Microsoft 365 Licensing changes from 1st April 2024

Microsoft have recently announced a licensing change effective of 1 April 2024. These Microsoft changes were made to realign their global subscription structure following changes made in Europe in 2023. Please see below further details, if you have any questions please don’t hesitate to contact our Team on [email protected].

How will this change affect you as a current customer?

Existing customers who already subscribe to Microsoft 365 or Office 365 suites with Teams will have new options. They may continue to use, renew, upgrade, and otherwise adjust their subscriptions as before until the official end of life date June 30th 2024. They may also now switch to suites without Teams at anniversary/renewal or add new user subscriptions to suites without Teams or to the new Teams standalone at any time (including alongside suites with Teams).

What if I am a new customer?

New commercial customers will no longer be able to purchase Teams included in the Microsoft 365 Enterprise licence. Instead, customers will now need to purchase two SKUs: Microsoft 365 E3 or E5 (no Teams) and Teams Enterprise. New Microsoft 365 Business customers (Business Basic/Standard or Premium) and Frontline customers (F1 and F3) have the choice of purchasing Microsoft 365 with or without Teams included. All the licences without Teams included are priced lower than the suites with Teams included.

These changes only apply to commercial organisations and do not currently apply to Nonprofits, Academics of Government licences.

The full announcement with $USD pricing can be found here

New Enterprise Licencing - 12 Month Agreements:

Microsoft 365 Licence

Price (ex VAT)

Office 365 E1 (no Teams)

£6.40 ex VAT

Office 365 E3 (no Teams)

£19.90 ex VAT

Office 365 E5 (no Teams)

£34.30 ex VAT

Microsoft 365 E3 (no Teams)

£31.00 ex VAT

Microsoft 365 E5 (no Teams)

£50.30 ex VAT

Microsoft Teams Enterprise

£4.30 ex VAT

Microsoft 365 Business Basic (no Teams)**

£3.90 ex VAT

Microsoft 365 Business Standard (no Teams)**

£8.40 ex VAT

Microsoft 365 Business Premium (no Teams)**

£16.20 ex VAT

** Microsoft are still offering Business Licencing with Teams included. 

Licencing that has been retired and can not be renewed:

Microsoft 365 Licence

Office 365 E1

Office 365 E3

Office 365 E5

Microsoft 365 E3

Microsoft 365 E5

End of Life date for renewals on old SKUs: June 30th 2024 - from this date old SKU's retire fully and any renewal becomes the new No Teams version only.

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