Beginning April 1, 2024, regions outside the EEA and Switzerland will see a significant shift, as Microsoft rolls out commercial versions of Microsoft 365 and Office 365 suites that exclude Teams, alongside a brand-new standalone offering for Teams.
Impacted audience: The changes will specifically affect Cloud Solution Provider (CSP) Direct Bill Partners, CSP Indirect Resellers, CSP Indirect Providers, and Licensing Solution Providers in these regions.
In response to concerns from the European Commission, Microsoft revamped the licensing structure for Microsoft 365, Office 365, and Teams within the European Economic Area (EEA) and Switzerland last year. Building on this initiative, the company is now set to implement a consistent licensing strategy on a global scale, aimed at minimizing customer confusion and enhancing the decision-making process for businesses worldwide.
Starting from April 1, 2024, Microsoft will unveil a restructured lineup of commercial Microsoft 365 and Office 365 suites outside of the EEA and Switzerland, which will not include Teams. Simultaneously, a separate Teams offering will be introduced specifically for Enterprise customers in those regions.
With this rollout, Microsoft will cease the sale of new subscriptions to the existing Microsoft 365 E3/E5 and Office 365 E1/E3/E5 Enterprise suites that include Teams across all distribution channels, including volume licensing (VL), Cloud Solution Provider (CSP), and Web Direct. Therefore, any new Microsoft 365 and Office 365 Enterprise customers in these regions will have to select from the new suite offerings tailored for their area. However, existing customers in these regions can continue their subscriptions to their current suites, including options for renewal, upselling, and adding licenses.
Commencing April 1, 2024, Microsoft is set to provide a fresh array of SKUs for Microsoft 365, Office 365, and Microsoft Teams, giving customers the flexibility to purchase Teams independently from the bundled Microsoft 365 and Office 365 options. Existing customers who currently utilize subscriptions can maintain their services, including renewing, adding licenses, and upgrading whenever necessary.
The new lineup does the following:
- Introduce a new standalone Teams SKU for Enterprise: Microsoft Teams Enterprise will be available as a separate entity.
- End the sale of net-new subscriptions to all existing Enterprise SKUs with Teams (Office 365 E1/E3/E5 and Microsoft 365 E3/E5 will no longer be sold to new subscribers).
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Continue to offer existing SMB and Frontline suites with Teamswhile introducing the new versions without Teams.
With the launch of the new commercial offering, the sale of current Enterprise suites that come with Teams to net new subscribers outside the EEA and Switzerland is set to conclude. Consequently, subscriptions for Office 365 E1, Office 365 E3, Office 365 E5, Microsoft 365 E3, and Microsoft 365 E5 suites equipped with Teams will no longer be available to new subscribers globally. Customers should be aware of the following impacts:
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Net new subscribers to Office/Microsoft 365 Enterprise suites outside the EEA and Switzerland will need to secure two SKUs: Microsoft Teams Enterprise in addition to either the Microsoft 365 suite (without Teams) or the Office 365 suite (without Teams).
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Existing customers can continue using their current SKUs, including options for renewal, upgrades, and adding licenses. Those who wish to switch to the new series of suites without Teams may do so at their contract anniversary or renewal date.
Refer to the Partner FAQ for scenarios where existing CSP customers might consider changing partners.
For Microsoft 365 Business and Frontline suites
Customers will have the option to choose between existing Microsoft 365 Business and Frontline suites with Teams and the newly introduced versions without Teams. The existing offerings include Microsoft 365 Business Basic, Microsoft 365 Business Standard, Microsoft 365 Business Premium, Microsoft 365 F1, Office 365 F3, and Microsoft 365 F3.
To gain more insights, please refer to the FAQ document and partner guidance materials available on the Modern Work Partner Portal. Additionally, a short training video has been developed to assist partners in communicating these changes to their customers outside of the EEA and Switzerland.
Get familiar with the complete details concerning these changes. The following resources offer essential information for addressing customer inquiries:
For any questions not covered in the FAQ, or to obtain clarification regarding pricing, offer availability, upgrades, migrations, and conversions, you can create a Support request using the Partner Center.
How will the new licensing structure for Microsoft Teams affect existing customers and their contracts?
**Interview with John Carter, Microsoft Licensing Expert**
**Interviewer:** Welcome, John! Thanks for joining us today. Microsoft is making some significant changes to its 365 offerings starting April 1, 2024. Can you give us a brief overview of what these changes entail?
**John Carter:** Absolutely! Beginning April 1, 2024, Microsoft will roll out commercial versions of Microsoft 365 and Office 365 suites outside of the EEA and Switzerland that will no longer include Teams. Instead, there will be a new standalone offering for Microsoft Teams specifically aimed at enterprise customers.
**Interviewer:** Interesting. So, who exactly will be impacted by these changes?
**John Carter:** The primary audience affected will be Cloud Solution Provider (CSP) Direct Bill Partners, CSP Indirect Resellers, CSP Indirect Providers, and Licensing Solution Providers in these regions. The changes are designed to streamline licensing and reduce confusion while enabling better decision-making for businesses.
**Interviewer:** It’s fascinating that these shifts are taking place globally after a designated facelift in Europe. What prompted this decision by Microsoft?
**John Carter:** Microsoft made adjustments last year in response to concerns from the European Commission about licensing structures within the EEA and Switzerland. This global strategy is meant to replicate those improvements and create a more consistent experience for users worldwide.
**Interviewer:** I see! As these new offerings are rolled out, what happens to the existing customers who currently utilize Microsoft 365 suites with Teams?
**John Carter:** Existing customers can continue to use their current subscriptions, including options for renewing, upselling, and adding licenses. However, they can choose to switch to the new offerings without Teams during their contract anniversary or renewal dates.
**Interviewer:** That’s quite a transition. Can you tell us a bit about the new standalone Teams SKU for enterprise users?
**John Carter:** Sure! The new Microsoft Teams Enterprise will be available as a separate SKU. This means that any new subscribers to Microsoft 365 or Office 365 outside the EEA and Switzerland will need to purchase both the suite (without Teams) and the new Teams offering to access team collaboration features.
**Interviewer:** That could complicate things for businesses that heavily rely on Teams. Do you think this separation could lead to increased costs for enterprises?
**John Carter:** It’s possible. Businesses will need to evaluate how they use these tools and what suites are most beneficial for their operations. It may increase costs for some, but it could streamline their offerings depending on their collaboration needs.
**Interviewer:** Thank you for shedding light on these changes, John. As we approach this date, it will be crucial for customers to understand the impact on their operations.
**John Carter:** Absolutely. Communication will be key to ensuring that businesses make informed decisions moving forward.
**Interviewer:** Thanks again for your insights, John. We appreciate your time!
**John Carter:** Thank you for having me!
