Bowing to stress, Microsoft unbundles Teams from Microsoft 365 worldwide

Teams is being decoupled from the other Office apps worldwide, six months after Microsoft did the same thing for the EU.
Enlarge / Teams is being decoupled from the opposite Office apps worldwide, six months after Microsoft did the identical factor for the EU.

Microsoft/Andrew Cunningham

Months after unbundling the apps within the European Union, Microsoft is taking the Office and Teams breakup worldwide. Reuters stories that Microsoft will start promoting Teams and the opposite Microsoft 365 apps to new business clients as separate merchandise with separate worth tags starting right this moment.

This is a win for different workforce communication apps like Slack and videoconferencing apps like Zoom, each of which predate Teams however have not had the advantages of the Office apps’ large established consumer base.

The separation follows an EU regulatory investigation that began in July of 2023, nearly precisely three years after Slack initially filed a grievance alleging that Microsoft was “abusing its market dominance to extinguish competitors in breach of European Union competitors legislation.”

In August of 2023, Microsoft introduced that it might be unbundling the apps within the EU and Switzerland in October. Bloomberg reported in September that Zoom had met with EU and US Federal Trade Commission regulators about Microsoft, additional ratcheting up regulatory stress on Microsoft.

In October, Microsoft European Government Affairs VP Nanna-Louise Linde described the unbundling and different strikes as “proactive modifications that we hope will begin to deal with these issues in a significant method,” although the EU investigation is ongoing, and the corporate could but be fined. Linde additionally wrote that Microsoft would enable third-party apps like Zoom and Slack to combine extra deeply with the Office apps and that it might “allow third-party options to host Office net functions.”

Reuters says that present Microsoft 365 clients who need to preserve utilizing the Office apps and Teams collectively can proceed to subscribe to each at their present costs. New clients can have the choice of subscribing to both or each: a Teams subscription will begin at $5.25 per consumer per 30 days, whereas the Office apps will begin at $7.75 per consumer per 30 days and go as much as $54.75 per consumer per 30 days relying on the subscription tier.

Whether this represents a worth enhance or lower relies on the precise Microsoft 365 product you are evaluating it to; the Microsoft 365 Apps for Business subscription gives simply the Office desktop apps and 1TB of OneDrive storage for $8.25 per consumer per 30 days, 50 cents greater than the brand new worth for Office with out Teams. But the worth for subscribing to Teams and Office collectively goes as much as $13 per consumer per 30 days, 50 cents greater than the present Microsoft 365 Business Standard subscription.

Microsoft gives such a variety of merchandise and pricing throughout all of its enterprise, enterprise, authorities, and nonprofit tiers that it is tough to make direct comparisons with out extra info. We’ve contacted Microsoft for clarification and can replace if we get a response.

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