For the first time in a long time, Microsoft have updated the definition of an External User, with the new term coming in effect for agreements signed from October 1, 2024 onward.
Current term
“External Users” refers to users that are not employees, onsite contractors, or onsite agents of Customer or its Affiliate
New term
“External Users” 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.
Adding in the amount of hours worked as a criteria means there will be a little more flexibility but also more work for organisations to define who is/isn’t an external user.
See the Microsoft announcement here – https://www.microsoft.com/en-us/licensing/news/Update-to-external-users-2024
Cloudy with a chance of Licensing 