Ever since the pandemic, the demand for productivity apps and video conferencing platforms has been at an all-time high. Some of the most used apps are Zoom, Google Meet, and Teams. However, Microsoft is experiencing pushback from competing platforms as it bundles Teams with Office.
Unbundling Team from Office
Just recently, Microsoft announced that it will be removing Teams from its Microsoft 365 and Office 365 suites in the EU. This was prompted as the company is facing an antitrust investigation, and the change might prevent the matter from getting worse.
With that done, Zoom CEO Eric Yuan thinks that the same should be done in the US market. Yuan suggested that the Federal Trade Commission should look into making the same thing happen, as reported by The Verge.
During the Goldman Sachs Communacopia + Technology Conference, Yuan stated: "You should ask this question to the FTC as well," and if they do, then Teams could be bought as a standalone, just as it will be in the EU by October.
Users will also be able to buy the Microsoft suite bundles without teams if they choose to use other video conferencing apps, which means that the cost would be reduced. Soon enough Teams will cost €5 per month or €60 per year.
It's likely another one of Microsoft's attempts to get people to use their products. If Teams was part of the bundle, it means that they are already paying for it anyway. For the sake of cost-cutting, users will have to opt for that instead of paying for another app.
Microsoft is already successful on its own. It has approximately 300 million daily active users, but no one can tell for sure how many of those are forced to use the productivity apps because of the bundle.
What Are the Changes?
Microsoft believes that "business customers in Europe and around the world expect a modern work solution to include modern communication and collaboration capabilities," which is why they have included the, in business suites since 2007.
The tech giant has also addressed that they have a responsibility as a "major technology provider" to "support a healthy competitive environment." With that said, the EU and Switzerland will have the choice to purchase the standalone app or the bundle.
Other than providing an option to purchase a business suite without Teams at a lesser price, Microsoft also intends to make interoperability easier between competitor apps and Microsoft 365 and Office 365 suites.
This allows users to operate with companies like Zoom and Salesforce, all while creating tailored and integrated experiences across Exchange, Outlook, and even Teams. Microsoft also plans to create new mechanisms to enable third-party solutions.
Other than Teams, Microsoft Office productivity apps are preferred by users, and so rivals have requested for the software giant to develop a new method of hosting Office web applications within rival apps.
These efforts may just be a way to ease the matter with the EU, but it could also boost demand since users won't need to pick one or the other. With the Zoom CEO's suggestion the FTC might actually look into making it happen for the US.
