APIs and extensibility options. New support resources will be created to address questions from customers and independent software vendors (ISVs). Additional content will be provided to explain data extraction from Teams and its use in other solutions. |
| Enabling Third-party Hosting of Office Web Applications | Microsoft will develop a mechanism to allow third-party solutions to host Office web applications. This will enable Teams competitors to utilize Microsoft’s functionality for hosting Office web apps within their apps and services. |
Important Microsoft 365 licensing changes in Europe – Microsoft Community Hub
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About the Author – Vidya is a computer enthusiast. She is here to share quick tips and tricks with Windows 11 or Windows 10 users. She loves writing on Windows 11 and related technologies. She is also keen to find solutions and write about day-to-day tech problems.