Upcoming Microsoft Licensing Changes: What Your Business Needs to Know

As a Microsoft licensing partner and expert in New Commerce Experience (NCE), Lume Strategies is here to keep you informed on major upcoming changes that could impact your organization’s Microsoft ecosystem. Microsoft is planning several licensing changes, including the phase-out of Windows 10 in 2025, the decoupling of Teams from standard licensing, and updates to NCE policies. Here’s what you need to know to prepare. 

Windows 10 Support Ending in 2025 

Microsoft has announced that Windows 10 will officially reach the end of support on October 14, 2025. For organizations still relying on Windows 10, this means security patches, feature updates, and technical support will no longer be available. Operating on an unsupported system increases security risks, as vulnerabilities will no longer be addressed, leaving your systems exposed. 

What You Should Do Now: 

  1. Evaluate Your System Needs: Start assessing how many of your devices are currently on Windows 10. This is also a good time to consider whether an upgrade to Windows 11 or migration to Windows 365, Microsoft’s cloud PC solution, might be the best fit. 
  2. Budget for Upgrades: If your organization requires a significant number of new licenses or hardware to support the upgrade, consider starting budget discussions early to avoid any last-minute surprises. 
  3. Work with Lume Strategies: We can help assess your needs, guide you through the upgrade process, and provide insights into the best solutions for a seamless transition to a supported platform. Learn more here.  

Microsoft Teams Decoupling from Licensing 

Another significant shift is Microsoft’s decision to decouple Teams from its standard licensing packages. Beginning with renewals, customers who currently use Teams will need to purchase a separate add-on license to continue using the platform. For organizations that rely on Teams for collaboration and communication, it’s essential to plan for this change in advance to ensure uninterrupted access. 

What This Means for You: 

  • Additional Licensing Costs: After your current licensing expires, if your organization uses Teams, you will need to purchase a new Teams add-on to maintain functionality. 
  • Evaluate Team Alternatives or Budget for Add-ons: Microsoft Teams remains an industry-leading platform for collaboration, so if your organization plans to keep using it, factoring the cost of the add-on into your budget will be necessary. 

NCE and Changes to Subscription Management 

Microsoft’s New Commerce Experience (NCE) is part of an ongoing effort to streamline and simplify its licensing model. NCE brings flexible term options but also requires organizations to commit to specific subscription terms, impacting organizations that need flexibility. 

Key Changes Under NCE: 

  • Subscription Flexibility: With NCE, Microsoft offers annual, multi-year, and monthly subscription plans. Each plan has different pricing structures, and annual or multi-year plans offer cost savings but limit the ability to scale down seat counts until renewal. 
  • Early Commitment Benefits: Microsoft offers incentives for early renewals and multi-year commitments. However, organizations that need greater flexibility might find monthly plans more manageable despite slightly higher per-user costs. 

How to Prepare: 

  1. Review Usage and Licensing Needs: Take a close look at your organization’s current usage and licensing needs. Consider which NCE plan best suits your growth plans and budgeting requirements. 
  2. Plan for Flexibility: For organizations with seasonal workforces or fluctuating team sizes, NCE’s monthly subscription option can provide the flexibility to adjust user counts as needed. 
  3. Consult with Lume Strategies: We can help you navigate the changes under NCE and determine the optimal licensing approach for your business model, whether it’s an annual commitment, a flexible monthly plan, or a strategic mix. 

Preparing for the Changes Ahead 

At Lume Strategies, we understand that Microsoft’s evolving licensing structure may seem overwhelming, but with the right guidance, you can navigate these changes effectively. Our team specializes in helping clients maximize the value of their Microsoft investments, and we are here to support your transition to Windows 11, assist with Teams licensing changes, and ensure you get the most out of the New Commerce Experience. 

Reach out to us today to discuss your licensing needs and prepare your organization for the upcoming Microsoft changes.