Microsoft has made a significant move to unbundle the subscriptions for its flagship products, Teams and Office. The decision comes after several years of constant criticism. The tech giant is best known for its office productivity tools, like Word, Excel, PowerPoint, and others. Teams is one of the top video-conferencing platforms since its launch in 2017. Microsoft has introduced a subscription plan combining the services of both Office and Teams to allow users to get maximum advantages under a single membership plan. However, the model has faced a lot of criticism from users as well as from Slack and the European Union regulator.
Scrutiny on Microsoft
Microsoft has received immense scrutiny for its bundling decision. The combination of Microsoft 365 and Office 365 has delivered incredible advantages to the users. Consequently, they can easily combine essential productivity tools, like Word, PowerPoint, and Excel while utilizing the potential of Teams to stay in touch with others. Nevertheless, this strategy has caused difficulties for its counterparts in surviving in the highly competitive world. Slack is counted among the major critics and has termed this move as illegal. In addition, the competitor has alleged that Microsoft did not show the true cost of the video conferencing platform.
The Unbundling Decision
Microsoft has made the unbundling decision for several reasons and has been extensively criticized. Additionally, growing antitrust concerns have made it compulsory for the tech giant to shift its strategy. The unbundling will help the company navigate these challenges quite effectively. Above all, the European Commission has played its role in pressuring the company to make the unbundling decision. It will enable multinational organizations to find flexibility in their purchase decisions.
Slack has criticized Microsoft for offering Teams as a combined subscription with Office 365, which is pretty much positive feedback. The decision has caused a lot of problems for competitors as it is giving Microsoft an additional advantage to market its video-conferencing tool without showcasing its real capabilities.Â
Implications
The implication of the unbundling decision will deliver positive aspects to Microsoft and save the company from further criticism. Customers can now easily choose the Office or Teams as per their demand and without any restriction. Moreover, the availability of Teams as an independent tool will allow other companies like Slack to enter the competition. One positive aspect of this intensified competition is that it will improve the functionalities of these tools. Besides, organizations can adjust their workflows and collaboration strategies on Teams without requiring a subscription to Office 365 which will save financial assets as well.
Future Prospects
Microsoft’s decision to unbundle Office and Teams subscriptions is a significant move that will benefit the company and enhance the functionalities of its products. As the tech landscape is evolving, the move represents the organization’s commitment to fair competition and customer choice.
