In This Article |
On April 1, 2024, Microsoft announced changes to Microsoft 365, Office 365, and Microsoft Teams licensing:
NOTE The announcement does not affect Nonprofit, Academic, and US Government products. Currently, this only affects Microsoft's commercial (Enterprise, Business, and Frontline) products. Additionally, the "end of sale" for the Office 365 and Microsoft 365 base plans do not affect existing Microsoft 365 customers. It only affects customers that are new to Microsoft 365. |
Microsoft has created the following base plan products that do not include Teams:
Enterprise
Frontline
SMB
Microsoft has introduced Microsoft Teams Enterprise, which is a standalone product for Teams, and can be paired with the above base plans that do not include Teams.
After April 1, 2024, the following base plan products that include Teams are no longer available for net new Microsoft 365 customers:
New Microsoft 365 customers must purchase the above new base plans that don't include Teams, and then pair them with the new Microsoft Teams Enterprise product.
NOTE Microsoft is not retiring the following Microsoft 365 Business (SMB) and Frontline Worker products:
You can still purchase these products, or if you need the flexibility, you can purchase the (No Teams) version of the products, and pair them with Microsoft Teams Enterprise. |
Existing customers with O365/M365 base plans that include Teams can continue to use them as intended, and may continue to:
The changes are intended to realign Microsoft's global subscription product structure to match the changes made in Europe, which occurred in 2023. For more information, read Microsoft's official announcement, and Microsoft's accompanying licensing details article. |
Starting April 1, 2024,
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Existing customers are customers with an active license for any Microsoft 365/Office 365 base plan with Teams prior to April 1, 2024. However, if at any time the customer no longer has any active licenses to a Microsoft 365/Office 365 base plan with Teams, they will no longer be considered an existing customer. |
For existing customers, the introduction of new base plans without Teams adds new subscription license options to their current purchasing channel without removing their prior options. Existing customers may continue to:
Additionally, existing customers may:
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Yes. For example, an existing customer could have the following mix of products:
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No, you cannot purchase a net new subscription (with a new term) for any of the end of sale products. You will need to purchase one of the new base plans without Teams. |
Microsoft's changes are intended to realign their global subscription structure following changes made in Europe in 2023. The different approach taken in Enterprise vs. SMB and Frontline was a compromise intended to address concerns raised with the European Commission while limiting disruption for customers, partners, and sellers. |
No. The changes announced on April 1, 2024 apply only to commercial SKUs (Enterprise, Business, and Frontline). Consumer, Academic, US Government, and Nonprofit-specific base plans are not currently impacted. |