Changes to Microsoft licences for schools

[Paul Stephen]

Hi.

The Ministry of Education has updated its website today and will publish articles in the Digital Download and School Bulletin this week, outlining  changes to Microsoft licensing affective from 1 January 2026.

Upcoming changes to Microsoft licensing for schools from 2026

Please share the following information with your IT teams and service providers:

• The Ministry of Education will continue to fund Microsoft server licenses in 2026 as we collect data and understand further needs. Schools are encouraged to review their current server usage and rationalise the number of remaining server licenses they consume. Reducing reliance on server licences will help lower costs and align with the Ministry’s broader digital strategy.
  To continue to access funded server licensing, schools must apply and complete the registration form by 3 October.
• The Ministry of Education will no longer fund Power BI and Teams Telephony services (external calling). The Ministry will move to funding A5 Security licenses, as most schools were not using these products provided under the previous licence. Schools can purchase Power BI and Telephony services (as an add-on) directly from Cyclone by completing the registration form by 3 October.

 

Future use of Microsoft or Google licences

Schools should only order Microsoft or Google licences that are actively in use. Additional licences can be requested if you need them. You do not need to maintain unused licence spares. This avoids additional costs to the education sector. 

Longer term, we encourage schools and IT service providers to use either Microsoft or Google software – not both (where possible.) This reduces the duplication of costs to the education sector.

 

New Microsoft and Google reporting tool

A new reporting tool is being deployed in schools and Kura to help with better informed decision making for Microsoft and Google license usage and funding.

This will require authorisation through a simple onboarding process by schools to collect this anonymised, non-personal data on license usage.

 

See the following link for more information about these changes:

Microsoft software licences for schools – Ministry of Education

Regards

Paul 
Cyclone

[Jono Hayes]

Hi Paul,

Why does Cyclone need to know the billing contact for each school, and is there a way to submit this information in bulk e.g. can I provide it this in a Excel Spreadsheet?

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[Paul Stephen]

Hi Jono

We only need the billing contact where additional products will need to be requested e.g. Teams Telephony services.

We will create and share a excel file that MSP's can use.  If you are an MSP and your company didn't receive an email from me around this change, please send me your details and I will add you to my list of MSP.

Regards

Paul

[Arnold Santos]

Regarding the future use of Microsoft and Google licenses where you have to choose one platform, most of the school I'm handling is predominantly using Google for their official communications but when they are dealing with people specially with the MInistry, or those professionals doing a PD,  they need to use the MS apps to open the docs/presentation.spreadsheet where some of the macros, templates, etc. has to be retained. That is why we have to deploy the MS apps for those staff, especially those working in the office. Does it mean we have to purchase a MS license specially for this purpose?

Regards,

Arnold

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Arnold B. Santos   |   ICT Support Technician   | www.arrowtown.school.nz

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[Shannon McDougall]

We have had this in the past from the ministry

"Please find attached the school enrolment report for you to complete and send to us at school.t...@education.govt.nz as an attachment. Due to auditing requirements we are unfortunately unable to accept google documents and similar as we require a copy that cannot be subsequently edited in the cloud."

"It's not who I am underneath, but what I do that defines me."

Leaves of Te Noho Tahi

Kā mihi nui

Mr Shannon McDougall

Principal

Tokoiti School

On Thu, 11 Sep 2025 at 11:32 AM, Andrew Hood <andre...@n4l.co.nz> wrote:

Hey Arnold,

Posting this as a wider issue about Information Management and Security. It really frustrates me when organisations use Word or Excel as a data gathering tool, as the next step is to normally Email the form somewhere. I did a talk at ChCon a couple of years ago about the data issues that creates.  If people have got actual examples of forms from MoE or other bodies that are pushing users to have to install Word or Excel then can people give me some examples? I have heard anecdotally that this is happening for years, but it would be great to have some examples to help fix the issue. 

Thanks,

Andrew 

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[Marlon Yu]

Hi Paul,

 

Some of us are not running Windows Server VMs on Hyper-V. I’ve still answered the questions on number of CPU and no of cores but left the Windows Edition blank.

 

Hopefully, that does not cause any problems.

 

Marlon

 

From: 'Paul Stephen' via Techies for schools <techies-f...@googlegroups.com>
Sent: Tuesday, September 9, 2025 1:52 PM
To: Techies for schools <techies-f...@googlegroups.com>
Subject: [techies-for-schools] Changes to Microsoft licences for schools

 

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[Raewyn Nicholson]

Hey team, 

Anything Ministry of Education, Worksafe are all Microsoft.  Our SMS Hero also exports or saves everything to Excel.

We are a Google school, still need that Microsoft.

cheers

Raewyn Nicholson

Administrator

09 627 9940

This communication is confidential and may contain privileged material. If you are not the intended recipient you must not use, disclose, copy or retain it.  If you have received it in error please immediately notify me by return email and delete the emails.  Thank You

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[Stephen Caustick]

Hey team,

My view from a high school perspective is that Google is very rarely used in higher education or industry, so Microsoft needs to be pushed from Year 9 onwards. I have a speech I give out to BoT and staff, "The students who don't care, just don't care. The students who do care need to have full exposure to Microsoft products"

I see that might not be everybody's opinion. My daughter is in Year 6, and she loves Google products. Office 365 online applications work fine on Chromebooks.

Gemini appears to be a better AI solution to Co-Pilot at the moment, which is a worry if we need to choose between Google and Microsoft in the future.

Just my 2 cents.

Thanks,

To view this discussion visit https://groups.google.com/d/msgid/techies-for-schools/CAOScQRGsKzpM70BSGVh10dH0YafSpNW5b-r4%2BGNLojysu0TWZA%40mail.gmail.com.

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Stephen Caustick

IT Technician

Hastings Boys' High School

(06) 8730365 ex 847

[Jeffrey Burke]

Ministry of Health did their COVID fill ins in Excel, MoE forms like here

https://www.education.govt.nz/education-professionals/schools-year-0-13/funding-and-financials/managing-staffing-usage-banking-staffing/apply-funding-code-adjustment-or-banking-staffing-credit

I don't think the solution is pushing everyone to Google either although that seems to be the aim of some at the MoE.

I do think that Microsoft solutions should be avalible as well. They are still widely used and offer more options than Google can provide without a bunch of extra apps and plug-ins.

Jeffrey.

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From: techies-f...@googlegroups.com <techies-f...@googlegroups.com> on behalf of Stephen Caustick <step...@hastingsboys.school.nz>
Sent: Thursday, September 11, 2025 5:26:47 PM
To: techies-f...@googlegroups.com <techies-f...@googlegroups.com>
Subject: Re: [techies-for-schools] Changes to Microsoft licences for schools

 

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[Adam Alexander]

What about those of us who have Google identities but also extensively use Minecraft:EE 🥺?

[Matt Strickland]

I started to fill in the form but we also don't run Windows Servers on Hyper-V... It feels like the form implies this or am I wrong?

So I assume they want to know how many VM servers with their current core allocation?

Or rather I thought it would have been the number of current servers (and edition) with maximum core count available by the host.

Matt

[Stephen Moran]

I was wondering about that form, @cyclone does it only need to be completed by those using Microsoft Server licensing, PowerBi and Teams Calling?  The messaging below implies as such but the wording elsewhere is less clear.

Stephen

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[Steve Smith - Google for Education NZ]

Kia Ora all,

I noticed Alex's comment above about running with Google identity.

I am building up a list of schools who are using this method of identity.

If you are running a google identity service as opposed to MSFT Could you please email me off thread at nzsteve @ google.com 

Many thanks 

Steve

[Matt Strickland]

The forms changed a little now so the physical/virtual is a bit more clear.

I'm confident its only needed to be filled in for those using Windows Server products and/or PowerBi/Teams Calling.

The Windows Server is so they can group a package together to pay Microsoft for server licences for schools in 2026.

The PowerBi/Teams is for those schools using the extras of the A5 licence so they can quote you those costs for 2026 as its not included in A3.

One annoying thing with A1 vs A3/A5 is I can't set a user a primary user of a device with an A1 licence which means they can't use Company Portal / self install software.

So they end up with a full licence, when they may not directly need one (don't need the office apps, but do need the other stuff)

Matt

[Jeffrey Burke]

A1 for support staff realy does hamper the ability to use things properly. A1 does not include a Windows upgrade licence and no Intune licence for device managment (needed if pushing to remove local AD).  Many of these staff are on shared devices and many use desktop apps for managin/labeling resources and a host of other tasks.  While it can be made to work its going back to the bad old days of a bunch of half solutions rather than a unified one.

Jeffrey.

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From: 'Matt Strickland' via Techies for schools <techies-f...@googlegroups.com>
Sent: Monday, September 15, 2025 11:52:46 AM

To: Techies for schools <techies-f...@googlegroups.com>

Subject: Re: [techies-for-schools] Re: Changes to Microsoft licences for schools

 

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[Paul Stephen]

Hi Stephen

You should have received an excel file from me to make this easier.  If you could either complete the form or spreadsheet for all schools you manage this way we have a complete dataset for the Ministry.  

Thanks
Paul

On Monday, 15 September 2025 at 11:43:42 UTC+12 ste...@entity.nz wrote:

[Paul Stephen]

Hi

Thank you for the feedback in this tread about usage of products in schools and some of the challenges, this information is useful for us to provide back to the Ministry.

Paul

[Matt Strickland]

You're right Jeffrey,

I'm happy to move to cloud as a first strategy so reducing/removing Windows Server licences is fine, but the flipside is for any staff using any school owned device I want to have a A3/A5 licence. Not because of Office, but the OS licence/intune/management set. Most of our relievers and teacher aides have school devices (ex Tela etc) along with support staff, ie A3/A5.

The only users I assign A1 are those using a personal phone. (I discourage personal staff laptops just for theft/damage onsite etc)

Itinerant music teachers, and a few outside users like The Whatu Ora Nurse, Kāhui Ako (attached to a different school) get an A1 licence.

I may ask for more A3 staff licences as we move more to the cloud.

Matt

[Simon Wright]

Yes, the amount of non-teaching staff that have school laptops requiring more than A1 is seemingly ever growing. I'm maxed out with A5, got a bump a little while ago, but will need to ask for more or at least pay for more. Or reduce the A5 licensing and get some A3.

I see here: https://learn.microsoft.com/en-us/office365/servicedescriptions/office-365-platform-service-description/microsoft-365-education

That both intune and Defender for Endpoint arent included with any variant, so presumably these are add-ons to the A5 for the MoE licences.

Actually looking at the difference between A3 and A5, i would be happy to drop back to A3 licences if i can get more licences with intune and defender for endpoint tacked on.

Simon.

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[te...@whs.ac.nz]

The A1 licensing for only some staff has been my number one issue with licensing ever since its inception and the removal of site based licenses. So much so i have complained about it nearly every year since.

Huge PITA, and as mentioned, seems to be a half baked solution to a problem (funding presumably) which just introduces many more headaches.

All staff - Full time teachers, part time teachers, relievers, teacher aides and support staff of many varieties REQUIRE these A3 licenses to actually use a functional piece of software. We based office is not the same experience.

[Sue Way]

I find it interesting the MoE say A1 licences for Support staff..

We have some support staff, IT, Front office staff, Finance and Sports Co-ordinators are on their School owned Laptops all the time and use the desktop version, pushing them to the  M365 Cloud would push my rellationship with them over the edge. Our teacher aides currently use Chromebooks as most student stuff is Google.

We have quite a few teaching positions who are doing a job share arrangement so both need a Laptop and licences. My allocation of licences is a balancing act at the best of time. I currently have 2 spare.

On another note, is anyone going to sign up for the Licences pilot with MoE and Cyclone?

I have spent so much time juggling licences in the last 2 years for staff that I have an intamate relationship with the current consoles so find it hard to see the benefit.

Sue Way | IT Services Director (she, her)

Te Kura Manawaroa o Pipitea | Wellington Girls' College

Pipitea Street, Thorndon, Wellington 6011  

[Jono Hayes]

Hi Paul,

Could you please clarify whether the data collected by Cyclone on behalf of the Microsoft School Agreement and TELA is accessed internally by Cyclone’s sales and marketing teams, or if there are data segregation measures in place?

I think members of this Google group would appreciate it if you could outline Cyclone’s position on this matter and share your privacy policy. The information we are providing is commercially sensitive, and I would expect that data segregation forms part of Cyclone’s agreements with the Ministry of Education.

On a related note, I was a little disappointed that after one of our school completed your form, the only follow-up from Cyclone was an attempt to sell a product the school doesn’t even use...

Hello,

Thank you for taking the time to complete the registration form regarding your Microsoft licensing requirements for 1 January 2026.
You’ve indicated that additional licensing may be required. Please find our quote for these options below
Teams Phone Standard per user | LK7-00001 : $54.43+GST (coverage from 1 Jan 2026 - 31 Dec 2026 - Price will be confirmed via formal quote)
Power BI Pro per user | NK5-00001 | $38.23+GST (coverage from 1 Jan 2026 - 31 Dec 2026 - Price will be confirmed via formal quote)
M365 A5 Step Up per user | AAD-38401-SU | (coverage from 1 Jan 2026 - 31 Dec 2026) : $20.65+GST - Qty of A5 step-up must match qty of A3 Faculty licenses when ordered - only AVAILABLE at anniversary.
After you’ve confirmed the quantities required, we’ll prepare a formal quote for your review. If you choose to proceed with this quote, simply confirm via email, and we’ll arrange for the licenses to be ordered in line with your anniversary order with the Ministry of Education.
If you have any further queries please let us know.
Cyclone NZ Schools Team

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[Paul Stephen]

Hi Jono

Any data collected by Cyclone under these agreements is managed separately and securely. Before using data for any purpose, including updates such as the recent TELA+ Apple update, we must first seek explicit permission from the Ministry of Education.

 

The TELA+ team within Cyclone operates independently, with its sole focus being support for the TELA+ agreement. In parallel, our software team manages Microsoft school engagements, with dedicated resources assigned to each stream. All staff involved in these roles are contractually obligated to maintain complete discretion.

 

Staff are regularly reminded that access to customer data and Cyclone systems is permitted only when required to perform their allocated responsibilities. Any unauthorised access or misuse of data would be treated as serious misconduct.

Paul Stephen

NZ Government Sector Lead
Cyclone

[Paul Stephen]

Just to add to my previous post.  If you ever have concerns over the use of data, please contact me paul.stephen at cyclone.co.nz.