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Microsoft is rolling out its biggest licensing changes in years which will affect nearly every Microsoft 365 and Teams user worldwide. From new “Teams-optional” suites to billing term surcharges and Teams Phone price adjustments, understanding what’s changing will help your business budget accurately and stay compliant.
Let’s unpack what’s coming by the end of 2025 and into 2026.
Starting on the 1st of November 2025, Microsoft 365 and Office 365 customers will be able to choose between two options including:
This change aligns with Microsoft’s global commitment to provide fairer competition and interoperability originally developed for the European Economic Area (EEA) and now rolling out worldwide.
New enterprise customers can pick “no Teams” suites and buy Teams separately if needed.
Existing customers can continue renewing current suites that already include Teams.
Microsoft will maintain a fixed price delta the “no Teams” versions will cost less than their Teams-included counterparts.
Starting 1 November 2025, new customers worldwide will once again be able to purchase the enterprise versions of Microsoft 365 and Office 365 with Microsoft Teams included (i.e., bundled suites), in addition to the existing “without Teams” versions.
The licensing structure will include a fixed minimum price difference (“delta”) between versions “with Teams” and “without Teams”. For example:
£6.90 per user/month
(M365 E3/E5, Office 365 E3/E5)
£2.60 per user/month
Standard/Premium/Office 365 E1 etc.
£0.85 per user/month
M365 F3 (no Teams) version vs Teams-included version.
(typically lower cost) to reflect the “no Teams” option and the delta.
Those who already have multi-year contracts in the EEA will have guarantees, these guarantees give you the ability to transition from “with Teams” to “no Teams” at their annual order period for up to five years) and to receive equivalent discounts for both options.
The changes are part of Microsoft’s commitments to the European Commission around competition, interoperability, and data portability across collaboration platforms.
Stay compliant and cost-efficient with this free download to help guide your Licence infrastructure.
From the 1st of April 2025, Microsoft introduced a 5 % surcharge for customers paying monthly on an annual-commit subscription.
If you prefer monthly billing for cash-flow reasons, this could slightly raise your coss overall for this subscription.
Additionally, certain products like Teams Phone and Power BI will see targeted price adjustments (notably this change was implemented in July 2025 for US Government customers, with broader changes expected for everyone else later).
Stay compliant and cost-efficient with this free download to help guide your Licence infrastructure.
If you have alternative communication tools, you could reduce your costs by choosing the “no teams” subscription option, you should also review your billing options as monthly billing now ads a 5% monthly surcharge which could be avoided with better pre-planning.
By completing a full audit of your teams licences you can determine which users truly need which licences and reduce costs by streamlining this to match your teams needs.
By evaluating what other systems you already have in place and utilising the “no teams” option a well as the teams standalone option you may be able to cut costs.
Once you have completed a full audit of your teams access you will be in a better position to sign up for annual subscriptions with the knowledge that your entire team have the tools they need to do what they do best without the need for overspending on unneeded licences, you can then feel at ease to enter into an annual subscription and reduce your overall spend if you have no plans to move away.
By working with a certified Microsoft partner like us, you can ensure your audits are completed correctly and that you have an expert on your side to pinpoint key areas of improvement and cost savings.
By pre planning for these upcoming Microsoft licence changes you can update your internal budget and ensure going forward your procurement policies are inline with these checks.
Get a tailored audit of your M365 & Teams usage.
To meet global regulatory commitments and offer more flexibility for customers who use different collaboration tools.
No. Existing customers can keep renewing current “with Teams” suites unless they choose to switch.
Starting April 2025, customers on annual-commit plans who pay monthly will pay 5 % more than those paying annually upfront.
Yes, Teams will be offered as a standalone licence if you choose a “no Teams” suite.
The key date is 1 November 2025, when Teams-optional suites become available worldwide.
The key date is 1 November 2025, when Teams-optional suites become available worldwide.
Anne-Marie Blazdell is a Marketing & Communications Manager with expertise in digital marketing, content creation, and IT solutions. With a strong foundation in graphic design, she trained at Farnborough College of Technology and Southampton Solent University before advancing into marketing and business IT support.
Since joining Syn-Star in 2022, Anne-Marie has specialised in crafting SEO-optimised website content, managing social media, and helping businesses navigate the complexities of IT. Her work bridges the gap between technology and business, making IT more accessible and effective.
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