From the 1st April 2025, Microsoft is implementing significant changes to its Teams licencing structure. These updates are designed to provide more flexibility and streamline decision-making for commercial customers. Here’s a detailed look at what’s changing and how it might impact your costs.

Overview of changes to Microsoft Teams Licensing

Starting from 1st April 2025, Microsoft will introduce a new lineup of Microsoft 365, Office 365, and Microsoft Teams SKUs worldwide. The most notable change is the separation of Teams from the Microsoft 365 and Office 365 suites. This means that customers will now have the option to purchase Teams as a standalone product, separate from the other Microsoft 365 and Office 365 services

The new lineup includes:

  • Microsoft 365 E3/E5 (no Teams)
  • Office 365 E1/E3/E5 (no Teams)
  • Microsoft 365 Business Premium, Business Standard, Business Basic (no Teams)
  • Microsoft 365 F1/F3, Office 365 F3 (no Teams)
  • Microsoft Teams Enterprise (standalone SKU for Enterprise customers)

Existing customers who wish to continue using the current SKUs that include Teams can do so, including renewals, license adds, and step-ups (moving from a lower tier service to higher one – such as an E3 to E5 upgrade)

Impacts on Costs

While overall costs aren’t actually increasing – the price of the No Teams licence has been reduced by the cost of the Teams Add-on the separation of Teams from the Microsoft 365 and Office 365 suites will have several cost implications for you:

  1. Flexibility in Licensing: Organisations can now choose to purchase Teams separately, which may be beneficial for those who do not require the full suite of Microsoft 365 or Office 365 services. This flexibility allows for more tailored licensing options that can better meet the specific needs of different departments or teams
  2. Potential Cost Savings: For organisations that do not need the full suite of services, purchasing Teams separately could result in cost savings. By only paying for the services you need, you can optimise yourIT budgets and reduce unnecessary expenses

Impact on Existing Contracts: Existing customers who wish to continue using their current SKUs that include Teams can do so. However, it is important to review the terms of existing contracts and understand how the new licensing options might affect future renewals and upgrades

The upcoming changes to Microsoft Teams licensing from 1st April 2025 offer you the opportunity for greater flexibility and the potential for cost savings. By understanding these changes and evaluating their impact on your organisation, you can make informed decisions that optimise your IT budget and ensure you have the right tools to support your team’s collaboration and productivity – speak to us and we can give you impartial advice on the best way forwards, any potential savings or cost increase or click here to find out more –https://beckett-tele.com/clobba-understan…ce-and-licencing/