Microsoft Licensing Update February 2025

Author:

Floris Klaver

Floris entered Microsoft Licensing in 2011. Seasoned in simplifying highly complex contracts and licensing environments for large and global organizations.

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Microsoft Licensing Update ... Microsoft Licensing Update February 2025

Author:

Floris Klaver

LicenseQ celebrates 5-years of Microsoft licensing excellency

This month is special for us at LicenseQ as we celebrate our 5-year anniversary! 🎉 While it’s a big milestone for us, it’s a quieter month for the Microsoft licensing update, with only a few smaller updates to the Product Terms. Here’s what you need to know.

 

Product Terms updates

Privacy and Security Terms

  • Microsoft has added Azure Managed Applications, Azure Resource Manager, M365 Cloud PC to the EU Data Boundary table. This means that these services are now covered under GDPR.
  • Professional Services Data added as definition to the EU Data Boundary terms and conditions. It is defined as “all data, including all text, sound, video, image files or software, that are provided to Microsoft, by or on behalf of Customer or otherwise obtained or processed by or on behalf of Microsoft through an engagement with Microsoft to provide Professional Services”. The Professional Services Data related to Azure can and will be stored within the EU Data Boundary, provided that you have configured Azure Resource Manager accordingly, as outlined here.
  • Microsoft Copilot has been rebranded to Microsoft 365 Copilot Chat (update on January 15th).

Microsoft 365

  • Microsoft removed Microsoft 365 Information Protection and DLP – Student Use Benefit Add-on from availability table and license prerequisites table
  • Remote help was removed from the license prerequisites table
  • The Microsoft Defender for Business clause has been updated to clarify that it can be used on up to five concurrent devices.
  • Microsoft Copilot rebranded to Microsoft 365 Copilot Chat and the M365 Copilot Chat clause is now included on the M365 page. This clause specifies that products purchased by a customer may share data, including Customer Data, among themselves as outlined in the product documentation. Data processing for each product is governed by its applicable Product Terms. (Updated January 15th).

Microsoft Azure

  • Azure Communication Services Terms and Conditions clause extended to require developers to collect explicit consent for recording if the tenant admin has enabled explicit recording.

Audio Services renamed to PSTN Audio Services

  • Update Teams SMS Messaging clause: This clause states that Microsoft must share application details and/or campaign information with the Operator to ensure that the program meets regulatory guidelines and standards set by operators. The customer and its end users shall comply with the Teams SMS Messaging Policy. The Messaging Policy applies to SMS communications. Microsoft reserves the right to suspend or remove access to Teams SMS for Customers that do not comply with the Messaging Policy.

Miscellaneous

  • Microsoft announced GitHub Copilot Free. For people wanting to get started with GitHub Copilot. It’s restricted to 50 messages and interactions, and 2,000 real-time code suggestions per month, after which you need to upgrade to the Pro version which costs $10 per month.
  • New licensing guide released for Microsoft Defender licenses. You can find it here.
  • As well as a licensing guide to M365 Apps (for Enterprise and Business). You can find this guide here.


Reminder: CSP Changes Effective April 1st, 2025

🔹 5% Price Increase for customers with an annual commitment and monthly payments.

🔹 Reminder: Upcoming Price Increases (April 1)

  • Teams Phone Standard → $10 per user/month (currently $7.99, +25%)
  • Power BI Pro → $14 per user/month (currently $10, +40%)
  • Power BI Premium → $24 per user/month (currently $20, +20%)

Be sure to plan accordingly for these changes!

Floris has a strong technical background and a wealth of experience in Microsoft licensing and negotiation. Floris helps LicenseQ’s clients actively expand their licensing knowledge, improve their license position, mitigate possible exposure, negotiate with Microsoft and helps to reduce or optimize their Microsoft spend. Floris has worked in software licensing since 2011 and was employed at Microsoft during their transformation from a software vendor to a cloud solutions vendor. If you are in need of support or an extra pair of expert eyes on your Microsoft related licensing queries, please reach out to Floris via LinkedIn so we can set up a meeting to discuss possibilities.

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