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Licensing
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Realigning global licensing for Microsoft 365

Learn about changes to Microsoft 365, Office 365, and Microsoft Teams licensing effective April 1, 2024.

April 1, 2024

Last year Microsoft updated the way Microsoft 365, Office 365, and Teams were licensed in the European Economic Area (EEA) and Switzerland. Now we are announcing our plan to extend that approach worldwide.

Globally consistent licensing helps ensure clarity for customers and streamline decision making and negotiations. To that end, we 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 today, we 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. Additional details follow below.

Changes to Enterprise Suites:

With today’s introduction of the new commercial lineup outside the EEA and Switzerland,  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. Here is how customers may be impacted: 

  • 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)

Pricing*

Office 365 E1/E3/E5 and Microsoft 365 E3/E5 suites
Office 365 E1 (no Teams)
$7.75

with Teams no longer sold to new subscribers.
Office 365 E3 (no Teams)
$20.75

Available only to customers with existing licenses
Office 365 E5 (no Teams)
$35.75

that include Microsoft Teams as of April 1, 2024
Microsoft 365 E3 (no Teams)
$33.75

outside the EEA and Switzerland.
Microsoft 365 E5 (no Teams)
$54.75
 
New Microsoft Teams Standalone
Pricing*
 
Microsoft Teams Enterprise
$5.25

*This pricelist pricing is subject to change and may vary by country and currency.

Changes to Frontline suites:

Current Frontline suites will coexist with the new lineup. Customers will be able to choose between the existing Microsoft 365 F1, Office 365 F3, and Microsoft 365 F3 suites with Teams included, or the new versions of those suites without Teams. See details of the new lineup on the table below:

Existing Suites with Teams

Pricing*

New suites without Teams (starting Apr. 1)

Pricing*

Microsoft 365 F1
$2.25
Microsoft 365 F1 (no Teams)
$1.75

Office 365 F3
$4.00
Office 365 F3 (no Teams)
$3.50

Microsoft 365 F3
$8.00
Microsoft 365 F3 (no Teams)
$7.50

*This pricelist pricing is subject to change and may vary by country and currency.

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

Pricing*

New suites without Teams (starting Apr. 1)

Pricing*

Microsoft 365 Business Basic
$6.00
Microsoft 365 Business Basic (no Teams)
$4.75

Microsoft 365 Business Standard​
$12.50
Microsoft 365 Business Standard (no Teams)
$10.25

Microsoft 365 Business Premium​
$22.00
Microsoft 365 Business Premium (no Teams)
$19.75

*This pricelist pricing is subject to change and may vary by country and currency.

FAQ

  • These changes are intended to realign our 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 and the accompanying licensing details on Licensing News.

  • Existing customers who already subscribe to Microsoft 365 or Office 365 suites with Teams will have new options. They may continue to use, renew, upgrade, and otherwise adjust their subscriptions as before. They may also now switch to suites without Teams at anniversary/renewal or add new user subscriptions to suites without Teams or to the new Teams standalone at any time (including alongside suites with Teams).

  • Starting today in regions outside the EEA and Switzerland:

    • New commercial customers who wish to provide information workers with both Microsoft Teams and the value in existing Microsoft 365 E3/E5 or Office 365 E1/E3/E5 suites will need to purchase two SKUs: one E1/E3/E5 (no Teams) suite and Microsoft Teams Enterprise.

    • New small and medium business customers will be able to choose between the existing Microsoft 365 Business Basic/Standard/Premium suites with Teams or the new (no Teams) versions of those suites.

    • For Frontline workers, customers will be able to choose between the existing Microsoft 365 F1, Office 365 F3, and Microsoft 365 F3 suites with Teams included or the new (no Teams) versions of those suites.

  • No. All the EEA-specific offerings introduced in October 2023 will remain available alongside the offerings for other regions announced above. Licensing details for the EEA and Switzerland are available here.

  • The changes announced above apply only to commercial SKUs (Enterprise, Business, and Frontline). Consumer, Academic, US Government, and Nonprofit-specific SKUs are not currently impacted.

  • Microsoft Teams Enterprise provides meetings, chat, calling (VOIP), and collaboration without any limitation on seat numbers and a 1000-seat cap on meeting attendees.

    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.

  • No. The new “no Teams” suites and Teams Enterprise are intended for purchase by customers with enrollments in countries outside the EEA and Switzerland, from non-EEA pricelists, for deployment on non-EEA/Switzerland tenants out of datacenters outside the EEA and Switzerland.

  • Multinational organizations will be able to purchase “EEA (no Teams)” SKUs to cover enrollments and tenants inside the EEA/Switzerland, and non-EEA “no Teams” SKUs to cover enrollments and tenants outside the EEA/Switzerland.

  • Retaining a separate structure in the EEA is intended to minimize change for EEA customers while realigning the available options worldwide.