The new "Microsoft Teams Essentials" license is here!

Short answer: Microsoft Teams Essentials is a standalone Teams license for 4 CHF/user/month that needs no Exchange Online or existing Microsoft 365 tenant - just meetings, chat, and collaboration for up to 300 participants.

As of today, December 1st 2021, the new Microsoft Teams Essentials license is available. This works as an independent license and is aimed at companies without an existing Microsoft 365 cloud infrastructure. The target audience are SMBs with up to 300 employees. For just 4 CHF, Teams Essentials gives you an independent solution that supports collaboration and online meetings.

One of the biggest selling points will be the independence from the mail system. This means no Exchange Online is needed. Existing mail systems, Exchange On-Premises, but also 3rd-party systems, can be used together with Teams Essentials as well.

What’s included in Microsoft Teams Essentials?

• 10GB cloud storage per user
• Meetings with up to 300 participants
• Unlimited group meetings, up to 30h
• Possibility for Teams telephony (add-on required)

The meeting features are not limited, just like with the classic Teams license, every meeting has a lobby, live reactions and captions, as well as the option for virtual backgrounds.
With Intune, just like with any other software deployment, company-specific virtual backgrounds can be distributed: Teams Background / Virtual Backgrounds - Intune | scloud

On the other hand, the following features are announced specifically for the new license and are supposed to be enabled in the coming weeks:

• Google Calendar integration
• Special group chat template for SMB customers

The official announcement from Microsoft can be found here: Introducing Microsoft Teams Essentials - Stories

FAQ

Do I need an existing Microsoft 365 tenant to use Teams Essentials?
No - it’s designed to work as a fully standalone license, independent of any existing mail or Microsoft 365 infrastructure.

Can I still use my current mail system alongside Teams Essentials?
Yes - Exchange On-Premises or third-party mail systems can be used in parallel; Teams Essentials just doesn’t require Exchange Online specifically.