Microsoft Teams Licensing Changes

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While this won’t matter most of our clients (as most of our clients are using the Microsoft 365 Business Premium licenses that isn’t affected by this), we wanted to get this out there for folks who are at the point where their organization is too big for those licenses (as Microsoft 365 Business Premium is only allowed up to 300 folks) or they needed an Enterprise license for other reasons: Microsoft Teams is no longer included in various Microsoft Enterprise licensing SKUs.

This change only affects new subscriptions to the following Microsoft 365 licenses:

  • Microsoft 365 E3
  • Microsoft 365 E5
  • Office 365 E1
  • Office 365 E3
  • Office 365 E5

This is in response to anti-trust and bundling concerns raised by the Europeans  Commission (basically, Microsoft didn’t want to get fined or in trouble with the Europeans) and they decided to roll out the change globally.

The key point in this is that this is only for new subscriptions. So if you have an existing subscriptions that are affected, you will not be losing Teams. However, if you need to add or change to one of the above subscriptions, you’ll need to purchase the new Microsoft Teams Enterprise license, which runs $6.36/month with month-to-month commitment. Microsoft 365 Business Premium is still the product we recommend for most clients, but if you need the Enterprise SKU for one reason or another, make sure you know that Teams won’t be there without an additional purchase.

Read more on Microsoft’s Tech Community blog post.

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