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Microsoft Teams becomes independent: New flexibility for customers
The Microsoft world has changed: Microsoft Teams is no longer automatically part of the Office 365 suite as of October 2023. This is Microsoft's response to the antitrust review initiated by the European Commission in July 2023. The review was prompted by a complaint from competitor Slack. The spin-off of Teams now allows customers to choose more flexibly between their software requirements.
Excel, Word, PowerPoint and Teams - companies that opt for an Office 365 package have access to the various classics from US software manufacturer Microsoft. At least that was the case until October this year. Since then, the popular communication and collaboration platform Teams is no longer part of the Office package in Europe. This is Microsoft's proactive response to a complaint from competitor Slack, which triggered an antitrust investigation. Slack argued that the bundling of Teams with the Office package constituted an abuse of Microsoft's dominant market position. The software giant was illegally tying Teams to Office and thus forcing the installation. Microsoft responded promptly to the EU Commission's investigation and changed the licensing for several Microsoft 365 and Office 365 plans.
Consequences for Micorosoft 365 and Office 365 customers
The removal of Teams from the Office packages has a direct impact on the Microsoft 365 and Office 365 subscription models of business customers in the European Economic Area and Switzerland. Teams licences were gradually removed from the cloud app plans at the beginning of October. New subscriptions no longer include the popular communication application, but cost between one and two euros less depending on the package. Teams is available separately for around 5 euros per month or 60 euros per year.
All-clear for all existing customers: According to Microsoft, the changed packages and prices will only affect new subscribers - existing corporate customers can continue to extend their suites and adjust their licences as part of this. The flexibility gained in this way opens up new options when choosing solutions and the opportunity to save costs. Companies can now decide whether they want to continue using Microsoft Teams as a standalone application or opt for other collaboration software such as Zoom or Slack.
Further adjustments
Under pressure from the EU Commission, the software giant is also planning to improve the interoperability of third-party applications with Microsoft 365 and Office 365. As part of the investigation process, Microsoft has received feedback that more needs to be done to integrate solutions from providers such as Zoom or Slack. Microsoft therefore intends to hire additional support staff and draw more attention to existing APIs and extension options for Microsoft applications.
Microsoft was already under observation by the EU Commission around 20 years ago. In the 1990s and 2000s, the company was most recently targeted by authorities in Europe and the USA. This investigation centred on the bundling of the Internet Explorer browser and the Media Player with the Windows operating system.
The spin-off of Microsoft Teams from MS365 opens up new flexibility and options for customers and interested parties. In particular, those who want a full Teams version now have the freedom to use it without a comprehensive 365 package.
Soft & Cloud offers the option of obtaining Office as an on-prem version at a favourable price. Customers can now save by purchasing Teams separately via a Microsoft subscription and at the same time use the cost-effective used on-premise version of Office to customise a solution to their needs.
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