Microsoft to Sell Teams Separately from Office Bundle Globally

Microsoft is reportedly planning to remove Teams from its Office bundle and begin selling the collaboration platform separately around the world to address antitrust concerns. The move comes after the tech giant separated the products in the European Union (EU) and Switzerland last year in response to antitrust investigations.

Background

In 2020, Salesforce’s Slack filed a complaint that led to antitrust investigations against Microsoft over its inclusion of Teams in the Office bundle. To address these concerns, Microsoft decided to unbundle Teams from Office in the EU and Switzerland. Now, the company is extending this change globally to provide clarity for customers.

Impact on Customers

Businesses will now have the option to continue using their existing package or switch to a new configuration without Teams. The price of Office without Teams for new commercial customers could range from $7.75 to $54.75, while Teams on its own will cost $5.25. These changes are effective immediately, allowing companies to make adjustments to their subscriptions starting Monday.

Market Response

Following the announcement, Microsoft shares were up 1.2% at $425.68 as of 10 a.m. ET on Monday. The stock has seen significant gains, with a nearly 15% increase year-to-date and over 48% growth in the last 12 months.

Future Outlook

By selling Teams separately from the Office bundle, Microsoft aims to address antitrust concerns and provide more flexibility to customers. This move reflects the company’s commitment to compliance with regulatory requirements while ensuring a positive user experience.

Conclusion

Microsoft’s decision to sell Teams separately from the Office bundle globally marks a significant shift in its product strategy. By unbundling these offerings, the tech giant is responding to regulatory pressures and adapting to changing market dynamics. Customers now have the option to choose between different subscription plans based on their specific needs, further enhancing Microsoft’s position in the collaboration software market.

For more information, you can read the original article on Investopedia.