Microsoft licensing changes: What they mean for you and how to prepare

This blog was originally published by Softchoice, a World Wide Technology co.

Microsoft has announced significant changes to its Microsoft 365 and Office 365 licensing structure, set to take effect globally on November 1, 2025. These changes stem from commitments made to the European Commission, but they will impact customers worldwide, including those in Canada.

At WWT and Softchoice, we understand that licensing changes can feel complex and disruptive. That's why we're breaking down what's happening, what it means for your organization, and how you can proactively prepare to ensure continuity, cost-efficiency and strategic alignment.

What's changing?

The core update is that Microsoft will begin offering Microsoft 365 and Office 365 suites with or without Microsoft Teams. This unbundling gives organizations more flexibility in how they choose to collaborate, especially if they're using alternative tools such as Zoom, Slack, or Google Meet.

In addition to this, Microsoft is introducing minimum price differences between the bundled and unbundled versions of its suites.

Why this is changing

These updates stem from Microsoft's commitment to the European Commission to resolve competition concerns around the bundling of Microsoft Teams with Microsoft 365 and Office 365. Regulators argued that including Teams by default could limit customer choice and disadvantage competitors.

While the regulatory case was centered in Europe, Microsoft has chosen to apply these changes globally. This means that customers in Canada and around the world will see the same unbundled suite options and pricing differences. Microsoft's intent is to improve transparency, provide more choice and simplify licensing for customers everywhere.

Who this impacts (and who it doesn't):

Impacts:

Enterprise and commercial customers worldwide who license Microsoft 365 or Office 365 suites under volume agreements.
Organizations that rely on multi-year renewals, since future renewals will reflect the new packaging and price structures.
Businesses using alternative collaboration tools alongside Microsoft 365, who may now benefit from lower-cost "no Teams" options.

Doesn't Impact (or minimal impact):

Customers in Education or U.S. Government programs, where pricing and packaging remain unchanged.
Small organizations already buying at list price, since they weren't benefiting from volume bundling discounts.
On-premises software licensing, which is not affected by this update.

What this means for you

These changes present an opportunity to re-evaluate your licensing strategy and ensure you're getting the most value from your Microsoft investment.

Here are our top recommendations:

Conduct a license optimization assessment

Our team can help analyze your current license usage, identify gaps or inefficiencies, and recommend a mix that better suits your needs—whether that includes Teams or not.

If your organization is using multiple collaboration platforms, this is a great time to assess which option is the best fit. We can help you compare tools, evaluate interoperability, and make strategic decisions that support productivity and cost-efficiency.

This is a great moment to align your licensing with actual usage and business priorities.

Plan your renewals proactively

If your organization is currently using a suite with Teams included—or has recently transitioned to an unbundled version—your next renewal may come with new pricing and packaging options. Understanding these changes early will help you avoid surprises and make informed decisions.

If your renewal is coming up in the next 6–12 months, now is the time to start planning. Understanding how the new pricing and bundling options affect your current setup will help you avoid surprises and make informed decisions.

Softchoice can help build a roadmap tailored to your renewal timeline and business needs.

How WWT and Softchoice can help

We're more than a licensing provider—we're your strategic partner. Our experts are ready to help you navigate these changes with confidence, ensuring your Microsoft environment is optimized, compliant and future-ready.

We're committed to guiding you through these changes with:

Expert-led renewal planning
License optimization assessments
Strategic guidance on collaboration tools and Microsoft ecosystem alignment

No matter where you are in your Microsoft journey, whether mid-contract, approaching renewal, or just re-evaluating collaboration tools, Softchoice can help you chart the right course.

If you have questions about how these changes affect your organization, or if you'd like to start planning your renewal strategy, reach out to your WWT or Softchoice account team.

We're here to help you turn change into opportunity.