Effective October 1, 2024, Microsoft will implement a new definition of “External Users” for customers signing an enrollment or agreement on or after this date.
What is meant by “External Users”?
In the context of Microsoft agreements, “External Users” refer to individuals who interact with a company’s Microsoft services but are not considered internal employees or closely affiliated contractors. External users often require different licensing terms compared to internal users. On October 1, 2024, the official definition changes in the Product Terms.
Definition Change
The definition of “External Users” changes:
- Current Definition: “External Users” are users that are not employees, onsite contractors, or onsite agents of Customer or its Affiliates.
- New Definition: “External Users” are users that are not:
- Employees of Customer or its Affiliates.
- Contractors or agents that typically work for Customer or its Affiliates for more than 30 hours on average per week.
- Contractors or agents that typically work onsite for Customer or its Affiliates on each working day.
Does this concern my Microsoft contract?
The new definition will only apply to customers who sign an enrollment or agreement on or after October 1, 2024. Current agreements remain unaffected.
Why this change in definition?
As hybrid and remote work become more common, the updated definition better aligns with current work practices. It acknowledges that many contractors and agents may not work onsite or may work fewer hours. Therefore, a different classification was needed.
Concerned Products
The applicable products include:
- Microsoft Teams
- Office Servers
- Office for the web
- Office 365 Services that include Yammer
- OneDrive for Business
- SharePoint Online
- Microsoft Entra ID
- Dynamics 365
- Windows Server
- SQL Server
- Exchange Server
- Project Server
- SharePoint Server
- Skype for Business Server
- Azure DevOps Server
- Windows Multipoint Server
- Advanced Threat Analytics
- Microsoft Endpoint Configuration Manager
- System Center Data Protection Manager/Protection, System Center Orchestrator/Operations Manager/Service Manager
More information
Find the announcement here: https://www.microsoft.com/en-us/licensing/news/Update-to-external-users-2024.
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