Microsoft 365 Licensing Changes: What You Need to Know

This month we are announcing the launch of a new edition of our SecureByte Gazette that will focus specifically on Microsoft. Expect a monthly run down of the latest changes and how it will impact your organization. For more day to day updates, we suggest following our Microsoft Specialist, Alex Burton.

Microsoft has announced significant changes to its Microsoft 365 (M365) and Office 365 licensing models. Starting August 1, 2024, Microsoft Teams will no longer be including by default in new M365 and Office 365 subscriptions. This decision affects businesses worldwide, aligning with changes previously made in Europe. Here's everything you need to know about this transition, why it's happening, and what steps you need to take.?

Why is Microsoft Making This Change??

The move to separate Teams from M365 and Office 365 subscriptions is part of Microsoft's effort to comply with regulatory requirements and offer more flexibility to customers. The European Commission had raised concerns about bundling Teams with Office products, leading Microsoft to unbundle Teams in the European Economic Area (EEA) and Switzerland in 2023. Now, Microsoft is extending this approach globally.?

By offering Teams as a standalone product, Microsoft aims to provide clearer pricing and more options for businesses of all sizes. This change is designed to streamline decision-making and negotiations, ensuring customers can tailor their subscriptions to better fit their needs.?

Timeline of Changes?

• August 1, 2024: New M365 and Office 365 subscriptions worldwide will no longer include Teams.?

• Existing customers with M365 or Office 365 subscriptions that include Teams can continue using their current plans. They will have the option to renew, upgrade, or add seats to these plans.?

• New customers or those who wish to switch plans will need to purchase Teams separately.?

What This Means for Your Business?

For current subscribers, the immediate impact is minimal. Your existing subscriptions remain unchanged until you decide to renew or modify them. However, planning for the future is crucial. Here's a breakdown of how the changes will affect different customer segments:?

Enterprise Customers?

• Current Subscribers: You can continue using, renewing, or upgrading your current M365 or Office 365 plans that include Teams.?

• New Subscribers: If you sign up for new M365 or Office 365 plans after July 1, 2024, you'll need to purchase Teams separately.?

Small and Medium Businesses (SMBs)?

• Business Suite Licenses: The M365 Business suite of licenses (Business Basic, Business Standard, and Business Premium) will still include Teams by default. SMBs using these plans will not be forced to purchase Teams separately.?

• Standalone Teams: If you choose a plan without Teams, you can purchase Teams as a standalone product to meet your collaboration needs.?

Frontline Workers?

• Flexible Options: Frontline worker plans, such as M365 F1, F3 and Office 365 F3, will be available with or without Teams. Choose the plan that best suits your operational requirements.?

Action Items for Your Business?

1. Review Current Subscriptions: Assess your current M365 or Office 365 subscriptions. If they include Teams, decide if you want to continue with these plans or explore the new offerings.?
2. Plan for the Transition: If you're considering switching to new plans without Teams, evaluate the standalone Teams options available and how they fit into your budget and operational needs.?
3. Communicate with Stakeholders: Inform your IT department and relevant teams about these changes to ensure a smooth transition. Discuss how the new licensing model might affect your collaboration workflows.?
4. Budget Adjustments: Factor in potential changes to your IT budget, considering the cost of separate Teams subscriptions if needed.?
5. Stay Updated: Keep an eye on Microsoft's announcements and updates regarding these changes. Ensure you have the latest information to make informed decisions.?

Benefits of the New Licensing Model?

• Flexibility: Choose the best combination of productivity tools and collaboration platforms for your business.?

• Cost Transparency: Clearer pricing structures help you understand exactly what you're paying for and allow better budget management.?

• Regulatory Compliance: Aligning with global regulatory standards ensures that your business remains compliant with evolving legal requirements.?

?Conclusion?

Microsoft's decision to unbundle Teams from M365 and Office 365 subscriptions marks a significant shift in its licensing strategy. While this change might require some adjustments, it ultimately offers businesses greater flexibility and transparency. By understanding the reasons behind this change and preparing your organization accordingly, you can make the most of the new licensing options and continue to leverage Microsoft's powerful productivity and collaboration tools.?

As your trusted Microsoft partner, Logically is here to help you navigate this transition and optimize your IT investments. We can assist you with:?

• Evaluating your current and future needs for Teams and other Microsoft products.?
• Comparing and selecting the best plans and bundles for your business size and industry.?
• Purchasing and renewing licenses at competitive prices and with flexible payment options.?
• Implementing and managing Teams and other Microsoft solutions across your devices and platforms.?
• Providing ongoing support and training to ensure your teams are productive and collaborative.?

Don't miss this opportunity to transform your business with Microsoft's leading-edge tools and Logically's expert guidance. Contact us today to get started.?

Relevant Resources?

• Logically's Microsoft Solutions: https://go.logically.com/microsoft-solutions
• Microsoft Windows Server 2012 & 2012 R2 Refresh Brief: https://go.logically.com/microsoft-windows-server-2012-r2-brief
• Maximizing AI Potential in Your Organization with Microsoft Copilot: https://logically.com/blog/maximize-ai-potential-with-microsoft-copilot/
• 7 Ways to Apply Zero-Trust Principles Before Launching Microsoft 365 Copilot: https://logically.com/blog/apply-zero-trust-before-microsoft-copilot/

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