From this point on, “Office 365 E1/E3/E5 and Microsoft 365 E3/E5 suites with teams will no longer be sold to new subscribers,” per Microsoft’s announcement. That said, Licenses will be available “only to customers with existing licences that include Microsoft Teams as of April 1, 2024 outside the EEA and Switzerland” with access to Teams.
- Microsoft’s Official Version
Modifications to Microsoft Teams licences
Goodbye Bundled Teams: If you’re a new business signing up for Microsoft 365 after April 1, 2024 (outside of Europe and Switzerland), you won’t automatically get Teams included in your subscription anymore.
Hello Standalone Teams: The good news? Microsoft is now offering a standalone Teams license. This means businesses can now choose to subscribe to just Teams, without having to pay for the complete Microsoft 365 package.
Microsoft Teams Licensing Shift Explained
Recently, the European Commission investigated Microsoft 365’s software bundling practices. Following this investigation and insights revealed, Microsoft decided to unbundle Teams from its Microsoft 365 and Office 365 suites ( in the EU Economic Area and Switzerland).
This means that businesses can now purchase Microsoft suites without Teams, and yes, at a reduced price. And, they still have the option to buy Teams separately if they need it.
According to Microsoft, the change aims to increase customer choice flexibility and improve interoperability with third-party communication apps.
Microsoft Teams has rolled out a variety of enhancements:
Better Meeting Experience: Features like Intelligent Recap (using AI to automatically generate a comprehensive overview of your meeting) with personalized timeline markers. You can manage up to 9 video streams in web meetings to complement the meeting experience.
Collaboration Tools: Updates to the Loop components allow for dynamic collaboration. Also, component updates are available across various apps to ensure information consistency.
Customizable Interfaces: New settings in Teams align the app’s theme with the OS by default. Also, users now can adjust these settings directly.
Read: Customizable Greetings and Announcements for Call Queues and Auto Attendants
Here is a more concise breakdown:
| Feature | Description | Benefit |
| Branded Meetings (Teams Premium) | Create a professional first impression with elements i.e. custom meeting backgrounds, pre-join screens, invites reflecting your organization’s branding, etc. | Elevates professionalism and brand recognition. |
| Universal Meeting Join | Say goodbye to app switching! Now you can seamlessly join meetings directly in the Teams app. No matter if these are personal or professional invitations. | Simplifies meeting access and streamlines workflow. |
| Frosted Glass Backgrounds | Maintain privacy during video calls with the new frosted glass background effect. | Offers a more focused meeting environment. |
| Intelligent Meeting Recap (Teams Premium) | Get the most out of your meetings with AI-powered insights. Intelligent recap provides summaries and identifies key speakers while helping you easily revisit crucial points. | Boosts productivity and helps with knowledge retention. |
| People App | Finding colleagues just got easier! The new People app centralizes your contacts. Now, it’s simpler to connect and view info like Availability and Work Hours. | More team visibility and communication. |
| Streamlined User Profiles | Hovering over a user’s avatar now provides a quick overview of their status, schedule, and location. Access org charts directly from user profiles. | Enhances team awareness. |
| Simplified Settings | Settings, now consolidated into a dedicated app. It’s accessible from the “More options”. No more hunting through menus! | Improves user experience with a more intuitive interface. |
Microsoft 365 Licensing Changes: What You Need to Know
Continued Availability for Current Subscribers
For existing customers, the transition will be seamless. Existing subscribers to any Microsoft/Office 365 suite that includes Teams as of April 1, 2024, will continue to have access to their current plans. This includes the ability to add seats, renew, and upgrade under the same terms as available before these changes.
Options for Small Businesses and Frontline Workers
The updates also ensure that SMEs and frontline worker plans (Microsoft 365 Business Basic/Standard/Premium and Microsoft 365 F1/F3, Office 365 F3) remain available. These plans will coexist with the new versions without Teams. That means businesses can choose the solution that best meets their needs without disruption.
Business as Usual for Existing Customers
If you already have a Microsoft 365 Business Basic, Standard, Premium, Microsoft 365 F1/F3, or Office 365 F3 suite that includes Teams (as of April 1, 2024, outside Europe and Switzerland), you won’t be affected by these changes. You’ll continue to have access to Teams as part of your existing subscription.
Security & Compliance
New features in Microsoft 365 include enhancements like DNSSEC/DANE support for SMTP in Exchange Online, which bolsters email security.
Integration & Accessibility
The updates also focus on making Teams more integrated and user-friendly. Microsoft has simplified the addition of third-party storage services and enhanced audio/video controls for a smoother user experience.
What This Means for Your Business
Cost Savings Potential: For companies who rely heavily on Teams for communication but don’t use many other Microsoft 365 apps, this is a chance to save money. You can ditch the full suite and just get the standalone Teams license.
Flexibility and Scalability: The new model gives you more control over your Microsoft subscriptions. You can now customize your plan to your specific needs. Need just Teams? Go for it! Need Teams and some other apps? Build your own bundle! This flexibility is especially helpful for smaller businesses that might not require everything in the Microsoft 365 suite.
Before You Make the Switch
The standalone Teams option offers great flexibility. However, it’s important to consider your specific needs before making the jump:
Features & Functionality: The standalone Teams license offers core collaboration features. However, some advanced functionalities, like increased cloud storage or top-tier security, might only be available in specific M365 plans. If these features are crucial for your business, a bundled subscription might be a better fit.
Integration Concerns: Teams integrates seamlessly with other M365 apps like SharePoint and OneDrive. Switching to standalone Teams might lead to compatibility issues. It might also disrupt existing workflows if you heavily rely on these integrations.
User Management and Security: Businesses with strict user management and security protocols might find it easier to handle these within the unified framework of a bundled Microsoft 365 subscription. Standalone Teams could require separate accounts and security protocols, which is definitely more complex.
Storage and Licence Changes in Microsoft 365 2024
| Date | Change | Applies To | Action Needed |
| Feb 1, 2024 | OneDrive storage reduced to 100GB | Free Office 365 A1 users | Manage OneDrive storage or upgrade to the paid plan. |
| Aug 1, 2024 (or next renewal) | 100TB pooled storage | All Edu. tenants | Admins monitor storage use and adjust licenses accordingly. |
| Aug 1, 2024 | Office A1 Plus program retires | Edu institutes with Office A1 Plus | Choose free O365 A1 100GB or purchase discounted M365 Edu suites. |
| Feb 1, 2024 (no longer available) | From SA licenses for M365 | All Microsoft 365 customers | Better consider alternatives like Full USL for cloud migration. |
| April 1, 2024 (no longer available) | From SA licenses for Dynamics 365 | All Dynamics 365 users | Wait for Microsoft’s new promotional migration offer. |
Final Thoughts
As the SaaS market evolves, Microsoft’s licensing changes keep pace with the dynamic nature of tech compliance and customer needs. Businesses should view this as a recurring opportunity to optimize their tech stacks. It’s time they ensure compliance with global standards, perfectly suited to their unique demands.
Microsoft’s approach also sets a precedent for other tech giants. Basically, they emphasize the importance of flexibility and user choice in software suits. As we move forward, staying updated on these changes will be crucial for all Microsoft 365 and Office 365 users.
That said, driven by growing organization dependence on Microsoft Teams for effective, continuous collaboration and communication, demand has surged for specialized services that make the best of the offering.
Microsoft Teams Professional Services by WME
Notable among the providers of Teams services is WME. We offer Microsoft Teams Professional Services for optimized deployment, management, and use of Microsoft Teams within corporate environments.
The suite of services offered by WME covers a vast range of solutions aimed at augmenting Teams effectiveness. The first and very important service is the setup and customization, which involves setting up the Teams environment according to the organization’s needs. Our services are designed to be a helping hand down to the last part of the operation.
Training and Support: In addition to setting up the system, WME offers comprehensive training sessions to all organizational-level employees. The sessions are modeled in such a way that each and every user is at comfort and conversant with the features availed by Teams.
Optimization & Analytics: WME also offers its analytics services, ensuring that organizations are up to date with the overview of how their staff uses Teams. After analyzing the usage pattern and identifying areas for better performance, we offer insights that could enable better resource allocation, communication strategies, and collaboration in the teams.
Custom solutions: For organizations with custom requirements, WME offers deep integrative solutions built on the Microsoft Teams platform. WME develops custom bots, workflows, or applications in Teams, bringing the software development expertise to help you further extend and enhance Teams capabilities beyond what’s offered out of the box.
All in all, engaging WME professional services for Microsoft Teams would save organizations in IT overhead, help them experience better collaboration among teams, and ensure that all functionalities of Microsoft Teams are being duly used.
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