Microsoft 365 and Teams License Update: What You Need to Know

Effective 1 November 2025, Microsoft is making global changes to how Microsoft 365, Office 365, and Teams are packaged and priced. 

What’s Changing?

Microsoft has announced several key updates:

• More Licence Options: Microsoft is reintroducing the option to buy Microsoft 365 and Office 365 suites with Teams included. This means you’ll have more flexibility to choose a package that fits your needs, whether you want Teams bundled in or not.

• Price Adjustments: There will be a clearer price difference between packages that include Teams and those that don’t. This change is meant to help customers better understand the value of Teams and choose the right mix of tools for their business.
  • Suites without Teams will become cheaper.
  • Standalone Teams licences will become more expensive.

• Global Impact: Although these changes were prompted by a European Commission agreement, they apply globally, including in Australia. So if you’re using Microsoft 365 or Teams, your pricing and options may change.

• Effective Dates
  • 1 October 2025: Microsoft released a preview of the new pricing.
  • 1 November 2025: The new pricing and packaging officially take effect.

What This Means for You

If you’re a business owner, manager, or IT decision-maker, these changes could affect your costs and how your team uses Microsoft tools. Here are some things to consider:

• Do You Need Teams? If your team uses Teams every day for meetings, chats, and collaboration, you may want to stick with a package that includes it. But if you rarely use Teams, or use other tools instead, you might save money by switching to a suite without Teams.

• Are You Paying for Teams Separately? If you currently buy Teams as a standalone licence, be aware that the price is going up. It might be more cost-effective to switch to a bundled suite that includes Teams.

• Time to Review Your Licences With these changes, it’s a great time to review your current Microsoft licences. Are you using all the features you’re paying for? Could you save money by switching packages? Diamond IT can help you answer these questions.

Microsoft Copilot in the News

You may have heard about a class action lawsuit involving Microsoft’s AI-powered tool, Copilot. The lawsuit claims that Copilot may have used copyrighted content without proper permission. Microsoft has responded by saying it’s committed to responsible AI development and is working to address the concerns.

What Does This Mean for You? If you’re using Copilot or thinking about it, this is a reminder to stay informed about how AI tools work and how they’re trained. Diamond IT is keeping a close eye on the situation and will provide updates as things develop.

How Diamond IT Can Help

Microsoft’s changes to Microsoft 365 and Teams are designed to give you more choice, but they also mean it’s time to take a closer look at your licences. Whether you’re trying to reduce costs, improve collaboration, or just make sure you’re getting the most out of your tools, Diamond IT is here to help.

Ready to review your Microsoft licences? We’re here to make technology work for you, not the other way around. Here’s how we can support you through these changes:

• Licence Review & Cost Optimisation: We’ll help you understand your current Microsoft setup and explore whether switching to a different package could save you money or give you better value.

• Clear Advice & Planning: We’ll explain the changes in plain language and help you plan ahead, so you’re not caught off guard when your renewal comes up or your costs change.

👉 Get in touch today. Reach us via phone on  1300 307 907, email us at enquiries@diamondit.com.au or fill out the form below.