- Microsoft introduces Microsoft 365 and Office 365 subscription services without Teams.
- Existing customers can maintain bundled packages or choose new offers.
- Analysts believe the decision is unlikely to impact Office 365’s growth trajectory.
Microsoft has introduced new versions of its Microsoft 365 and Office 365 subscription services that exclude its business collaboration chat offering, Teams.
This decision comes after years of criticism from the European Union regulator and complaints from rival Slack, which accused Microsoft of leveraging its market dominance to gain an unfair competitive edge.
Flexibility for existing and new customers
Existing customers have the option to maintain their current bundled package that includes Teams, Office, and other products, or they can choose to update or select a new offer that better suits their needs.
For new customers, Microsoft has introduced standalone pricing for Teams at $5.25 per user per month. At the same time, Office packages without Teams will be available at prices ranging from $7.75 to $54.75, depending on the specific package and features included.
Unlikely to impact Office 365 growth
Despite the unbundling, Morgan Stanley analysts estimate that Microsoft’s decision is unlikely to change the Office 365 commercial growth trajectory.
They argue that consolidation, rather than less, seems to be the direction for CIOs due to macro pressures and technological progress like GenAI, which drives stronger gains for broader suites and deeper data sets.
The standalone pricing for Teams also illustrates its compelling value compared to competitors like Slack Pro and Slack Business+.
