Flexibility with Microsoft 365 and Teams

Starting in October 2023, Microsoft introduced a significant change by separating Teams from its Office 365 and Microsoft 365 SKUs, initially only in the EEA and Switzerland. This move aimed to offer more flexibility to organizations, allowing them to choose whether or not to include Teams in their subscription bundles. However, as of April 2024, Microsoft has expanded this flexibility globally.

In March 2022, Microsoft implemented price increases for Office 365 and Microsoft 365 SKUs without the 'Audio Conferencing' feature while emphasizing the price increase provides added value by including it.

Organizations have the freedom to tailor their subscriptions to better suit their needs:

• Teams is no longer included in Office 365 SKUs for new subscribers

• Microsoft 365 SKUs with Teams

• Microsoft 365 SKUs without Teams

	Before March 2022 (Without Audio Conferencing)	March 2022 Price Increase (With Audio Conferencing)	April 2024 (Without Teams)
Office 365 E1	$8	$10	$7.75
Office 365 E3	$20	$23	$20.75
Office 365 E5	$35	$38	$35.75
Microsoft 365 E3	$32	$36	$33.75
Microsoft 365 E5	$57*	$57*	$54.75
Microsoft Teams Enterprise	N/A	N/A	$5.25

Note * : Audio Conferencing feature has always been included in Microsoft 365 E5 SKU.

While this newfound flexibility empowers organizations to optimize their licensing cost, it also raises considerations around license compliance and installation challenges. Organizations must ensure their licensing decisions align with usage and compliance requirements to avoid potential pitfalls.

This change presents an opportunity for organizations structured around separate user profiles to realize cost savings through strategic planning.

Implementing user profiling strategies can further enhance efficiency and cost-effectiveness, ensuring each user has access to the right features without unnecessary expenditures. If your organization still needs to evaluate user profiling as part of its Microsoft strategy, now is an opportune moment to start planning ahead of the next renewal cycle. By strategizing now, you can maximize the benefits of Microsoft's new flexibility while maintaining compliance and efficiency in software licensing.

In addition, organizations that previously managed multiple collaboration applications due to Teams being bundled in their SKUs can now conduct assessments to identify the best-fit solution for their needs. By eliminating unnecessary applications, they achieve cost savings and streamline operations, reducing the time and effort spent on managing disparate tools. This shift allows organizations to focus resources more efficiently, enhancing productivity and optimizing team collaboration.