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On April 1, 2024, Microsoft announced significant changes to the Microsoft 365 (M365) suites, particularly affecting how Teams is packaged. Initially rolled out in the European Economic Area (EEA) due to regulatory considerations, these changes are now being implemented globally. This restructuring will impact our managed service end users, so here’s what you need to know:

  • New Microsoft 365 Suites: Microsoft is introducing new suites of Microsoft 365 and Office 365 that no longer include Teams. This means Teams will now be available as a separate purchase option.
  • Standalone Teams Offering: Enterprise customers will have the option to purchase a new standalone Teams SKU, providing more flexibility in acquiring Teams.
  • End of Sale for Existing SKUs with Teams: Net-new subscriptions to existing Microsoft 365 E3/E5 and Office 365 E1/E3/E5 Enterprise SKUs with Teams will no longer be available across all channels (volume licensing, CSP, and Web Direct).
  • Continued Support for Existing Customers: Current subscribers can continue using their existing suites, including renewal, upsell, and license additions. They can also transition to the new lineup upon contract renewal.
  • Impact on Enterprise Customers: New subscribers requiring Teams will need to purchase Microsoft Teams Enterprise along with Microsoft 365 or Office 365 suites without Teams.
  • Availability for SMB and Frontline Suites: Existing Microsoft 365 Business and Frontline suites with Teams will remain available alongside the new lineup, offering the choice to use suites with or without Teams.

HOW WILL THESE CHANGES AFFECT EXISTING CUSTOMERS?

Customers currently subscribed to any of the affected suites will have several new options available. They can maintain, renew, upgrade, or expand their existing plans as usual. Alternatively, if they prefer to transition to the new suite lineup, they can do so upon their contract anniversary or renewal. Existing customers with Microsoft 365 or Office 365 suites that include Teams can continue, renew, upgrade, or modify their subscriptions as needed. They also have the flexibility to switch to suites without Teams during renewal or add new user subscriptions to suites without Teams or the standalone Teams subscription at any time.

HOW WILL THESE CHANGES AFFECT NEW CUSTOMERS?

  • Commercial Customers: New customers seeking both Microsoft Teams and existing Microsoft 365 E3/E5 or Office 365 E1/E3/E5 suites will require two SKUs: one E1/E3/E5 suite without Teams and a separate subscription for Microsoft Teams Enterprise.
  • Small and Medium Business Customers: SMB customers have the option to select from existing Microsoft 365 Business suites with Teams included or the new versions without Teams.
  • Frontline Workers: Customers serving frontline roles can choose between existing Microsoft 365 F1, Office 365 F3, and Microsoft 365 F3 suites with Teams or opt for the new versions without Teams.

IMPACT ON CONSUMER, ACADEMIC, US GOVERNMENT, OR NONPROFIT SUITES: These changes specifically apply to commercial SKUs (Enterprise, Business, and Frontline). Consumer, Academic, US Government, and Nonprofit-specific SKUs remain unaffected.

CHANGES TO ENTERPRISE SUITES: 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.

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.

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.

Microsoft Teams Enterprise vs. Microsoft Teams Essentials

  • Microsoft Teams Enterprise: Provides meetings, chat, calling (VOIP), and collaboration without seat limitations and a 1000-seat cap on meeting attendees.
  • Microsoft Teams Essentials: Offers meetings, chat, calling (VOIP), and collaboration for customers worldwide with up to 300 users and a 300-seat meeting attendee cap.

These changes are designed to simplify licensing and provide clearer options for our managed service end users. For more detailed information or if you have any questions or concerns, please reach out to our team.

Braver Technology Solutions | WeMakeITWork@BraverTechnology.com
Boston 617.315.8515 | Taunton 508.824.2260 | Providence 401.484.7900

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