Navigating the new Microsoft 365 Teams licensing: What you need to know

Posted on May 3, 2024 by Louise Howland

Microsoft has recently announced updates to its licensing structure for Microsoft 365, particularly regarding the inclusion of Teams. These changes reflect Microsoft’s strategy to offer more tailored solutions to meet diverse business needs. Here’s what you need to know about the new licensing updates, especially if you’re an existing client or considering becoming one.

Good news for existing clients

If you’re an existing Microsoft 365 customer, whether under Enterprise or Business plans, there’s great news. You can continue with your current plans, even upon renewal, with no end date currently set for this arrangement. This means if your business operations rely on the current features and pricing of Microsoft 365, including Teams, there will be no mandatory changes or disruptions.

Alternatively, if you want to consider options for changing to licence bundles without Teams, then this will be available to you at your next renewal.

Options for new clients

• Business plans
  New clients setting up Microsoft 365 tenants have fresh options to consider. You can now choose Business Plans either with or without Microsoft Teams. This change offers flexibility for smaller businesses or those not requiring the comprehensive communication tools that Teams provides. Microsoft has started advertising these options, allowing potential clients to compare and choose plans that best fit their organizational needs.
• Enterprise plans
  For those considering Enterprise-level solutions, the new structure is slightly different. New Enterprise clients will find that the default plans do not include Microsoft Teams. Should your business need Teams, it is available as an add-on. The Microsoft Teams Enterprise add-on SKU is priced at £4.30 per user per month, providing a cost-effective way to integrate this powerful collaboration tool into your enterprise solution.

No changes to Nonprofit plans

It’s important to note that there are no changes to the nonprofit plans. Microsoft continues to support nonprofits with the same offerings as before, which includes access to Teams without any alterations to the existing licences.

Continuity and choice

The overarching theme of Microsoft’s licensing update is to offer more freedom of choice regarding the inclusion of Teams in licensing plans, while retaining existing options for current clients.. Existing Microsoft 365 clients can rest easy knowing their services will continue uninterrupted. New clients have the flexibility to choose plans that align more closely with their specific business needs, with or without Microsoft Teams.

This approach not only ensures that businesses of all sizes and types can find a plan that suits them but also underscores Microsoft’s commitment to providing versatile, scalable solutions that grow with your business.

Whether you’re a longstanding Microsoft 365 client or considering setting up a new tenant, these updates are designed to keep your business equipped with the right tools without disruption.

For more information on the licensing changes please get in touch.