Microsoft Unbundles Teams from Office Suites in EU from October 2023 - Pricing Details Inside
Starting October 2023, Microsoft will separate Teams from its Office bundles in the EU to comply with regulatory demands, offering new pricing options for businesses.
In a strategic move to comply with the European Commission's anti-competition investigation, Microsoft (MSFT) will begin unbundling its Teams application from Office 365 and Microsoft 365 suites in European markets starting October 1, 2023.
Key Highlights
- Microsoft will offer Office suites without Teams at a reduced price of €2 (approx. $2.17) less per month.
- Teams will be available as a standalone subscription for €5 (around $5.42) monthly.
- Enhanced interoperability with competing platforms like Zoom and Slack will be introduced, enabling seamless integration with Exchange, Outlook, and Teams.
- These changes primarily target enterprise customers across the EU, Iceland, Liechtenstein, Norway, and Switzerland.
The Microsoft 365 and Office 365 bundles, which traditionally include Word, Excel, PowerPoint, and Teams, will now be offered without Teams at a lower subscription cost. Customers can opt to add Teams separately if desired. This initiative follows a complaint by Salesforce’s Slack, which accused Microsoft of leveraging its market dominance by bundling Teams with other Office products.
Existing subscribers in the affected regions can choose to renew their current plans with Teams or switch to the new, Teams-free offerings. Small businesses will retain the option to subscribe to suites including Teams.
Microsoft's Vice President of European Government Affairs, Nanna-Louise Linde, emphasized that unbundling Teams is a significant first step toward addressing regulatory concerns, though further actions may be necessary.
The European Commission has yet to respond officially to Microsoft's plan and may proceed with formal charges if additional compliance measures are not implemented by autumn 2023.
For more updates on this evolving story, stay tuned to ZAMONA.
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