What Is Happening to Microsoft Teams?

On April 1, 2024, Microsoft announced that moving forward, commercial Microsoft 365 and Office 365 suites won’t include Teams on new licensing agreements outside of the European Economic Area (EEA) and Switzerland.

I get it — any time Microsoft makes an announcement like this, it’s tempting to get your adrenaline up. But depending on how you use Teams, this is likely to work in your favor.

Go with me here while I answer a few big questions…

Is Microsoft Teams Going To Be Discontinued?

A group of coworkers react to new announcements from Microsoft that Teams will no longer be part of some 365 licenses.

No! Even if you have a commercial Microsoft 365 or Office 365 license, rest assured, that Microsoft Teams isn’t going anywhere.

However, for new licenses, Microsoft Teams Enterprise will become a standalone purchase of $5.25 per user, per month for businesses located outside of the EEA and Switzerland. The EEA was established in 1994 and includes all EU countries, plus Iceland, Liechtenstein, and Norway.

How Will Removing Microsoft Teams From 365 Licenses Affect Your Business?

When you look into the details of this change, it isn’t as bad as many headlines would have you think.

Enterprise Customers

Office 365 E1, E3, E5, Microsoft 365 E3, and Microsoft 365 E5 suites with Teams will no longer be sold to net new subscribers. Net new subscribers (outside the EEA and Switzerland) of Office or Microsoft 365 Enterprise suites will need to purchase two different SKUs if they’d like to use Teams.

However, existing customers can continue to use, renew, upgrade, and add licenses to their current plans. They can also choose to switch to a new subscription on their contract anniversary or renewal.

Microsoft 365 Business and Frontline Customers

Similarly, current Microsoft 365 Business and Frontline suites with Teams included will remain alongside the new lineup.

Moving forward, you’ll be able to choose between versions of the following plans with and without Teams:

Microsoft 365 Business Basic
Microsoft 365 Business Standard
Microsoft 365 Business Premium
Microsoft 365 F1
Office 365 F3
Microsoft 365 F3

ACE 365 Clients

Do you already use ACE365 from Marco? If so, you can relax! There will be absolutely no impact on — or changes to — the way we manage or support your solution.

Haven’t heard of ACE 365? You’re in good company there. It’s a newer offering designed to help small to midsize businesses secure and optimize their Microsoft environment. While some organizations would be better served by fully managed IT, ACE 365 can be a right-sized option for organizations that rely heavily on Microsoft tools and don’t need more comprehensive support.

Why Did Microsoft Do This?

So far, Microsoft hasn’t provided much information about why it’s making this move, which isn’t surprising. We do know that these changes came about after the European Commission provided some feedback surrounding competition issues in Europe. For context — last August, Microsoft announced that it would unbundle Teams from Microsoft 365 and Office 365 suites in the EEA and Switzerland starting October 1, 2023.

However, offering businesses more flexibility in their licensing also reflects Microsoft’s commitment to anticipating the evolving needs of businesses. So far, Microsoft’s messaging regarding this change has been largely along these lines.

Is Removing Microsoft Teams a Good or Bad Thing?

Two business partners compare different Microsoft licenses, with and without Microsoft Teams.

At this time, you can still keep your current license and renew it as-is! However, if your business uses Teams unevenly (or not at all), you can opt for a plan that is more in line with your needs. So, from where we’re sitting, this is actually a pretty good thing…at least for now!

How To Simplify Your Microsoft Subscription

A lot of businesses assume that they’ll get a better deal when they purchase equipment or software directly. However, that’s not necessarily true. For example, because we have a strategic partnership with Microsoft, we’re able to offer simplified licensing and insider pricing.

While we understand that any change Microsoft makes is likely to send a shockwave through the business world, this change is also an excellent opportunity to reevaluate your current license and see if you could save money or get more ROI with a different plan.

Not sure you want to spend hours going over your options? We’re happy to do it instead — for free.

Request a Microsoft assessment through the link below!