Microsoft 365 suites will no longer come with Teams for customers worldwide
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Microsoft yesterday announced it is restructuring Microsoft 365 and Office 365 product licensing worldwide, separating its Teams collaboration software from core productivity suites in most markets. The move aligns with a similar change made in the European Economic Area (EEA) last year.
The software giant will now offer “no Teams” versions of its popular Office 365 E1, E3, E5 and Microsoft 365 E3, E5 enterprise suites. Existing subscribers can maintain their current plans. New customers wishing to combine Teams with these productivity suites will need to purchase separate licenses for both the core suite and Microsoft Teams Enterprise.
Microsoft is also introducing “no Teams” versions of its Frontline and Business suites and will continue offering standalone Teams licensing.
Changes to Microsoft 365 Enterprise Suites:
- Net new subscribers to Office/Microsoft 365 Enterprise suites outside the EEA and Switzerland who wish to provide their end users with Teams will need to purchase two SKUs: one Microsoft 365 (no Teams) or Office 365 (no Teams) suite and Microsoft Teams Enterprise. See details of the new lineup in the table below:
| Existing suites with Teams | New Suites without Teams (after Apr. 1) | Pricing* |
|---|---|---|
| Office 365 E1/E3/E5 and Microsoft 365 E3/E5 suites | Office 365 E1 (no Teams) | $7.75 |
| with Teams no longer sold to new subscribers. | Office 365 E3 (no Teams) | $20.75 |
| Available only to customers with existing licenses | Office 365 E5 (no Teams) | $35.75 |
| that include Microsoft Teams as of April 1, 2024 | Microsoft 365 E3 (no Teams) | $33.75 |
| outside the EEA and Switzerland. | Microsoft 365 E5 (no Teams) | $54.75 |
| New Microsoft Teams Standalone | Pricing* | |
| Microsoft Teams Enterprise | $5.25 |
Changes to Microsoft 365 Frontline Suites:
| Existing Suites with Teams | Pricing* | New suites without Teams (starting Apr. 1) | Pricing* |
|---|---|---|---|
| Microsoft 365 F1 | $2.25 | Microsoft 365 F1 (no Teams) | $1.75 |
| Office 365 F3 | $4.00 | Office 365 F3 (no Teams) | $3.50 |
| Microsoft 365 F3 | $8.00 | Microsoft 365 F3 (no Teams) | $7.50 |
| *This pricelist pricing is subject to change and may vary by country and currency. |
Changes to Microsoft 365 Business Suites:
| Existing suites with Teams | Pricing* | New suites without Teams (starting Apr. 1) | Pricing* |
|---|---|---|---|
| Microsoft 365 Business Basic | $6.00 | Microsoft 365 Business Basic (no Teams) | $4.75 |
| Microsoft 365 Business Standard? | $12.50 | Microsoft 365 Business Standard (no Teams) | $10.25 |
| Microsoft 365 Business Premium? | $22.00 | Microsoft 365 Business Premium (no Teams) | $19.75 |
This unbundling reflects changing work patterns where some organizations may prefer standalone communication and collaboration tools. It could make Microsoft more competitive against rivals like Slack and Zoom, particularly in price-sensitive markets.
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