Microsoft splits up the Teams and Office apps worldwide, following EU split

Microsoft splits up the Teams and Office apps worldwide, following EU split post thumbnail image
Teams is being decoupled from the other Office apps worldwide, six months after Microsoft did the same thing for the EU.
Enlarge / Groups is being decoupled from the opposite Workplace apps worldwide, six months after Microsoft did the identical factor for the EU.
Microsoft/Andrew Cunningham

Months after unbundling the apps within the European Union, Microsoft is taking the Workplace and Groups breakup worldwide. Reuters reports that Microsoft will start promoting Groups and the opposite Microsoft 365 apps to new industrial clients as separate merchandise with separate worth tags starting right now.

“To make sure readability for our clients, we’re extending the steps we took final 12 months to unbundle Groups from M365 and O365 within the European Financial Space and Switzerland to clients globally,” a Microsoft spokesperson instructed Ars. “Doing so additionally addresses suggestions from the European Fee by offering multinational firms extra flexibility after they need to standardize their buying throughout geographies.”

The unbundling is a win for different workforce communication apps like Slack and videoconferencing apps like Zoom, each of which predate Groups however have not had the advantages of the Workplace apps’ large established consumer base.

The separation follows an EU regulatory investigation that started in July of 2023, nearly precisely three years after Slack initially filed a complaint alleging that Microsoft was “abusing its market dominance to extinguish competitors in breach of European Union competitors legislation.”

In August of 2023, Microsoft introduced that it could be unbundling the apps within the EU and Switzerland in October. Bloomberg reported in September that Zoom had met with EU and US Federal Commerce Fee regulators about Microsoft, additional ratcheting up regulatory stress on Microsoft.

In October, Microsoft European Authorities Affairs VP Nanna-Louise Linde described the unbundling and different strikes as “proactive adjustments that we hope will begin to tackle these considerations in a significant approach,” although the EU investigation is ongoing, and the corporate might but be fined. Linde additionally wrote that Microsoft would permit third-party apps like Zoom and Slack to combine extra deeply with the Workplace apps and that it could “allow third-party options to host Workplace internet purposes.”

Microsoft has put up a weblog put up detailing its new pricing construction here—for now, the adjustments solely have an effect on the Microsoft 365 plans for the Enterprise, Enterprise, and Frontline variations of Microsoft 365. Client, Educational, US Authorities, and Nonprofit editions of Microsoft 365 aren’t altering right now and can nonetheless bundle Groups as they did earlier than.

Present Workplace/Microsoft 365 Enterprise clients who need to preserve utilizing the Workplace apps and Groups collectively can proceed to subscribe to each at their present costs. New subscribers to the Enterprise variations of Microsoft 365/Workplace 365 pays $5.25 per consumer per 30 days for Groups, whether or not they’re shopping for Groups as standalone software program or including it on prime of a Groups-free Workplace/Microsoft 365 subscription.

For the Enterprise and Frontline Microsoft 365 variations, you possibly can both purchase the model with Groups included for a similar worth as earlier than, or select a brand new Groups-less possibility that can prevent a few {dollars} per consumer per 30 days. For instance, the Groups-less model of Microsoft 365 Enterprise Customary prices $10.25 per consumer per 30 days, in comparison with $12.50 for the model that features Groups.

Up to date April 1, 2024, at 4:12 pm so as to add extra particulars about pricing and a hyperlink to Microsoft’s official weblog put up concerning the announcement; additionally added a press release from a Microsoft spokesperson.

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