Updated definition of “External users” in Microsoft license terms as of October 2024

The current definition of “External Users” in Microsoft’s license terms dates back to when most users were physically present. Due to remote office and a new way of working, Microsoft has been informed about an update on the definition of “External users” from October 2024. The changed definition applies to customers who sign a registration or contract from October 1, 2024.

Today, license terms state the following about External Users.

External Users means users that are not employees, onsite contractors or onsite agents of Customer or its Affiliates.

From October 1, 2024, it will be divided into three categories.

“External Users” will be modified for products that include External Users use rights in product terms. The new definition will refer to users that are not…
(a) employees of Customer or its Affiliates,
(b) contractors or agents that typically work for Customer or its Affiliates for more than 30 hours on average per week, or
(c) contractors or agents that typically work onsite for Customer or its Affiliates on each working day.

Microsoft includes affected products in the information.

  • Microsoft Teams
  • Office Servers
  • Office for the web
  • Office 365 Services that include Yammer (should be Viva Engage)
  • 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
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Tobias Asböck

Tobias is a Senior System Engineer with around ten years of professional experience with Microsoft 365 products such as SharePoint Online, OneDrive for Business, Teams Collaboration, Entra ID, Information Protection, Universal Print, and Microsoft 365 Licensing. He also has 15+ years of experience planning, administering, and operating SharePoint Server environments. Tobias is a PowerShell Scripter with certifications for Microsoft 365 products. In his spare time, Tobias is busy with updates in the Microsoft 365 world or on the road with his road bike and other sports activities.

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