Microsoft 365: New global changes to “Teams” licensing unveiled

WEB DESK: Microsoft announced a change in its “Teams” licensing globally on Sunday. The move will affect how the company’s partners sell certain packages.

Microsoft Teams is a “collaboration tool” within the Microsoft 365 package. It allows users to participate in video meetings, send messages, store files, and integrate with various applications, both from Microsoft and other companies.

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The latest changes were previously limited to the European Economic Area (EEA) and Switzerland only but will now apply to all regions globally.

New customers outside the EEA and Switzerland will need to select from updated packages that exclude Teams. Software packages offered by Microsoft including Office 365 E1, O365 E3, O365 E5, Microsoft 365 E3, and Microsoft 365 E5 will not carry Teams anymore.

Microsoft has instead introduced a standalone software called “Microsoft Teams Enterprise.” This new offering is specifically tailored for larger organisations or enterprises. However, Microsoft’s “SMB” (Small and Medium-sized Business) and “Frontline suites,” which are designed for smaller businesses and workers who directly interact with customers, will still include Teams as part of their packages.

Existing customers in the affected regions will have the option to retain their current plans upon renewal. However, new subscribers will be required to purchase Teams separately in addition to their Office or Microsoft 365 subscription.

Microsoft is also updating its other packages, including “Frontline” and “M365 Business.” These updates involve introducing new, more affordable packages that do not include Teams as part of the new package. This means that customers opting for these packages will have the choice to use Microsoft Teams separately, depending on their specific needs.

These changes are a response to concerns raised by the European Commission regarding competition rules. In the past, Microsoft unbundled Teams for customers in the EEA and Switzerland to address these concerns. However, competitors such as “Zoom” criticised Microsoft’s bundled packages, suggesting they may hinder fair competition in the market.

Many industry observers perceive these changes as indicative of heightened scrutiny of major tech companies by Western governments. For instance, the European Commission is actively investigating anti-competitive practices among companies like Alphabet (Google), Apple, and Meta (Facebook). This suggests a broader trend of regulatory oversight aimed at ensuring fair competition in the tech industry.

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Similarly, the United States (US) government has expressed concerns regarding Microsoft’s cloud practices. Cloud computing refers to the delivery of computing services, including storage, processing power, and applications, over the internet. Competitors and government officials have called for closer examination of the company’s activities.