As time marches on, Microsoft continues to refine and adjust its Product Terms. Our consultants have reviewed and analyzed the most significant updates for Q4 2024, ensuring you stay informed about the changes that matter most to your organization.

In this post, we summarize the key highlights from Microsoft’s latest Product Terms and explore their potential impact, helping you make the most of your Microsoft licensing strategy.

External Users

Microsoft has clarified the definition of External Users, providing a strict delineation between employees and non-employees. External users are individuals who:

• are not employed by a company nor its affiliates.
• do not typically work more than 30 hours per week on average.
• are  not onsite every working day.

While this update simplifies the definition, it raises questions about how organizations can evidence this distinction during an audit, particularly for large, complex organizations with varied workforces.

Tip: Clear tracking and documentation processes may be required to ensure compliance and mitigate risks.

Azure Arc-enabled Windows Server PAYG (Pay As You Go)

Microsoft continue to add additional small benefits for enabling Azure Arc on your on-premises machines. Customers may now utilise the pay-as-you-go subscription option for their connected servers, meaning there is a potential cost-saving to be had if the machines are running less than ~75% of the time.

The wording of this change has been questioned and put to Microsoft, as it implies one needs both a license and a subscription.

Tip: Organizations should carefully evaluate this update to identify cost-saving opportunities while ensuring their licensing approach aligns with Microsoft’s intent.

Windows 10 ESU (Extended Security Updates)

With Windows 10 reaching end of support in October 2025, Microsoft has updated its Product Terms to outline the Extended Security Update options for 2025-2027. The ESU model follows a similar structure to Windows Server ESU:

• Enrolment in Year 1 is mandatory to continue receiving updates in Years 2 and 3.

The cost of ESUs will increase incrementally:

• Year 1: 25% of the typical license cost
• Year 2: 50% of the typical license cost
• Year 3: 100% of the typical license cost

Notably there will be no cost for Azure-hosted Windows 10 clients.

Tip: Organizations should start planning their approach now—whether extending support through ESUs or transitioning to supported alternatives—to avoid security risks and unexpected costs.

Azure Maps

Microsoft has introduced new restrictions on the use of Azure Maps:

• It cannot be used to create a competing database or service
• It cannot be used to guide autonomous vehicles or integrate with a vehicle’s dashboard.

These restrictions highlight Microsoft’s intent to control specific use cases and prevent misuse of the service in competitive or high-risk environments.

Tip: Organizations leveraging Azure Maps should review their implementations to ensure compliance with these updated terms.

Name changes, Version updates, Availability Tables

• Version releases

Windows Server 2025 and System Center 2025 have been released.

No material changes to the terms of use compared to previous versions have been identified.

• Name changes

Project Plans have been renamed to:

• Project Plan 1 → Planner Plan 1
• Project Plan 3 → Planner & Project Plan 3
• Project Plan 5 → Planner & Project Plan 5.

Azure Stack API has been updated to Azure Local.

The following products have been added or updated in the Availability Tables:

• Microsoft Defender for Endpoint
• Office Desktop Applications (Windows)
• Office for Mac
• Windows Enterprise LTSC 2024
• Microsoft 365 A5 Security for Students
• GitHub Copilot Enterprise

These updates reflect Microsoft’s continued refinements to product positioning and availability. Organizations should review these changes to ensure alignment with their current licensing and deployment strategies.

For more information on how these updates could affect your company, contact the team at ITAA. We’re here to guide you through these changes and help you maximize the value of your Microsoft agreements.