Microsoft 365 and Teams Licensing Changes in Europe

Microsoft is implementing significant modifications to the licensing and availability of Microsoft 365 and Microsoft Teams in the European Economic Area (EEA) and Switzerland. These changes are in response to feedback from the European Commission (EC) and are aimed at addressing the EC’s concerns while minimizing disruption for customers and partners. Starting from October 1, 2023, a new range of commercial Microsoft 365 and Office 365 suites will be introduced in these regions, excluding Teams. Additionally, a new standalone Teams offering for Enterprise customers will be introduced. In this blog post, we will delve into these changes. For more information, see the full breakdown of SKU and price changes.

What’s Changing?

1. New EEA and Switzerland-Specific Suites without Teams:
   Microsoft will introduce new suites in the EEA and Switzerland that do not include Microsoft Teams. These suites will retain the same names as the existing full suites but with the addition of “EEA (no Teams)”.
2. New EEA-Specific Standalone Teams SKU:
   A new standalone Teams SKU called “Microsoft Teams EEA” will be introduced for Enterprise customers in the EEA.
3. End of Sale for Existing Enterprise SKUs with Teams:
   Microsoft will cease the sale of new subscriptions to all existing Enterprise SKUs that include Teams, such as Office 365 E1/E3/E5 and Microsoft 365 E3/E5, in the EEA and Switzerland.
4. Continuation of SMB and Frontline Suites with Teams:
   Existing SMB and Frontline suites that include Teams, such as Business Basic/Standard/Premium, Microsoft 365 F1, Microsoft 365 F3, and Office 365 F3, will continue to be offered alongside the new versions without Teams.

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Impact on Enterprise Suites:

With these changes, current subscribers to Enterprise suites in the EEA and Switzerland may be impacted as follows:

• Continuation of Current Plans:
  Customers who are currently subscribed to any of the affected suites can continue to use, renew, and add seats to their existing plans as usual.
• Transition to New Lineup:
  If customers wish to switch to the new lineup, they can do so on their contract anniversary or renewal. This transition may involve purchasing two SKUs: one EEA-specific Microsoft 365 or Office 365 suite and Microsoft Teams EEA.

Impact on Frontline Suites:

For Frontline suites, the existing suites with Teams will coexist with the new lineup. Customers in the EEA and Switzerland can choose between the existing suites with Teams or the new EEA-specific versions without Teams.

Impact on Microsoft 365 Business Suites:

For Microsoft 365 Business suites, the existing suites with Teams will also coexist with the new lineup. Customers in the EEA and Switzerland can choose between the existing suites with Teams or the new EEA-specific versions without Teams.

In conclusion, these changes in licensing and availability of Microsoft 365 and Microsoft Teams in the EEA and Switzerland reflect Microsoft’s commitment to addressing feedback from the European Commission while providing customers with options to adapt to the new lineup that best suits their needs.