Life just got simpler: You can now buy Microsoft 365 and Office 365 bundled with Teams, for the same price as buying each product separately.
On November 1, 2025, Microsoft introduced several changes to its licensing and pricing for its most popular productivity suites. The most notable change is that you can once again purchase Microsoft 365 and Office 365 suites that include Teams (or you can opt for one without Teams).
If you choose a suite without Teams and later purchase Teams separately, your total cost is the same as if you had bought the combined suite.
Keeping up with changes to Microsoft licensing programs demands both time and expertise. If you're unsure which direction to take, contact us and we’ll help you navigate to the best options for you.
Buying a suite that includes Teams simplifies your licensing. With fewer licenses to manage, keeping track of them is easier and takes less time. This change also provides greater flexibility, letting you pick the suite that best fits your needs without incurring the cost of Teams for employees who don’t use it. With simpler pricing, you won’t have to worry about which option offers the best value.
As before, if you don’t use Teams, you can still buy Microsoft or Office 365 without it.
These changes are the result of an agreement that Microsoft reached with the European Union. For some time, the EU has expressed concern about Teams' inclusion in Microsoft’s most popular product suites. In 2024, Microsoft responded by offering suites without Teams to address these issues. While some viewed this as a positive step, others believed additional changes were necessary, since purchasing the apps separately was more expensive than buying the bundle. Companies that compete with Teams, like Slack, argued that this gave Microsoft an unfair advantage.
The latest deal means buying a combined suite or buying the products separately costs the same (as we write this, there are a few exceptions; more details follow the table). While the agreement is with the EU, Microsoft is making these changes globally and has committed to doing so for seven years.
|
Microsoft 365 and Office 365 suites |
Minimum price difference between options with and without Teams |
|
Microsoft 365 E3/E5, Office 365 E3/E5 |
$8.55 USD (€8.00) |
|
Microsoft 365 Business Standard/Premium, Office 365 E1 |
$3.21 USD (€3.00) |
|
Microsoft 365 Business Basic |
$1.60 USD (€1.50) |
|
Microsoft 365 F3 |
$1.07 USD (€1.00) |
|
Teams standalone |
Minimum price |
|
Microsoft Teams Enterprise/Microsoft Teams for EEA (European Economic Area) |
$8.55 USD (€8.00) |
|
Microsoft Teams Essentials |
$3.21 USD (€3.00) |
|
No pricing or packaging changes have been announced for: |
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This reshuffling of product suites is the second major change to Microsoft's licensing in 2025. Earlier this year, Microsoft announced major changes to its Enterprise Agreement (EA) program. Those changes are separate from the new Teams-related modifications but are perhaps more important. Our blog post, Don't Be Caught by Microsoft's November 2025 Licensing Changes, goes into detail on that topic and is worth reviewing.
These changes will be applied starting from your renewal date. Until that time, your prices remain the same. For example, if your renewal date is February 1, 2026, and you are on a month-to-month subscription, your price will remain the same until then. After February 1, 2026, you will be subject to the new pricing structure.
At your first renewal after November 1, 2025, your licenses will automatically update to Microsoft’s new pricing structure. This means the price for Teams standalone, Microsoft 365 without Teams, and Office 365 without Teams will change to the latest global list price, and new versions of those suites with Teams will become available.
If you are buying Teams standalone licenses and a Microsoft or Office 365 suite today, consider switching to a suite that includes Teams. This approach will give you fewer licenses to manage.
TIP: Choosing a longer-term prepaid agreement (one, two, or three years) can help you avoid monthly premiums and lock in your pricing at today’s rates, providing stability and potential savings compared to month-to-month billing. Moving to a three-year agreement comes with significant savings.
If you're unsure about the best direction to take, Fusion Connect is ready to provide personalized guidance.
Here's how it works:
Our team assesses your current Microsoft subscriptions and recommends solutions that align with your organization's budget and needs.
We provide clear explanations of the licensing changes, ensuring you understand your options without any confusing jargon.
If you decide to switch packages, Fusion Connect handles the administrative details, minimizing disruptions to your business.
We ensure you receive all applicable discounts and take advantage of any Microsoft promotions running at the time.
We're here for you even after the setup. Fusion Connect is available to answer your questions, resolve any issues, and keep you informed about future changes.
The upcoming changes to Microsoft 365, Office 365, and Teams licensing and pricing result in more choice and flexibility. Fusion Connect can help you understand how these changes might affect you, and what options are available, so you can make informed decisions that optimize your Microsoft investments. If you have questions, don't hesitate to reach out!