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Changes to Microsoft 365, Office 365 and Microsoft Teams Licensing

As of 1 April, 2024, Microsoft has updated its licensing structure for Microsoft 365, Office 365 and Microsoft Teams. It has introduced Microsoft 365 and Office 365 suites that don’t include Teams, in addition to a new standalone Teams offering. Customers with existing subscriptions, like Business Premium, can continue to use the product with Teams included. 

The new lineup is as follows: 

  • New suites without Teams, which are named the same as the existing suites plus "(no Teams)." The "no Teams" suites will be in the following offers: 
    • Microsoft 365 E3/E5, Office 365 E1/E3/E5
    • Microsoft 365 Business Premium, Business Standard, Business Basic
    • Microsoft 365 F1/F3, Office 365 F3
    • New standalone Teams SKU for Enterprise: Microsoft Teams Enterprise
    • End of sale for net new subscriptions of Office 365 E1/E3/E5 and Microsoft 365 E3/E5
    • Small and medium-sized businesses can purchase the existing products (Basic/Standard/Premium) that include Teams but also have the option to purchase the same products without Teams. 

Customer Impact for Enterprise Suites: 

Net new subscribers to Office/Microsoft 365 Enterprise suites outside the EEA and Switzerland who wish to provide their end users with Teams will need to purchase two SKUs: Microsoft Teams Enterprise, plus either the Microsoft 365 (no Teams) or Office 365 (no Teams) suite. 

Existing customers who wish to continue using SKUs to which they have already subscribed can continue to use, renew, upgrade, and add licenses to their current plans. If an existing customer wishes to switch to the new lineup of suites without Teams, they can do so on their contract anniversary or renewal. 

Microsoft Teams-1

Customer Impact for Business Suites: 

Current Microsoft 365 Business and Frontline suites with Teams included will coexist with the new lineup. Customers will be able to choose between the existing Microsoft 365 Business Basic, Microsoft 365 Business Standard, Microsoft 365 Business Premium, Microsoft 365 F1, Office 365 F3, and Microsoft 365 F3 suites with Teams included, or the new versions of those suites without Teams. 

The suites without Teams have a slight drop in price: 

  • Microsoft 365 Business Premium (No Teams) 
    • Monthly - $32.16
    • Annual/Monthly - $26.80
  • Microsoft 365 Business Standard (No Teams) 
    • Monthly - $16.68
    • Annual/Monthly - $13.90
  • Microsoft 365 Business Basic (No teams) 
    • Monthly - $7.68
    • Annual/Monthly - $6.40
  • Microsoft 365 E3 (No Teams) 
    • Monthly - $57.12
    • Annual/Monthly - $47.60
  • Microsoft 365 E5 (No Teams) 
    • Monthly - $89.16
    • Annual/Monthly - $74.30
  • Office 365 E3 (No Teams) 
    • Monthly - $35.16
    • Annual/Monthly - $29.30
  • Office 365 E5 
    • Monthly - $60.48
    • Annual/Monthly - $50.40

Our job as a Microsoft Solutions Partner for Modern Work is to help Canadian businesses get the most out of the Microsoft 365 ecosystem and that includes getting the best possible value from Microsoft products and services. If you have any questions about these changes, or our Microsoft 365 Services in general, please don’t hesitate to get in touch with us. 

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