Microsoft licensing updates for April 2024
Teams exclusion from M365 suites
On April 1st, Microsoft made a significant announcement regarding the restructuring of the Microsoft 365 (M365) suites, particularly affecting how Teams is packaged. This change, initially implemented in the European Economic Area (EEA) due to regulatory considerations, is now being adopted globally. Starting today, new M365 customers—those who have not previously purchased M365—will find that Teams is not included in the M365 suites. Instead, Teams must be acquired through an additional subscription.
Existing Microsoft customers with M365 subscriptions can continue to renew their current licenses without the need to purchase separate Teams licenses. This transition aims to simplify offerings while also addressing antitrust concerns. Detailed information on the new product line up and pricing can be read here.
From a pricing perspective, the restructured suites are slightly less expensive, reducing by approximately $1 per user per month. However, adding a Teams subscription will incur an extra cost, around $5 per user per month. What I’m hearing = This strategic move seems to not only comply with regulatory demands but also provides Microsoft with an opportunity to open new revenue streams amidst the antitrust landscape.
Microsoft Copilot for Security
Microsoft Copilot for Security is generally available as of April 1st. This product will assist your security teams with:
- Incident Summarization
- Impact Analysis
- Reverse Engineering of Scripts
- Guided Response
This service will be licensed as a consumption based offer, meaning you can get started through your Azure portal and add this to your Azure subscriptions. It can be bought as a standalone Copilot experience or as an embedded experience. Both offers are provisioned through Azure’s Security Compute Units (SCUs) at the rate of $4 per hour.
New purchasing guide for MCA
Microsoft released an updated purchasing guide for the Microsoft Customer Agreement (MCA), accessible via this link. This comprehensive guide outlines the various purchasing pathways available under the MCA—web direct, Microsoft-assisted, or through a partner—providing insights into the advantages of each option for acquiring Microsoft subscriptions.
There’s a noticeable emphasis on the MCA, suggesting that it’s now a primary focus for Microsoft’s sales strategies. Recent developments indicate that the MCA is increasingly becoming a topic of conversation among sales teams in the US, with similar discussions also emerging in Western Europe.
Microsoft has developed dedicated training materials to help navigate the intricacies of the MCA, like a detailed step-by-step guide for onboarding to the MCA here.
Also check out our new YouTube series on the Microsoft Customer Agreement, covering everything from how to purchase, contract structure and pricing to comparisons between the EA vs MCA (more videos to come, stay tuned).
Product Terms updates
Privacy & Security Teams
Microsoft Defender for Identity has been added to the Privacy & Security Terms page on the Product Terms. The data at rest clause for Defender for Identity reads:
When Customer provisions a Microsoft Defender for Identity tenant to be deployed within an available Geo, then, for that service, Microsoft will store Customer Data at rest within that specified Geo except as noted in the Microsoft Defender for Identity Trust Center.
This means that it aligns with other Defender and M365 products, yet it’s important to stay informed about any updates, which can be found at the Microsoft Trust Center.
Microsoft 365
The licenses for M365/O365 without Teams have been added to the Product Terms and the Microsoft Teams Enterprise license. A clause was added to clarify that customers outside of EEA and Switzerland can acquire these suites and standalone Teams licenses. The licensing terms applicable are the same as for M365 licenses with a Teams license. These changes were similarly made to the Office 365 page of the Product Terms.
Dynamics 365
All From SA licenses have been removed from the availability table and the entire From SA entry has been removed from the page. This is in line with earlier statements about the end of From SA licensing for new customers. (Existing customers can still renew From SA licenses).
Dynamics 365 Supply Chain Management Premium has been added to the availability table. Like D365 Finance Premium, Supply Chain Management Premium requires a 10 user license minimum purchase.
Microsoft Intune
Endpoint Privilege Management Frontline Worker has been added to the availability table. The License Prerequisites table has been updated for readability as it became quite cluttered.
Service Provider Use Rights (SPUR)
On March 15th, an update was made to the Service Provider Use Rights (SPUR) document, specifying that Windows Server licenses obtained through the SPLA (Service Provider License Agreement) program do not include the rights to utilize the Azure Hybrid Benefit. Previously, it was understood that customers leveraging Windows Server under the SPLA model needed to acquire Azure services through a separate contract. This clarification reaffirms the necessity for a distinct contractual agreement to purchase Windows Server licenses if intending to take advantage of the Azure Hybrid Benefit.
