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Recent Changes to Microsoft 365 and Microsoft Teams Licenses

We are here to help you understand the recent Microsoft licensing changes, break down these changes, their implications, and how they might impact your business.

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Have you heard about the changes to Microsoft licences that have been released in April 2024? Microsoft licensing models we need for our favourite business productivity tools have had significant adjustments to their licensing structure for Microsoft 365 and Microsoft Teams.

Microsoft's Global Licensing Realignment

On April 1, 2024, Microsoft announced their new licensing approach for Microsoft 365, Office 365, and Teams.

This approach aims to provide clarity for customers and streamline decision-making.

Let’s dive into the specifics:

New setup of Microsoft Commercial Suites

Outside of the European Economic Area (EEA) and Switzerland, Microsoft is introducing a new lineup of commercial Microsoft 365 and Office 365 suites that do not include Teams.

This change affects the following suites:

  • Office 365 E1, E3, and E5
  • Microsoft 365 E3 and E5

For existing subscribers to these suites, there are options:

  1. Will Microsoft licences affect existing Microsoft Plans?: If you’re already subscribed to any of the affected suites, you can continue using, renewing, upgrading, and adding seats to your current plans as usual with no effect to your business.

  2. What happens when you switch to the new  Microsoft suite: Alternatively, you can switch to the new Microsoft suite on your contract anniversary or renewal. The new suite requires purchasing two SKUs (stock-keeping units): one Microsoft 365 (no Teams) or Office 365 (no Teams) suite and one Microsoft Teams Enterprise.

Here’s a quick comparison of the existing suites which already include Teams and the new suites without Teams:

Existing Suites with TeamsNew Suites without Teams (after Apr. 1)
Microsoft 365 Family: £7.99*Office 365 E1 (no Teams) – £7.75*
Microsoft 365 Business Basic: £7.75

Office 365 E3 (no Teams) – £20.75*

(available only to existing license holders)

 Office 365 E5 (no Teams) – £35.75*
 Microsoft 365 E3 (no Teams) – £33.75*
 Microsoft 365 E5 (no Teams) – £54.75*

*Pricing subject to change and may vary by country and currency.

Why have Microsoft switched to the new Teams standalone offering?

Microsoft wants to make things clearer for everyone. They’re aligning their rules globally so that everyone knows what they’re getting.

If you’re already using a plan that includes Teams, there is no need to worry, You can keep using it. But if you’re new to the game, you might need to choose a plan without Teams and then add Teams separately.

Current Frontline suites will continue to coexist with the new suites. Customers can choose between the existing Microsoft 365 F1, Office 365 F3, and Microsoft 365 F3 suites (with Teams included) or opt for the new versions of those suites without Teams.

Our goal as you navigate these changes is to provide you with the knowledge and support to ensure your team are setup with the correct Microsoft licencing and inform you of these recent changes.

Evaluate your organisation’s needs, consider the new licensing options, and ensure a smooth transition.

If you have any questions, reach out to a trusted IT support provider or refer to Microsoft’s official documentation

Disclaimer: The information provided in this blog post is based on Microsoft’s official announcements as of April 1, 2024. Pricing and details may be subject to change.

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Anne-Marie Marketing Communications Manager

Anne-Marie Blazdell

Anne-Marie is Syn-Star’s dedicated Marketing Manager. Her drive for success is matched only by her compassion for the team. Always on hand with useful insights, she is a warm character who is valued by her department. 

Qualifications: BA (hons) Graphic Design

In-house training: HubSpot SEO, Sales, Adobe Suite

Favourite movie: Love Actually

Favourite artist: ABBA

Favourite food:  Gü Cheesecake

Contents

Anne-Marie Marketing Communications Manager

Anne-Marie Blazdell

Anne-Marie is Syn-Star’s dedicated Marketing Manager. Her drive for success is matched only by her compassion for the team. Always on hand with useful insights, she is a warm character who is valued by her department. 

Qualifications: BA (hons) Graphic Design

In-house training: HubSpot SEO, Sales, Adobe Suite

Favourite movie: Love Actually

Favourite artist: ABBA

Favourite food:  Gü Cheesecake

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