Microsoft 365 Europe: Licensing Changes, Team Exclusions, Cost Increase
M365 Licensing
Oct 12, 2023 3:00 PM

Microsoft 365 Europe: Licensing Changes, Team Exclusions, Cost Increase

by HubSite 365 about Szymon Bochniak (365 atWork)

Microsoft 365 atWork; Senior Digital Advisor at Predica Group

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Unpacking the new Microsoft 365 Licensing changes in Europe: Teams are now excluded with increased overall costs.

Microsoft is changing its Microsoft 365 and Office 365 subscriptions within the European Economic Area and Switzerland for new customers, resulting in higher costs. These exclusionary changes will significantly affect Teams, as they will be segregated into a separate plan. More information can be found here.

The alterations include updates to how Microsoft 365, Office 365, and Microsoft Teams are licensed in the context of the European Commission's concerns. Microsoft is taking steps to create a more customer-focused approach, making changes that reflect the evolving demands of the market while simultaneously addressing regulatory issues.

To adapt to customers' changing needs, Microsoft is introducing a new lineup on October 1, 2023. This will primarily consist of commercial Microsoft 365 and Office 365 suites that exclude Teams for the EEA and Switzerland regions. Additionally, a new standalone Teams offering for Enterprise customers will be rolled out. These changes will spare currently subscribed customers from additional expenses.

To maintain the business suites' relevance, the sale of current Enterprise suites that include Teams to net new subscribers will end. Moving forward, to provide their end users with Teams, new subscribers to Office/Microsoft 365 Enterprise suites will require the purchase of two different SKUs: one for the EEA-specific Microsoft 365 or Office 365 suite and another for Microsoft Teams EEA.

The introduction of this new lineup presents some implications for current subscriptions. Existing subscribers will have new options and can continue to use, renew, and add seats to their current plans. However, if they wish to switch to the new lineup, this can only happen on their contract anniversary or renewal. Thus, subscribers are advised to doing careful cost-benefit analyses to understand their options fully.

Deeper Insight into Microsoft's Licensing Changes

Microsoft's move to change its licensing approach in Europe ushers in an era of unprecedented transformation. The decision to exclude Teams from the Microsoft 365 and Office 365 subscriptions for new customers indicates a strategic shift in the company's business model. The forthcoming changes reflect Microsoft's effort to keep pace with evolving workplace dynamics and address rising concerns by the European Commission.

From a customer standpoint, the announcement brings mixed feelings. Current customers may continue to enjoy their subscriptions without adjustments. However, new customers have to dig deeper into their pockets to access the advanced collaborative tool, Teams. The move is not only a test of the market response to such changes but also a reflection of Microsoft's commitment to comply with regulatory authorities.

The alteration marking the end of including Teams in the sale of Enterprise suites to new subscribers signifies a crucial pivot in Microsoft's business strategy. It places Teams as a standalone product, which could be seen as a move to strengthen the product's market position.

Finally, Microsoft's changes point to the broader transformation that's happening in today's digital workplace. As more businesses move towards hybrid working models, tools like Teams become indispensable for smooth operations. Thus, the decision to segregate MS Teams presents new growth opportunities for the product.

Learn about Microsoft 365 Licensing Changes in Europe: Teams Excluded, Higher Costs! What You Need to Know

 

The article translates a recent YouTube video that highlights important changes in the Microsoft 365 Authorization in Europe. Let's dive deep into what exactly these alterations are and how they are geared to affect new users in the European Economic Area (EEA).

From October 2023, Microsoft will implement modifications in how Microsoft 365 and Office 365 subscriptions function in the EEA. Specifically, Microsoft Teams will no longer be part of these subscriptions and will require a separate plan. Overall, this transformation will lead to an increase in costs for new subscribers.

These alterations are a result of Microsoft's desire to adapt and evolve with changing times and needs of their customers. They are also a response to feedback received from governments and competitors.

Moving away from the inclusion of Teams in their subscriptions is just one of the ways that Microsoft aims to address concerns raised with the European Commission while remaining focused on customer needs.

So what does this mean for users of these platforms? Being aware of these changes is crucial. For instance, the sale of current Enterprise suites that include Teams to new subscribers will cease. As a result, various Office 365 suites that currently include teams will now no longer be available for new subscribers within the EEA and Switzerland.

However, it's not all doom and gloom for those currently subscribed to any of the suites in question. They will have new options available for them. They can continue to use, renew, and add seats to their current plans as usual. Alternatively, if they wish to switch to the new lineup, they can do so on their contract anniversary or renewal.

New subscribers, on the other hand, who wish to provide their end users with Teams, will need to purchase two separate plans.

 

Changes are also coming for existing Frontline suites, which will need to coexist with the new lineup. Customers in the EEA and Switzerland will now have a choice between existing suites with teams, or the new, region-specific versions of these suites without Teams.

Existing customers who want to switch to the new EEA (no Teams) suites can do so at Anniversary or Renewal. For new commercial customers, who wish to provide their workers with both Microsoft Teams and the existing features of Microsoft 365 E3/E5 suites, will need to purchase two bundles: one EEA suite without Teams and Microsoft Teams.

Suffice to say, these alterations are going to require current, and potential users to evaluate their needs and make a choice that suits them best. With the landscape continuously changing, it's essential to stay informed so you can make the best decisions for your needs. For more detailed information about these changes, check out the formal announcement on the Microsoft website.

Given the complexity and potential impacts of these changes, it's critical to be well-versed and informed to make the best decisions for your needs. Depending upon your organization size and requirements, you might want to explore training courses on understanding Microsoft 365 and Office 365 subscription plans, learning about Microsoft Teams, and how to manage a Teams environment. Look for courses that offer comprehensive understanding of these platforms and hands-on experience with Teams and its integration with the suite of Microsoft products.

More links on about Microsoft 365 Licensing Changes in Europe: Teams Excluded, Higher Costs! What You Need to Know

Microsoft 365 Licensing Changes in Europe
2 hours ago — Teams will be excluded to separated plan and summary costs will increase. ⭐

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