Microsoft has recently released updated versions of its Microsoft 365 and Office 365 subscription services. These new versions no longer include Teams, the business collaboration chat offering. This decision comes after careful examination by the European Union regulator and in response to complaints from rival Slack.
Experts predict that the decision won’t significantly affect the commercial growth of Office 365. This move comes after Microsoft’s agreement to sell the Office 365 suite without including Microsoft Teams in the EU and Switzerland in the previous year. During that period, the software giant stated that it was implementing the modifications to tackle the concerns brought up by the European Commission.
In a recent blog post, the company emphasized the importance of globally consistent licensing, highlighting how it can provide clarity for customers and streamline decision-making and negotiations. In 2016, the company introduced Teams as a complementary offering to the Office 365 suite. Over 320 million users have joined the platform. 
For enterprise customers outside the EU and Switzerland, Microsoft has announced the launch of a new standalone Teams offering.
While Microsoft has provided the option for businesses to pay for Teams individually, it has also made the service available as part of the highly sought-after Office 365 suite. Some competitors have expressed their dissatisfaction, claiming that the tech giant is using its position unfairly to gain an advantage.
Salesforce, the owner of Slack, has previously criticized Microsoft’s actions, alleging that the Windows-maker engaged in illegal practices. They alleged that Microsoft compelled customers to install Teams through its widely-used productivity suite and concealed the actual cost of the chat and video service.
Microsoft did not directly respond to these concerns in its blog post. However, they did mention that they are providing flexibility to their current customers, giving them the option to keep their current bundled package that includes Teams, Office, and other products. Customers have the option to either renew their current deal, make updates to it, or choose a new offer that aligns more closely with their needs.
Microsoft now offers standalone pricing for Teams at $5.25 per user per month, specifically designed for new customers. Additionally, you can purchase office packages without Teams at prices ranging from $7.75 to $54.75. The price will vary depending on the specific package and features included.
Eltrys viewed a note from Morgan Stanley’s analysts, who predict that Microsoft’s recent decision won’t change the growth trajectory of O365 commercials. They believe that CIOs are more likely to pursue consolidation due to macro pressures and advancements in technology like GenAI, which will lead to greater benefits from comprehensive suites and extensive data sets.
Additionally, the availability of more purchasing options for Teams highlights its attractive pricing, with the new Microsoft Teams Enterprise (standalone) costing only $5.25 per user per month. This is a more affordable option compared to Slack Pro at $7.25/mo. and Slack Business+ at $12.50/mo. The price reduction for the Enterprise Suites without Teams is a mere $2.25, while the standalone option costs $5.25. For new customers, this translates to a rise in pricing. The analysts stated that the cost of using Teams in F1 SKUs is only $0.50 per user per month, while using Teams in Business SKUs costs between $1.25 and $2.25 per user per month.
