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Office and Microsoft 365 Pricing change
Microsoft 365,  Office 365

New Pricing for Office and Microsoft 365

Microsoft announced on April 1st, 2024, that Microsoft Teams has been removed from the plans that used to include it. No, this isn't an “April Fool's Joke“. The new pricing for Office and Microsoft 365 suites affects all net new commercial customers outside of the European Economic Area (EEA) and Switzerland. This does not affect government, education, or consumer tenants.

What's the New Pricing for Office and Microsoft 365

Customers have enjoyed Microsoft teams being part of Office 365 and Microsoft 365 suites for many years. These suites also include many other great features that are not being changed as part of this licensing modification. Examples of these suites include Office 365 E1, E3, E5; Microsoft 365 E3 and E5; and Microsoft 365 Business Basic, Standard, and Premium.

If organizations choose the new Office 365 or Microsoft 365 plans without Microsoft Teams and then add the new Microsoft Teams Enterprise standalone, the price is more than the current comparable suite plan that includes Teams already. But for new customers after April 1st, there is no choice – you must choose the new suite without Teams.

For example, currently in the United States the “off the shelf” price of the Office 365 E3 suite plan is $23 a month with annual commitment. The price of the of the new “Office 365 E3 (no Teams)” suite is $20.75 a month with annual commitment. The price of Microsoft Teams Enterprise standalone is $5.25 a month with annual commitment (all prices per user). Therefore, the current price is $23 and new price is $26 for the same functionality.

New Office and Microsoft 365 Prices chart
New Office and Microsoft 365 Prices Chart

Read more about the change on the official Microsoft Announcement: Realigning global licensing for Microsoft 365.

Why are Prices Changing

Last year, The European Commission in the EEA and Switzerland implemented these changes, and now they mirror the changes in the rest of the world. We thank the European Commission for this alignment. Existing customers do not have to change their current subscriptions – for now. However, I will not be shocked if Microsoft forces us all to pick the new cost structure sometime in the future as a way of ‘consolidating' plans.

For more information, please see the “Realigning global licensing for Microsoft 365” link above, which has a Frequently Asked Questions (FAQ) section on the announcement page.


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