Microsoft has announced that it will unbundle Teams from Office 365 for new business customers worldwide, expanding on a strategy introduced in the European Economic Area and Switzerland last year. The company will offer Teams and Office 365 separately to business subscribers, meaning that Office 365 suites with Teams will no longer be sold to new customers. However, existing customers who wish to continue using the bundled products will still have that option available to them upon renewal.
This decision from Microsoft comes on the heels of an investigation launched by the European Commission into the company’s bundling of communication and collaboration software into its business suites, following a complaint by Slack in 2020. By unbundling these programs, Microsoft is aiming to provide more clarity for customers and offer multinational companies greater flexibility in their purchasing decisions across different regions. Critics, however, argue that this move is too little, too late, as it falls short of addressing issues related to interoperability and licensing restrictions that impact customer choice.
Ryan Triplette, the executive director of the Coalition for Fair Software Licensing, is among those who have criticized Microsoft’s decision to unbundle Teams and Office 365. He believes that while this move may appear to promote fair competition on the surface, it still leaves key restrictions in place that hinder true customer choice. The group has called on the FTC to investigate Microsoft’s licensing practices further to ensure that customers have more options and freedom when it comes to selecting and using software products.
Unbundling Teams from Office 365 will give new business customers the ability to choose which programs they want to purchase, rather than being forced to buy them as a package. This move is expected to provide more transparency and flexibility for customers, particularly those operating in multiple regions. Although Microsoft will continue to offer the bundled products to existing customers who choose to renew their subscriptions, the company’s decision to unbundle the programs is a significant step towards addressing concerns raised by regulators and critics.
With the EU investigation into Microsoft’s bundling practices still ongoing, the decision to unbundle Teams from Office 365 could be seen as a proactive step to address potential antitrust concerns. By providing customers with the option to purchase Teams and Office 365 separately, Microsoft is working towards creating a more competitive and open market for communication and collaboration tools. While critics may argue that this move does not go far enough in promoting fair competition, it represents a positive shift towards giving customers more control over their software purchasing decisions.
Overall, Microsoft’s decision to unbundle Teams from Office 365 for new business customers is a significant development that could have far-reaching implications for the software industry. By offering these programs separately, the company is responding to feedback from regulators and critics while also giving customers more choice and flexibility in their purchasing decisions. As the investigation by the European Commission continues and the debate over fair competition in the software industry rages on, Microsoft’s move to unbundle Teams and Office 365 is a step in the right direction towards promoting transparency and customer empowerment.
