Summary
Microsoft unbundled Teams from the Microsoft 365 and Office 365 suites.
They did it before for Europe, and now it is officially worldwide.
What does "unbundling" Teams from Microsoft 365 mean?
This unbundling means that from April 2024, Microsoft 365 and Office 365 suites without Teams are available at a reduced price, potentially lowering the financial burden on organisations that do not use Teams or want to use its alternatives like Slack or Zoom.
What geographies are affected?
It is a worldwide change, effective April 01, 2024.
Why is Microsoft doing it?
The official excuse is "to realign our global subscription structure following changes made in Europe". In 2023, Microsoft faced pressure in the EU, which was addressed in October 2023 by unbundling Teams in the EEA and Switzerland.
Why the global change now? Experts can speculate, but nobody really knows it.
What Microsoft 365 bundles are affected?
Exactly as with the European change last year, all Microsoft 365 plans are affected, but not all are affected in a similar manner.
Microsoft 365 plans | New clients | Existing subscribers |
|---|---|---|
Office 365 E1/E3/E5, Microsoft 365 E3/E5 | New clients will only be able to purchase these plans without Teams. | Existing subscribers may renew their subscriptions that already include Teams or switch to new plans without Teams. |
Office 365 F3, Microsoft 365 F1/F3 | You can choose between plans with and without Teams. | You can choose between plans with and without Teams. |
Microsoft 365 Business Basic/Standard/Premium | You can choose between plans with and without Teams. | You can choose between plans with and without Teams. |
What if you want to add Teams back?
As per the official announcement, the price is $5.25 per user per month.
It's a flat fee across all plans.
How much less are the "no Teams" plans?
Microsoft 365 and Office 365 plans for Enterprise
Enterprise plans received a flat $2.25 price decrease.
Plan | Old price | New price | Difference | Add Teams | Increase with Teams |
|---|---|---|---|---|---|
Office 365 E1 (no Teams) | $10.00 | $7.75 | $2.25 | $13.00 | 30% |
Office 365 E3 (no Teams) | $23.00 | $20.75 | $2.25 | $26.00 | 13% |
Office 365 E5 (no Teams) | $38.00 | $35.75 | $2.25 | $41.00 | 8% |
Microsoft 365 E3 (no Teams) | $36.00 | $33.75 | $2.25 | $39.00 | 8% |
Microsoft 365 E5 (no Teams) | $57.00 | $54.75 | $2.25 | $60.00 | 5% |
Microsoft 365 for Frontline workers and Microsoft 365 Business
Frontline workers and Business plans are less affected because the choice between bundled and unbundled plans remains for all.
However, you must make a strategic decision when you renew your Microsoft Enterprise Agreement or go for a long CSP subscription. Why? Because if you later decide that you need Teams, it will cost you dearly. If you are undecided, our advice is to keep procuring these plans with Teams.
Plan | With Teams | Without Teams | Difference | If you decide to add Teams later | Budget increase if you choose to add Teams later |
|---|---|---|---|---|---|
Microsoft 365 F1 | $2.25 | $1.75 | $0.50 | $7.00 | Better to buy additional subscriptions (211%) |
Office 365 F3 | $4.00 | $3.50 | $0.50 | $8.75 | Better to purchase additional subscriptions (119%) |
Microsoft 365 F3 | $8.00 | $7.50 | $0.50 | $12.75 | 59% |
Microsoft 365 Business Basic | $6.00 | $4.75 | $1.25 | $10.00 | 67% |
Microsoft 365 Business Standard | $12.50 | $10.25 | $2.25 | $15.50 | 24% |
Microsoft 365 Business Premium | $22.00 | $19.75 | $2.25 | $25.00 | 14% |
Does it help address competition concerns?
Here is what you need to consider:
If you are keen to use competing products, Microsoft 365 and Office 365 plans will cost you less.
Switching to Zoom or Slack from Teams will increase your IT budget. Their commercial plans are more expensive than what you can save on removing Teams.
European tenants must use European plans
European clients and multinational clients with a presence in Europe must choose European (EEA) "no Teams" bundles:
Territory constraints | Plans to purchase |
|---|---|
Customers with enrollments in the EEA or Switzerland or deployments on EEA/Switzerland tenants | Specific "EEA (no Teams)" SKUs |
Everyone else | Worldwide "no Teams" SKUs |
Why? Quoting Microsoft, "to minimize change for EEA customers while realigning the available options worldwide". We expect it may change in the future.
Our expert advice
If you want to keep Teams, renew your existing plans.
If you want to switch, consider the cost benefits versus the risks, including the cost of alternative products. On cheaper plans, it would be prudent to remain subscribed to full bundles until you have fully migrated to competing products.
Pay attention to the tenant and enrollment territory.
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