Starting October 1, 2023, Microsoft separated Microsoft Teams from its Office 365 and Microsoft 365 Enterprise subscription packages in the European Economic Area (EEA). Organizations that want to keep using Teams must now purchase it as a standalone subscription. Existing subscriptions are not affected until their renewal date.
What Changed in Microsoft’s Subscription Structure?
What is the Microsoft Teams separation?
Microsoft Teams separation is a licensing change in which Microsoft Teams is no longer bundled inside Office 365 and Microsoft 365 Enterprise packages. It is now sold as an independent subscription.
This change applies to the following Enterprise plans:
- Office 365 E1, E3, and E5
- Microsoft 365 E3 and E5
When does this apply?
This separation takes effect for new or renewing subscriptions from October 1, 2023 onward.
How Does the Pricing Change?
As a result of Teams being removed from Enterprise packages, the monthly cost of those packages is reduced:
- Price reduction on existing Enterprise packages: €2 per month (€24 per year) per user
- Standalone Microsoft Teams subscription: €5 per month (€60 per year) per user
Practical IT Example:
An organization running 50 seats on Microsoft 365 E3 that wants to keep using Teams would see their per-user cost split across two line items:
- Their E3 subscription decreases by €2/user/month → saving €100/month across 50 users
- They add a Teams standalone subscription at €5/user/month → adding €250/month across 50 users
- Net change: +€3/user/month (+€150/month total for 50 users)
This is a useful calculation to run before any renewal date to avoid unexpected budget changes.
What Happens to Current Subscriptions?
Are existing subscriptions immediately affected?
No. Current subscriptions are not impacted until they expire. Organizations with active Office 365 or Microsoft 365 Enterprise plans continue to have access to Microsoft Teams within their existing package, unchanged, until their renewal date.
A renewal date is the date on which a subscription cycle ends and is either renewed or replaced. It is the trigger point at which the new subscription structure applies.
What action is required before renewal?
Before your renewal date, organizations should decide whether they need to:
- Renew the Enterprise package (now without Teams) only if Teams is not required
- Renew the Enterprise package AND add a separate Teams subscription if Teams access must continue
Failing to add the standalone Teams subscription at renewal will result in loss of access to Microsoft Teams.
What Is Microsoft Teams as a Standalone Subscription?
Microsoft Teams standalone is a separate, independently purchasable subscription that provides access to Microsoft Teams when it is no longer included in an Enterprise suite.
- Cost: €5 per month or €60 per year per user
- Used when: An organization’s Enterprise plan (Office 365 E1/E3/E5 or Microsoft 365 E3/E5) no longer includes Teams, and continued access to Teams is required
FAQ
From what date do the Microsoft subscription structure changes apply?
October 1, 2023.
Which Microsoft plans are affected by the Teams separation?
Office 365 E1, E3, E5 and Microsoft 365 E3, E5 Enterprise plans.
Will my current subscription change immediately?
No. Existing subscriptions remain unchanged until their renewal date.
How much does the standalone Microsoft Teams subscription cost?
€5 per month or €60 per year per user.
How much will my Enterprise package be reduced now that Teams is removed?
The price is reduced by €2 per month or €24 per year per user.
