Monthly Microsoft License Update April 2024
Welcome to the April 2024 instalment of the Microsoft Product Terms Update from the Version 1 Microsoft License Consulting Team. Each month, Microsoft releases license changes on their product terms — this month sees a variety of updates to both product terms and supporting license briefs.
Microsoft 365 & Office 365 — It appears that this month marks a significant global shift in the separation of Teams from applicable Microsoft 365 and Office 365 Suites. This change is evident from the recent product term updates:
· Added Microsoft 365 (no Teams) and Microsoft Teams Enterprise to the Availability tables, as well as terms regarding availability and applicable license terms.
· Added Office 365 (no Teams) and Microsoft Teams Enterprise to the Availability tables for Office 365 Suites and Teams entries, as well as terms regarding availability and applicable license terms.
In one of our licensing updates in 2023, we discussed Microsoft’s intention to separate Teams from Microsoft 365. This shift in licensing strategy by Microsoft follows a complaint filed by Slack against Microsoft with the European Commission in July 2020. Slack alleged that Microsoft was engaging in illegal and anti-competitive practices by bundling Teams with its dominant Office software services.
The updates terms above now extend globally and not just for the European Economic Area ‘EEA’. In essence, if you already have Microsoft 365 or Office 365 licenses that include Teams, it’s business as usual. No need for major changes; renewing or adding licenses proceeds normally.
However, if you’re a net new Microsoft 365/Office 365 licensee, you’ll need to purchase Microsoft 365 or Office 365 licenses separately and attach a Teams Enterprise license. This may lead to a price increase, depending on the type of license needed to attach Teams Enterprise to.
This change is expected to affect only a small portion of customers, given the widespread adoption of Microsoft 365 and Office 365. Nonetheless, customers should be vigilant about not letting agreements lapse, as acquiring new licenses without Teams could incur additional costs if Teams is required as a bolt-on license. While some organisations might benefit from the ability to remove Teams from their licensing costs, this option is likely to be relevant only to a minority of customers due to Teams’ deep integration into the Microsoft 365/Office 365 ecosystem.
Microsoft Azure — Added SQL Server enabled Azure Arc and its Use Rights Microsoft says if you have SQL Server enabled Azure Arc, and if it is licensed with Software Assurance or subscription licenses, then you can only deploy with an Authorised Outsourcer but not a Listed Provider (i.e. AWS, Google, Alibaba). Similarly, if you have SQL Server enabled Azure Arc and you have licensed all the physical cores for unlimited virtualisation, but it is licensed through PAYG, the same restriction applies (Authorised Outsourcers but not Listed Provider).
Microsoft Intune — Added Frontline Worker products to availability and prerequisite tables. The Intune license availability table has significantly increased this month since Microsoft has added the following Intune Frontline Worker license;
· Enterprise Application Management Frontline Worker
· Advanced Analytics Frontline Worker
· Cloud PKI Frontline Worker
· Intune Plan 2 Frontline Worker
· Remote Help Frontline Worker
· Intune Suite Frontline Worker
· Microsoft Intune Endpoint Privilege Management Frontline Worker (User SL).
The Frontline Worker license eligibility rules still apply.
Privacy & Security Terms — Microsoft Defender for Identity has been added as a Core Online Service, as well as added to the Security Practices and Policies Table and Location of Customer Data at Rest clause.
Dynamics 365 Supply Chain Management (SCM) Premium — SCM Premium is an advanced capability product building upon SCM that allows organisations and users to adapt quickly to demand shifts with new demand-planning capabilities powered by Microsoft Copilot.
Dynamics 365 SCM Premium has been added to Availability, Prerequisites and Purchasing Minimums Tables (10x user threshold at approximately $300 per user, per month). It has also been added as an applicable product under Service Specific Terms for External Users, Administration Portal and Mixed Deployments clauses and as an applicable product under Power Platform Extended Use Rights clause.
As Microsoft license experts, we can help you demystify these and any other product changes and clarify what this could mean for your license position. If you have any questions relating to this or any other Microsoft licensing matter, please go to our website or contact us.
About the Author:
Karl is a Principal Licensing Consultant at Version 1, providing global Microsoft license expertise to organisations and ensuring customers get the best value from their Microsoft assets.
