Unlocking Choices: The Inside Scoop on Microsoft 365's New EU Plans - Teams or No Teams?

Unlocking Choices: The Inside Scoop on Microsoft 365's New EU Plans - Teams or No Teams?

Microsoft is shaking things up with revamped Microsoft 365 plans for the EU and Switzerland, starting October 1, 2023. In a departure from the norm, Teams will no longer be part of the package; instead, it will be available as a separate add-on.

This strategic move comes in response to the European Commission's concerns about Teams being automatically included in Microsoft 365 offerings. If you're already a Microsoft 365 user, rest easy—these changes won't affect your current plan. However, new customers will have the flexibility to opt for plans either with or without Teams.

While the plans without teams will come at a reduced cost, Enterprise packages will see a slight price hike. Let's dive into the financial implications.

Updated Pricing for Microsoft 365 Plans in the EEA

It's crucial to highlight that these pricing adjustments will be applicable exclusively in the EEA and Switzerland.

Enterprise Packages

For enterprise-level organizations, the most significant shifts and price hikes are on the horizon. Microsoft is unbundling Teams from both Microsoft 365 and Office 365 Enterprise plans. To continue using Teams, it will be necessary to purchase it as a separate add-on at €5.00 per user.

For those already on Enterprise plans, your existing arrangements remain unaffected. You can continue to add or renew seats as you've always done and have the option to transition to the new plans when your contract expires.

As for new customers, they'll need to purchase two separate plans (SKUs)—one for Microsoft 365 or Office 365 and another for Teams, should they wish to utilize it.

The new Enterprise plans are:

New Enterprise Suite Price (EEA, no Teams)
Office 365 E1 EEA (no Teams) €7.40
Office 365 E3 EEA (no Teams) €23.10
Office 365 E5 EEA (no Teams) €39.50
Microsoft 365 E3 EEA (no Teams) €35.70
Microsoft 365 E5 EEA (no Teams) €57.70
Microsoft Teams EEA (add-on) €5.00

If your organization doesn't require Teams, the new plans could reduce your costs by €2.00 for each user every month. However, if you're not already using Microsoft 365 and need Teams, expect to pay an additional €3.00 per user per month:

Enterprise Suite Old Price New Price (with Teams Add-on)
Office 365 E1 €9.40 €12.40
Office 365 E3 €25.10 €26.10
Office 365 E5 €41.50 €44.50
Microsoft 365 E3 €37.70 €40.70
Microsoft 365 E5 €59.70 €62.70

Microsoft 365 Business Plans: New Options, Same Reliability

Good news for businesses in the EEA and Switzerland! The current Microsoft 365 Business suites will continue to be available at their existing price points, complete with Microsoft Teams. But that's not all—now you have the flexibility to opt for these plans without Teams, at a reduced cost. Choose what suits your organization best without compromising on features:

(Existing) Suites with Teams Price New suites without Teams Price
Microsoft 365 Business Basic €5.60 Microsoft 365 Business Basic EEA €4.60
Microsoft 365 Business Standard €11.70 Microsoft 365 Business Standard EEA €9.70
Microsoft 365 Business Premium €20.60 Microsoft 365 Business Premium EEA €18.60

Frontline Suites: New Options, Same Reliability

In addition to the Business and Enterprise suites, the Frontline suites also offer flexibility in terms of options. You can either stick with the existing Frontline suites at their current pricing or opt for new versions that exclude Teams. Interestingly, the price gap between the two options is relatively minimal when compared to the Business and Enterprise suites:

(Existing) Suites with Teams Price New suites without Teams Price
Microsoft 365 F1 €2.10 Microsoft 365 F1 EEA (no Teams) €1.60
Office 365 F3 €3.70 Office 365 F3 EEA (no Teams) €3.20
Microsoft 365 F3 €7.50 Microsoft 365 F3 EEA (no Teams) €7.00

Conclusion

For small and medium-sized businesses, not much has changed. You can continue to access the same plans at the same rates, and you could even save money if your organization doesn't utilize Microsoft Teams. However, for new Enterprise clients, incorporating Teams into your organization will come at a slightly higher cost.

If you want to know more about Microsoft Licensing feel free to contact me:

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