Microsoft gets inspired by the EU model and separates Teams from Office globally

In a shift to its licensing structure, Microsoft will now offer its communication and collaboration platform, Microsoft Teams, as a standalone product on a global basis. This follows a similar change implemented in the European Economic Area and Switzerland last year. (EU weren’t a fan)

Previously, Teams was often included with various Microsoft 365 subscriptions. Businesses will now have flexibility in choosing their software solutions. They can opt to maintain their existing subscriptions, renew or update them, or transition to the new offerings.

The new licensing options now include the ability to purchase Microsoft 365 subscriptions that exclude Teams, as well as the option to acquire a standalone version of Teams.

This change is expected to be beneficial for multinational corporations seeking to standardize their software purchases across various regions.

To ensure clarity for our customers, we are extending the steps we took last year to unbundle Teams from M365 and O365 in the European Economic Area and Switzerland to customers globally.

Doing so also addresses feedback from the European Commission by providing multinational companies more flexibility when they want to standardise their purchasing across geographies.

Microsoft’s spokesperson said, as reported by Windows Report.

Pricing details for the new structure have been announced, with Office subscriptions without Teams ranging from $7.75 to $54.75, depending on the specific product and region. The standalone Teams offering will be priced at $5.25, with possible changes based on location and currency.

The move to unbundle Teams is linked to an antitrust investigation initiated by the European Commission in 2020. The investigation centered on Microsoft’s practice of bundling Teams with Office, which some competitors, such as Slack, argued created an unfair advantage.

While an official public announcement from Microsoft is still pending, the new licensing structure is expected to take effect on April 1, 2024