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Microsoft Unbundles Office and Teams Worldwide
Microsoft’s decision to unbundle its Office and Teams applications globally comes months after a similar move in the European Union. The decision, reported by Reuters, entails selling Teams and other Microsoft 365 apps as individual products with separate pricing for new commercial customers, effective immediately.
This strategic shift by Microsoft is seen as a significant development in the realm of team communication and video conferencing. With the unbundling of Office and Teams, competitors like Slack and Zoom gain a more level playing field, where they can now attract users without being overshadowed by Microsoft’s expansive user base.
Evolving Regulatory Landscape
The unbundling decision stemmed from an EU antitrust investigation initiated in 2023, reacting to a complaint filed by Slack. The investigation raised concerns about Microsoft’s market dominance and potential anticompetitive practices, prompting regulatory intervention.
In response to this scrutiny, Microsoft first unbundled the apps in the EU and Switzerland before deciding to extend the unbundling globally. Regulatory pressure further intensified with Zoom engaging with EU and US regulators to address competition concerns related to Microsoft Teams.
Microsoft’s European Government Affairs VP described these changes as proactive measures aimed at addressing regulatory concerns more effectively. Despite these actions, the ongoing EU investigation may still lead to fines for Microsoft.
Subscription Pricing and Options
For existing Microsoft 365 customers, the choice to retain both Office apps and Teams together remains, without impacting current subscription prices. However, new customers now have the option to subscribe to Teams, Office apps, or both, with separate pricing structures.
Teams subscriptions will start at $5.25 per user per month, while Office apps will range from $7.75 to $54.75 per user per month, depending on the subscription tier chosen. The impact on pricing varies based on the comparison made with different Microsoft 365 products.
Notably, the new pricing structure may pose potential cost implications for certain users, depending on the specific products and subscriptions in question. Microsoft’s diverse range of offerings across business, enterprise, government, and nonprofit sectors requires a more in-depth examination for accurate comparisons.
For further clarification on pricing changes and their implications, we have reached out to Microsoft and await their response for additional insights.
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