Microsoft has published a clear update to Microsoft 365, Office 365 and Teams licensing that takes effect from 1 November 2025.
The key points are simple.
Suites that include Teams are once again available to all customers worldwide. Microsoft has reduced prices on suites without Teams and on Microsoft 365 F3, and it has raised prices for Teams Enterprise and Teams EEA to align with Enterprise price deltas
For procurement teams the change means three immediate actions.
First, check which Microsoft Licensing SKUs you currently buy and whether they include Teams. The November pricing restores global access to suites with Teams, so some customers can consolidate licences instead of buying Teams separately.
Second, re-run your cost modelling with the new USD price points from Microsoft’s tables. The published list gives enterprise, frontline and business tier numbers for suites with and without Teams, and for Teams standalone SKUs.
Third, review user segmentation and Teams rollout plans. If you were avoiding suite SKUs because of the Teams delta, you may now find a simpler commercial route that reduces complexity and total cost.
Microsoft Licensing teams and partners should also read the update as a renewal signal.
Partners can expect customer questions about licence optimisation, migration and billing. Dynamics 365 and Power Platform buyers should factor licence changes into wider estate plans, especially if Copilot or other AI services tie into Microsoft 365 entitlements. If you manage enterprise agreements or volume licensing contracts, open conversations with suppliers quickly so you can lock in options before renewal windows.
The pricing detail matters.
For example, the page lists Microsoft 365 E3 at $36 per user per month and Microsoft 365 E5 at $57. Suites without Teams show lower USD prices, with Microsoft 365 E3 (no Teams) at $27.45. Teams Enterprise and Teams EEA appear as standalone offerings priced at $8.55. For frontline and business tiers the update lists adjusted prices for F1, F3, Business Basic, Business Standard and Business Premium.
Use these exact figures when building internal business cases and vendor comparisons.
Compliance and regional buyers should note the caveat about currency and country variation. Microsoft’s list is in USD and may vary by market. Also check local reseller pricing and tax rules because the final invoice can differ from the USD table. For public sector purchasers, make sure procurement frameworks and supplier agreements reflect the new SKU availability and price deltas so you avoid surprises at renewal.
Finally, treat this as a chance to simplify.
Many organisations carry a mix of suites, add-ons and standalone Teams licences. With suites that include Teams reintroduced worldwide, some estates will benefit from consolidation, simplified licence management and clearer Microsoft Licensing governance. If you need help, map your user types, calculate total cost of ownership across new and old SKUs, and ask partners to model migration paths. That will show whether consolidation brings savings, better compliance, or operational simplicity.
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