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On April 1, 2024, Microsoft announced changes to Microsoft 365 Licensing for 365 (M365) suites. Initially in the European Economic Area (EEA), these changes are now global. This restructuring will impact our managed service end users. 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 with affected suites can maintain, renew, upgrade, or expand plans. They can transition upon contract renewal. Existing customers can continue, renew, or switch subscriptions. They can add new user subscriptions at any time.
HOW WILL THESE CHANGES AFFECT NEW CUSTOMERS?
- Commercial Customers: New customers needing both Microsoft Teams and existing Microsoft 365 Licensing 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 can opt for existing Microsoft 365 F1, Office 365 F3, and Microsoft 365 F3 suites with Teams included, or the new versions without.
CHANGES TO MICROSOFT 365 BUSINESS SUITES: Microsoft 365 Business suites will coexist with the new lineup. Customers can select existing Microsoft 365 Business suites with or without Teams, offering flexibility in their choices.
Microsoft Teams Enterprise vs. Microsoft Teams Essentials
- Microsoft Teams Enterprise: Provides meetings, chat, calling (VOIP), and collaboration without seat limitations. (1000-seat cap on meeting attendees)
- Microsoft Teams Essentials: Offering meetings, chat, calling (VOIP), and collaboration for up to 300 users. (300-seat meeting attendee cap)
Microsoft 365 Licensing changes simplify options for our managed service end users, offering clearer licensing choices. For more detailed information or if you have any questions or concerns, please reach out to our team.
Braver Technology Solutions | WeMakeITWork@BraverTechnology.com
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