Yes its true, but only for a very specific set of licenses.

New clients for Office365 E1/E3/E5 and Microsoft365 E3/E5 will not include Teams.

Existing subscribers and other plans can choose if you want your license with or without teams.

Answer from Vincent Choy on learn.microsoft.com
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@Anonymous

Microsoft Teams licensing has indeed seen some changes recently. Here's a brief overview to help clarify:

  1. Microsoft 365 Business Basic: Previously, this license included access to Microsoft Teams, but only via web and mobile apps. Users often faced issues when trying to use the Teams Desktop app.
  2. Microsoft 365 Business Standard: This license allows users to use Microsoft Teams on web, mobile, and desktop applications. It includes the full suite of Office applications both online and offline.
  3. Microsoft 365 Business Premium: Similar to Business Standard, this license includes access to Microsoft Teams on all platforms (web, mobile, and desktop) and offers additional security features.
  4. Microsoft Teams Essentials: This is a new standalone license specifically for Microsoft Teams. It provides access to Teams on web, mobile, and desktop without requiring a full Microsoft 365 suite license.
  5. Microsoft 365 Business Basic (without Teams): This is a new option that excludes Microsoft Teams from the Business Basic plan. It provides access to other M365 apps on web only.

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Microsoft 365 and Office 365 now offer versions without Teams, with a price decrease and the opportunity to buy Teams as a standalone offer. These changes are intended to realign Microsoft’s global subscription structure following changes made in Europe in 2023.

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May 7, 2024 -

tl;dr -- Do the new Microsoft (No Teams) licensing changes essentially make it far less worthwhile to try to get clients to switch Office 365 providers? Isn't this just another middle finger to CSPs?

Hey MSP community,

I just learned (about a month late) about the new changes to Microsoft's Office 365 Lineup to no longer bundle Teams with any of the Office 365 Enterprise plans.

My question is this.. Say we have a customer that has a bunch of E3 licenses with another provider, and we convince them to switch to us. Wouldn't it be the case that we'd have to provision them net new licensing and charge them the new licensing scheme?

From my calculations, if we are looking at retail pricing, the new pricing is $33.75/mo (E3) + $5.25/mo (Teams Enterprise) = $39 whereas the old E3 pricing was $36.00

Since the incumbent provider is able to continue to keep them on old E3 licensing pricing, their pricing advantage would be about 8.33% for all existing licensing requiring us to cut our margin (or go negative, depending on what that margin might be)

Am I misreading this situation? Would the customer be considered then Net New if they swap providers?

Sources:

Wayback Machine Teams Pricing on Jan 1st:
https://web.archive.org/web/20240107213218/https://www.microsoft.com/en-us/microsoft-365/enterprise/microsoft365-plans-and-pricing

Current Teams Pricing:
https://www.microsoft.com/en-us/microsoft-365/enterprise/microsoft365-plans-and-pricing

MS Weasel Words?:
https://www.microsoft.com/en-us/licensing/news/microsoft365-teams-ww

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