Microsoft unbundles Teams and Office 365 in Europe amidst pressure from Slack
Organizations will soon be able to subscribe to Microsoft 365 without Teams, giving more options and more affordable pricing.
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What you need to know
Microsoft Teams and Microsoft Office will soon be unbundled in several countries across Europe.Microsoft announced the decisiontoday that will affect organizations in the European Economic Area and Switzerland. Starting on October 1, 2023, organizations in affected regions will be able to purchase Microsoft 365 subscriptions without Teams.
The main difference going forward is that organizations can now choose to have Office without Teams at a lower price than the currently available bundle. Microsoft 365 subscriptions without Teams will be available for €24 per year, which is €2 less per month.
The price of Office with Teams remains the same. Existing customers will be given the option to continue with the current plan or switch to a plan without Teams.
The fact that Office on its own is cheaper is the key. Companies that wish to use a different communication software, such as Slack, can now take the cost per user that would have gone toward Teams and spend it wherever they’d like. Those same organizations could also, of course, not use any communication software at all.
There will also be an option to purchase standalone Teams subscriptions, giving organizations a more affordable way to access the communication software if they do not need the rest of the Microsoft 365 suite.
“Today we are announcing proactive changes that we hope will start to address these concerns in a meaningful way, even while the European Commission’s investigation continues and we cooperate with it. These changes will impact our Microsoft 365 and Office 365 suites for business customers in the European Economic Area and Switzerland,” said Microsoft Vice President of European Government Affairs Nanna-Louise Linde.
Microsoft highlighted its plans over the coming months in relation to the unbundling:
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In addition to unbundling Teams from Office, Microsoft will work to improve interoperability between Office and competing apps. Specifically, third-party solutions will be able to host Office web apps.
The decision to unbundle Teams and Office and make other changes is in response to the ongoing investigation by the European Commission. That investigation is, at least in part, in response tocomplaints by Slack.
While unbundling Teams from Office may be enough to appease the European Commission, Microsoft explained that it understands more steps may need to be taken.
“We do this not with the sense that this will necessarily resolve all concerns, whether from the Commission or our competitors, but we believe this is a constructive step that can start to lead to immediate and meaningful changes in the market,” said Linde.
Sean Endicott is a tech journalist at Windows Central, specializing in Windows, Microsoft software, AI, and PCs. He’s covered major launches, from Windows 10 and 11 to the rise of AI tools like ChatGPT. Sean’s journey began with the Lumia 740, leading to strong ties with app developers. Outside writing, he coaches American football, utilizing Microsoft services to manage his team. He studied broadcast journalism at Nottingham Trent University and is active on X @SeanEndicott_ and Threads @sean_endicott_.
