Microsoft Teams Licensing Is Changing: What You Need to Know
Microsoft has announced a major change to how Microsoft Teams is licensed within Microsoft 365 and Office 365 suites. While this update was initially designed to address regulatory concerns in Europe, it will now apply globally starting November 1, 2025. If your organisation uses Microsoft 365, this change could impact your licensing strategy, costs, and collaboration tools.
What’s Changing?
Back in April 2024, in response to the European Commission, Microsoft removed Teams from its bundled license offerings. Existing customers were able to continue using their current SKUs. With the latest announcement, Microsoft will now offer Microsoft 365 and Office 365 suites with and without Teams, giving businesses more flexibility—but also introducing new decisions.
There will be a minimum price difference between the suite tiers depending on whether Teams is included:
|
Suite Tier |
Minimum Price Difference (With vs. Without Teams) |
|
M365/Office 365 E3/E5 |
€8.00 ($8.55) |
|
Business Standard/Premium, O365 E1 |
€3.00 ($3.21) |
|
Business Basic |
€1.50 ($1.61) |
|
M365 F3 |
€1.00 ($1.07) |
Standalone Teams licenses will remain available, and Microsoft will maintain consistent pricing across global markets.
What This Means for Your Business
- Cost Transparency & Control You’ll now be able to choose Microsoft 365 suites without Teams, which may reduce costs if Teams isn’t widely used in your organisation. The clear price difference helps you make informed decisions based on actual usage.
- Usage Evaluation This is a good time to assess how Teams is being used across your business. If adoption is low, you may want to consider alternative collaboration tools or opt for standalone Teams licensing.
At The SAM Club, we help businesses make sense of licensing changes like these—ensuring you stay compliant, cost-effective, and in control. If you’re unsure how this affects your Microsoft estate, we’re here to guide you through it.
Contact us for a free health check on your Microsoft 365 estate.
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