As hybrid and remote work models become the new norm, businesses must adapt their operations and definitions to accommodate these changes. One important update in this regard is the revised definition of “External Users,” which reflects the realities of modern work environments. This new definition will impact several Microsoft products starting October 1, 2024, and here at BeSharp Experts, we’re here to support you in navigating 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 October 1, 2024, broadens this scope to accommodate modern work arrangements.
Under the new terms, “External Users” include:
- Individuals who are not employees of the Customer or its affiliates.
- Contractors or agents who work for the customer or its affiliates less than 30 hours per week on average.
- Contractors or agents who do not normally work on-site for the customer or its affiliates on any business day.
According to Microsoft, this refined definition is intended to provide greater clarity around licensing requirements and ensure a fairer representation of the modern workforce, where remote work and flexible work arrangements are increasingly common.
Affected 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 several 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 Access 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 organization
If your organization uses any of the Microsoft products listed above and you plan to sign an agreement on or after October 1, 2024, it’s critical to understand how these changes impact your licensing needs. The revised definition ensures that you’re properly accounting for all users under the new terms, which is essential for compliance and cost management.
Important considerations:
License 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 may impact your overall licensing costs.
How BeSharp Experts can help
Navigating licensing changes can be complex and time-consuming. At BeSharp Experts, we are here to help you interpret the new definition and ensure your licenses are aligned with the updated guidelines.
We offer comprehensive support, including:
- Impact analysis: Analyze how the new definition affects your user base and licensing requirements.
- License optimization: Developing a strategy to optimize your licenses under the new terms, potentially reducing costs.
- Ensuring compliance: Ensure your organization complies with the updated licensing terms, effective for companies entering into an agreement on or after October 1, 2024, to avoid legal or financial penalties.
Contact us now to schedule a consultation or 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 email info@besharpexperts.com or call us directly on +31 85-007 0484.
Note: This update only applies to customers who sign an agreement on or after October 1, 2024.