Starting June 30th, 2024, Microsoft Teams will no longer be bundled with many of the Microsoft licensing packages. This significant change impacts businesses of all sizes, and understanding these updates is crucial for making informed decisions about your software needs. Read (or watch) as Ethan explains the new Microsoft licensing and how it affects your business.
Why the Change?
In July 2023, the European Commission launched an investigation into Microsoft after competitors argued that bundling Microsoft Teams with other Microsoft products gave the company an unfair advantage. In response, Microsoft unbundled Teams from their licenses in Europe starting October 2023. This unbundling is now being implemented globally, affecting customers worldwide starting in April-June 2024.
The Impact on Licensing Costs
Grandfathered Licensing:
If you currently have Microsoft Teams included in your license, there's no need to worry. Microsoft will grandfather existing licenses, meaning you will retain access to Teams without additional cost. However, this grandfathering only applies if you do not cancel your current license.
Pricing Changes:
For new licenses purchased after June 30th, 2024, the cost structure will change. For example, the Office E1 license, which includes Exchange, SharePoint, and Microsoft Teams, currently costs $10 per user. After June 30th, this price will drop to $7.75, but Microsoft Teams will be excluded. Adding Microsoft Teams back will cost an additional $5.25 per user, making the total $13 per user, representing a roughly 30% increase.
Consider a scenario where a business currently uses 10 E1 licenses and 1 E3 license, costing $123 per month. After the changes, the same configuration without Teams will cost $98 per month. If the business decides to add Microsoft Teams back to these licenses, the cost will rise, reflecting the additional $5.25 per user for Teams.
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Recommendations from ComTech
We want to ensure that your transition through these licensing changes is as smooth as possible. Here are some recommendations:
Reach Out for Assistance: If you have any questions, please reach out. Microsoft licensing can be complicated, so it's crucial to get accurate information for your business specifics.
Grandfathered Licensing: If your business already have Microsoft Teams included in your license, nothing will change—you'll be grandfathered in.
Purchase Before June 30th: If you intend to use Microsoft Teams and don't currently have it, we recommend purchasing a license that includes Teams before June 30th, 2024, to be grandfathered in.
Avoid Cancelling Licenses: If you're using Teams, don't cancel your license, as doing so will forfeit your grandfathered status.
Should you have any questions or wish to share your experiences, don't hesitate to reach out at www.comtechnc.com/contact-us/.
