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The summer break is over and Microsoft is starting the fall with full force. There will be a fundamental reform of the Cloud Solution Provider (CSP) program that will turn everything upside down from October 2025 .

Let’s summarize what awaits us and what we need to know now.

Microsoft 365 in October 2025: These CSP Changes Partners & Customers Need to Know

The topic that caused the most buzz in September was, without a doubt, the official announcement of the new CSP guidelines. Starting October 1, 2025 , fundamental changes to the Microsoft Cloud Solution Provider (CSP) program will take effect that will directly affect both partners and customers.

The adjustments are aimed at more transparency, simplified licensing and respond to the EU decision to unbundle teams.

The most important changes

AmendmentImpact on partnersImpact on customers
Unbundling teamsPartners must offer Teams separately or in a bundle from October.Customers can license Teams without Office 365 and potentially save costs.
New licensing modelsNew SKUs such as “Microsoft 365 Business Basic without Teams” must be added to the portfolio.Cheaper options for customers who only need the Office suite.
Price adjustmentsHigher margins on long-term contracts (≥3 years) as an incentive.Price increases of around 5–10% are expected for monthly subscriptions.
Simplified provisioningA new, faster Partner Center API is becoming mandatory.Licenses are activated faster (within 24 hours instead of up to 48).
Stricter compliance checksQuarterly audits for data location & license usage will be introduced.Customers must be able to provide proof of use upon request.

Unbundling of teams from October 2025

The background to the massive change is the decision of the European Commission, which obliges Microsoft to no longer bundle Teams with Office 365. For CSP partners, this means a massive change in sales:

  • Teams as a standalone product: Offered for approx. €5.50/user/month.
  • Office 365 without Teams: New, cheaper SKUs such as “Microsoft 365 Business Basic without Teams” for about €4.20/user/month.

Recommended action for customers: Check the Teams usage! Does every employee really need a Teams license? Analyzes usage statistics in the admin center.

Mixed licenses (some with teams, some without) could bring significant savings starting in October. Caution in hybrid scenarios: Unbundling can cause calendar synchronization issues for on-premises Exchange servers.

Price adjustments and new incentives

Microsoft wants to bind customers and partners more closely to long-term contracts with a new pricing structure.

  • Annual contracts (≥3 years): Partners will receive a 2-3% increase in margin, which should translate into better pricing for wholesale customers.
  • Monthly subscriptions: Flexibility comes at a price. An increase of 5–10% is expected here, which will affect small and medium-sized enterprises (SMEs) in particular.

Strategy for customers: If you’re using Microsoft 365 strategically and for the long term, you should consider switching to an annual contract by the end of September to avoid the price increases.

Simplified provisioning & stricter compliance

The new Partner Center API, which will be mandatory from October, promises license activation within 24 hours. Partners can create automated workflows, such as PowerShell, for customer onboarding.

At the same time, Microsoft is tightening the reins on compliance, with quarterly audits checking data location (GDPR compliance) and license usage (no over-licensing). Partners and customers must ensure that licenses are deployed in the correct data center and that unused licenses are terminated in a timely manner.

Checklist for October 1, 2025

For a smooth transition, you should work through the following points now:

For CSP partners:

  • [ ] Customer analysis:
    Export a list of all customers and their current licenses. Who actively uses Teams, who doesn’t?
  • [ ] Customize offers:
    In Partner Center, create the new offers (with/without Teams, Teams Standalone).
  • [ ] Customer communication:
    Proactively inform your customers about the changes, opportunities and necessary steps. Use an email template to make recommendations for action.
  • [ ] API conversion:
    Familiarize yourself with the new Partner Center API and test the automated workflows in a sandbox environment.
  • [ ] Compliance check: Check your customers’ data location in the admin center (Einstellungen > Organisationsprofil > Datenstandort).

For customers:

  • [ ] Usage analysis:
    In the Microsoft 365 admin center (Berichte > Nutzung), check which employees are actually using Teams.
  • [ ] Define requirements:
    Decide which groups of employees will need a license with or without Teams in the future.
  • [ ] Check contract term:
    Consider whether it makes sense to switch from a monthly to an annual subscription to save costs.
  • [ ] Contact partners:
    Talk to your CSP partner by the end of September at the latest to have the licenses migrated by October 1.
  • [ ] GDPR compliance:
    Request confirmation from your partner about the correct data location of your services.

Act now … or pay accordingly later

The CSP changes in October 2025 are more than just an administrative adjustment. They offer the opportunity to optimize license costs and sharpen one’s own cloud strategy. At the same time, they carry the risk of higher costs for all those who do not act in time. The transition phase until the end of September is the last opportunity to set the right course. From October, there will no longer be a fallback option.

FaQ

QuestionAnswer
Do all customers have to switch to the new licenses?No, existing contracts continue to run. New customers will have to take advantage of the new options.
Can I add teams back later?Yes, but there are additional costs (no retroactive adjustment).
What happens to my Teams data?All data is retained – access depends only on the license.
Are there discounts for long-term contracts?Yes, there is a discount of up to 5% on 3-year contracts .
Can I use Teams with Google Workspace?Yes, Teams Standalone can be used independently of Office 365.

Further links & information

Collection of official links and documentation to dig deeper into the CSP changes and how to manage Microsoft 365.

General Microsoft resources

Resources for CSP Partners

Resources for Customers & Admins

Microsoft 365: CSP Changes October 2025

The summer break is over and Microsoft is starting the autumn at full speed. There will be a fundamental reform of the Cloud Solution Provider (CSP) program that will turn everything upside down starting October 2025.

Let’s summarize what to expect and what we need to know now.

Microsoft 365 in October 2025: These CSP Changes Partners & Customers Must Know

The topic that caused the most stir in September was undoubtedly the official announcement of the new CSP policies. Starting October 1, 2025, fundamental changes in the Microsoft Cloud Solution Provider (CSP) program take effect, directly affecting both partners and customers.

The adjustments aim for more transparency, simplified licensing, and respond to the EU decision on Teams unbundling.

The Most Important Changes

ChangeImpact on PartnersImpact on Customers
Teams UnbundlingPartners must offer Teams separately or in bundles starting OctoberCustomers can license Teams without Office 365 and potentially save costs
New License ModelsNew SKUs like “Microsoft 365 Business Basic without Teams” must be added to portfolioCheaper options for customers who only need the Office suite
Price AdjustmentsHigher margins for long-term contracts (≥3 years) as incentivePrice increases for monthly subscriptions of approximately 5-10% expected
Simplified ProvisioningA new, faster Partner Center API becomes mandatoryLicenses activated faster (within 24 hours instead of up to 48)
Stricter Compliance AuditsQuarterly audits for data location & license usage introducedCustomers must be able to provide usage proof upon request

Teams Unbundling from October 2025

The background to this massive change is the European Commission’s decision that requires Microsoft to no longer mandatorily bundle Teams with Office 365. For CSP partners, this means a massive shift in sales:

Teams as standalone product: Offered for approximately €5.50/user/month.

Office 365 without Teams: New, cheaper SKUs like “Microsoft 365 Business Basic without Teams” for approximately €4.20/user/month.

Action recommendation for customers: Check Teams usage! Does every employee really need a Teams license? Analyze usage statistics in the Admin Center.

Mixed licenses (some employees with, some without Teams) could bring significant savings starting October. Caution with hybrid scenarios: Unbundling can cause problems with calendar synchronization on local Exchange servers.

Price Adjustments and New Incentives

Microsoft wants to bind customers and partners more strongly to long-term contracts with a new pricing structure.

Annual contracts (≥3 years): Partners receive 2-3% higher margins, which should result in better prices for large customers.

Monthly subscriptions: Flexibility comes at a price. Here, an increase of 5-10% is expected, which will particularly affect small and medium-sized enterprises (SMEs).

Strategy for customers: If you use Microsoft 365 strategically and long-term, you should consider switching to an annual contract by the end of September to avoid price increases.

Simplified Provisioning & Stricter Compliance

The new Partner Center API, which becomes mandatory from October, promises license activation within 24 hours. Partners can create automated workflows, e.g., with PowerShell, for customer onboarding.

At the same time, Microsoft is tightening compliance controls. Quarterly audits check data location (GDPR compliance) and license usage (no over-licensing). Partners and customers must ensure that licenses are provided in the correct data center and unused licenses are canceled promptly.

Checklist for October 1, 2025

For a smooth transition, you should work through the following points now:

For CSP Partners:

  • [ ] Customer Analysis: Export a list of all customers and their current licenses. Who actively uses Teams, who doesn’t?
  • [ ] Adapt Offers: Create new offers in Partner Center (with/without Teams, Teams Standalone).
  • [ ] Customer Communication: Proactively inform your customers about changes, opportunities, and necessary steps. Use an email template to provide action recommendations.
  • [ ] API Migration: Familiarize yourself with the new Partner Center API and test automated workflows in a sandbox environment.
  • [ ] Compliance Check: Verify your customers’ data location in Admin Center (Settings > Organization Profile > Data Location).

For Customers:

  • [ ] Usage Analysis: Check in Microsoft 365 Admin Center (Reports > Usage) which employees actually use Teams.
  • [ ] Define Needs: Decide which employee groups will need a license with or without Teams in the future.
  • [ ] Check Contract Terms: Consider whether switching from monthly to annual subscription makes sense to save costs.
  • [ ] Contact Partner: Speak with your CSP partner by the end of September at the latest to have licenses switched by October 1.
  • [ ] GDPR Compliance: Request confirmation from your partner about the correct data location of your services.

Act Now… or Pay Accordingly Later

The CSP changes in October 2025 are more than just an administrative adjustment. They offer the opportunity to optimize license costs and sharpen your own cloud strategy. At the same time, they carry the risk of higher costs for those who don’t act in time. The transition period until the end of September is the last opportunity to set the course correctly. From October onwards, there will be no fallback option.

What do you think? How are you preparing for the CSP changes? Discuss in the comments!

FAQ

QuestionAnswer
Must all customers switch to the new licenses?No, existing contracts continue to run. New customers must use the new options.
Can I add Teams later?Yes, but additional costs apply (no retroactive adjustment).
What happens to my Teams data?All data remains preserved – access only depends on the license.
Are there discounts for long-term contracts?Yes, with 3-year contracts there are up to 5% discounts.
Can I use Teams with Google Workspace?Yes, Teams Standalone can be used independently of Office 365.

Additional Links & Information

Collection of official links and documentation to delve deeper into CSP changes and Microsoft 365 management.

General Microsoft Resources

ResourceLink
Microsoft 365 Roadmaphttps://www.microsoft.com/en-us/microsoft-365/roadmap
Official Microsoft 365 Bloghttps://www.microsoft.com/en-us/microsoft-365/blog/

Resources for CSP Partners

ResourceLink
Microsoft Partner Center Loginhttps://partner.microsoft.com/
Partner Center API Documentationhttps://learn.microsoft.com/en-us/partner-center/develop/
Partner Center Announcementshttps://partner.microsoft.com/en-us/resources/announcements

Resources for Customers & Admins

ResourceLink
Microsoft 365 Admin Center Loginhttps://admin.microsoft.com/
Microsoft 365 Licensing Overviewhttps://www.microsoft.com/en-us/microsoft-365/business/compare-all-microsoft-365-business-plans

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