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Microsoft 365 Unbundles Teams: What You Need to Know

BINDMYIT Client Advisory

Effective April 1, 2024, Microsoft will separate Microsoft Teams from its Microsoft 365 and Office 365 suites, marking a significant shift in product strategy influenced by regulatory and competitive factors. This change necessitates a strategic review of communication tools within your organization.

Key Pricing Updates and Market Comparison

Microsoft will now offer Microsoft Teams as a standalone product priced at $5.25 per user/month. For comparison:

  • Slack Pro: $7.25 per user/month offers robust collaboration features and extensive integrations.
  • Zoom Pro: $13.33 per user/month is renowned for its superior video conferencing capabilities.

Strategic Implications for Businesses

  1. Flexibility: This change allows businesses to tailor their software subscriptions more precisely, potentially optimizing costs and resource allocation.

  2. Cost Impact: For those needing both Microsoft 365 and Teams, the unbundling could result in higher overall costs, prompting a strategic evaluation of communication needs versus costs.

  3. Regulatory and Competitive Dynamics: Microsoft’s strategy may reshape competitive dynamics in the productivity software market, offering businesses an opportunity to leverage competitive offerings based on specific organizational needs.

Role of BINDMYIT Consultants

BINDMYIT Consultants play a crucial role in navigating these changes:

  • Strategic Evaluation: Our consultants will help assess how your organization currently utilizes Microsoft 365 and Teams to provide tailored recommendations that align with your operational and financial goals.
  • Cost Optimization: We will assist in analyzing potential cost impacts and exploring alternative communication tools to ensure cost-effective solutions.
  • Implementation and Transition Support: Our team will manage the transition to new software configurations, ensuring minimal disruption to your daily operations.

Updated Pricing Structure

Plan Name Previous Price (with Teams) New Price (no Teams) Standalone Teams Cost Total New Cost with Teams
Office 365 E1 $8.00 $10.00 $5.25 $15.25
Office 365 E3 $20.00 $20.00 $5.25 $25.25
Office 365 E5 $35.00 $35.00 $5.25 $40.25
Microsoft 365 E3 $32.00 $32.00 $5.25 $37.25
Microsoft 365 E5 $57.00 $57.00 $5.25 $62.25


The unbundling of Microsoft Teams from Microsoft 365 reflects a significant strategic shift. BINDMYIT is committed to guiding our clients through these changes, ensuring that they can navigate this new landscape effectively to optimize their technology investments.

For detailed analysis and personalized strategic planning, please contact your BINDMYIT account manager.

This advisory ensures that BINDMYIT clients are fully informed and prepared for the implications of Microsoft’s strategic changes, with a focus on optimizing software and communication tool investments to align with organizational goals.