As hybrid and remote work models become the new standard, businesses must adapt their operations and definitions to align with these changes. A critical update in this area is the revised definition of “External Users,” reflecting the realities of modern work environments. Starting October 1, 2024, this new definition will impact various Microsoft products, and here at BeSharp Experts, we’re here to help you navigate these changes.
Understanding the updated definition
Previously, “External Users” were defined as individuals who were neither employees, onsite contractors, nor onsite agents of a customer or its affiliates. The updated definition, effective from October 1, 2024, broadens the scope to accommodate contemporary working arrangements.
Under the new terms, “External Users” will include:
- Individuals who are not employees of the customer or its affiliates.
- Contractors or agents working for the customer or its affiliates for less than 30 hours on average per week.
- Contractors or agents not typically working onsite for the customer or its affiliates on each working day.
According to Microsoft, this refined definition is designed to offer more clarity on licensing requirements and ensure a fairer representation of modern workforces where remote and flexible working arrangements are common.
Impacted products
The updated definition of “External Users” will apply to a broad range of Microsoft products that include External User use rights. These products span various categories including collaboration tools, server software, and management solutions:
Collaboration Tools
- Microsoft Teams
- Office for the web
- Office 365 Services (including Yammer)
- OneDrive for Business
- SharePoint Online
Server Software
- Windows Server
- SQL Server
- Exchange Server
- Project Server
- SharePoint Server
- Skype for Business Server
Management Solutions
- Microsoft Entra ID
- Dynamics 365
- Azure DevOps Server
- Windows Multipoint Server
- Advanced Threat Analytics
- Microsoft Endpoint Configuration Manager
- System Center Data Protection Manager
- System Center Orchestrator
- System Center Operations Manager
- System Center Service Manager
What this means for your business
If your business uses any of the above Microsoft products and you plan to sign an enrollment or agreement on or after October 1, 2024, it’s crucial to understand how these changes affect your licensing needs. The revised definition ensures you’re correctly accounting for all users under the new terms, which is vital for compliance and cost management.
Key considerations:
Licensing compliance: Review your current user base to determine who qualifies as an external user under the new definition.
Cost management: Adjust your licensing strategy to align with the updated terms, which might impact your overall licensing costs.
How BeSharp Experts can help
Navigating licensing changes can be complex and time-consuming. At BeSharp Experts, we’re ready to assist you in interpreting the new definition and ensuring that your licensing aligns with the updated guidelines.
We offer comprehensive support to help you:
- Assess the impact: Analyze how the new definition affects your user base and licensing requirements.
- Optimize licensing: Develop a strategy to optimize your licensing under the new terms, potentially reducing costs.
- Ensuring compliance: Ensuring that your organization complies with the updated licensing terms, applicable to businesses signing agreements on or after October 1, 2024, to avoid legal or financial penalties where applicable.
Contact us now to schedule a consultation or to learn more about how we can help you navigate this update.
For more information or to get in touch with one of our experts, please send an email to info@besharpexperts.com or call us directly at +31 85-007 0484.
Note: This update will only apply to customers who sign an enrollment or agreement on or after October 1, 2024.