Microsoft has recently announced a significant change to their Microsoft 365 plans – Teams will be unbundled from this package and offered as a separate product. For now, this change only affects countries inside of the European Union, but there are plans to bring it to the rest of the world. Let’s delve into the details of this Microsoft Teams update and what it means for users of the Microsoft Teams suite.
Why the change?
The decision to unbundle Microsoft Teams from the Microsoft 365 and Office 365 commercial plans stems from discussions with the European Commission.
This is the executive branch of the European Union (EU), responsible for proposing and enforcing legislation, implementing policies, and upholding EU treaties. One of its key functions is to ensure fair competition within the EU’s single market.
In recent years, the Commission has been particularly focused on the tech sector, investigating potential anti-competitive practices by large technology companies. Their goal is to maintain a level playing field and protect consumer interests in the rapidly evolving digital marketplace.
In this case, the Commission opened an investigation into Microsoft’s practice of bundling Teams with its Microsoft 365 and Office 365 suites. This investigation was prompted by concerns raised by competitors, about potential anti-competitive behaviour.
As a result of extensive discussions with the Commission, Microsoft has decided to make changes for all users to address two primary areas:
1. Customer choice and pricing flexibility
The European Commission raised concerns about customer options and pricing. In response, Microsoft has made the following changes:
- Separate pricing: customers can now choose a business suite without Teams at a lower price point than packages including Teams.
- Standalone Teams: Microsoft is offering Teams as a separate, stand-alone product called Microsoft Teams Enterprise.
- Global implementation: while initially focused on the European market, Microsoft has extended this change worldwide to provide consistency for multinational companies.
This unbundling allows businesses to have more control over their software expenditure and choose the tools that best fit their specific needs. It’s particularly beneficial for businesses that may prefer alternative collaboration platforms or have unique requirements that don’t necessitate the full Teams suite.
2. Improved interoperability
The Commission also sought improved interoperability between Microsoft’s solutions and competing communication and collaboration tools. Microsoft’s response includes:
- Enhanced resources: Microsoft will create new support resources to better organise and highlight existing APIs and extensibility options in Microsoft 365 and Office 365 apps and services that connect with Teams.
- Developer support: additional support will be provided to address questions from customers and independent software vendors (ISVs).
- Data portability: Microsoft will offer guidance explaining how data can be removed from Teams and used in another solution, facilitating easier transitions between platforms if desired.
These interoperability improvements aim to create a more open ecosystem where different collaboration tools can work alongside Microsoft’s offerings. This could lead to more integrated workflows and greater flexibility for businesses using multiple software solutions.
While Microsoft maintains that integrated solutions offer significant value, these changes represent a strategic shift to accommodate diverse market needs and regulatory environments. The company continues to evolve its offerings to balance competitive concerns with the delivery of comprehensive, modern work solutions.
What does this mean for Microsoft Teams customers?
New pricing structure
The current pricing model for commercial Microsoft 365 and Office 365 plans, which includes Teams, will no longer be available for purchase once the change is implemented. Instead, Teams will be sold as a standalone product called Microsoft Teams Enterprise. However, existing customers will be able to maintain their current plans with Teams included if they choose.
Impact on IT professionals
The impact on IT professionals may vary depending on their organisation’s decisions:
- Maintaining current plans: most organisations are likely to keep their existing plans, which include Microsoft Teams. This scenario would result in minimal changes to IT administration.
- Opting for unbundled solutions: some organisations might choose to remove Microsoft Teams for certain user groups to reduce costs or to adopt alternative collaboration tools.
- Potential for enhanced interoperability: in the future, we may see improved interoperability between Microsoft Office and third-party applications, although specifics have not been announced for markets outside the European economic area and Switzerland.
Considerations for decision-making
When evaluating whether to keep Microsoft Teams or explore alternatives, consider:
- The popularity and widespread use of Microsoft Teams within your business.
- Existing institutional knowledge and familiarity with the platform.
- Potential cost savings from unbundling.
- The features and capabilities of alternative collaboration tools.
Talk to Rubicon 8 for support
As Microsoft partners, Rubicon 8 is well-positioned to provide guidance on these changes. While there is no release date set as of yet, the unbundling will be on its way. Whether you’re considering maintaining your current Microsoft 365 plan or exploring new options without Microsoft Teams, our experts can help you navigate this transition.
We can assist with:
- Analysing the impact of these changes on your organisation.
- Evaluating the cost implications of unbundled solutions.
- Exploring alternative collaboration tools if needed.
- Ensuring smooth integration and interoperability within your existing IT infrastructure.
Stay informed about this Microsoft Teams price change and make the best decision for your organisation’s needs. Contact Rubicon 8 today to discuss how these changes might affect your business and to explore your options moving forward.
