Microsoft is unbundling Teams from Office in Europe to address regulator concern
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Then the pandemic happened and they allowed (or couldn't stop) Zoom from becoming synonymous with video calls during that period. Skype could (should?) have been the verb that everyone used.
And despite all this Teams (which isn't even particularly good) is still looking like it'll crush the competition in most enterprise environments.
This isn't surprising at all, Skype for Business was a joke - the verb used at the time was Webex. What is shocking is how horribly Cisco bungled the entire thing. They went from market dominance (61% market share) to almost an afterthought in a matter of a year.
https://www.cisco.com/c/dam/en/us/solutions/collateral/colla...
Webex was just as bad and unreliable as Skype for Business, the only reason why that shit even existed was that it integrated nicely with your existing Cisco telephony and conference room hardware. First, Zoom came in with an extremely easy to use solution right when Covid hit, and Teams sealed the fate of both by being cheap to effectively free and being even lower in barrier to entry - including the effort for compliance stuff like SSO and auditing which eventually grew more important for companies as the "it's a pandemic" excuse ceased to be viable.
Personally, I do not think that there is a chance that MS Teams can be displaced any more in the enterprise space, simply because of the compliance overhead that everyone else has to do while it's considered "done" for companies that already use Office 365. And now that MS is offering VoIP integration, companies are also ditching their expensive and, let's be honest given their reputation for security issues, insecure Cisco stuff.
Had I been born there instead of here, I often wonder how things would have turned out as I got starved of exposure to computers, modems, programming languages, Internet, cell service, etc... I mean, I know there are communities of people there who are into all of those things, but it certainly seems to be massively de-emphasized
Did I mention Helmut Kohl made some of the worst decisions possible in this area? It cannot be underemphasized how badly he mis-stepped on this stuff.
https://www.settle-in-berlin.com/why-is-internet-so-bad-in-g...
It's hilarious that Angela Merkel said "the Internet is new territory" in 2013, nearly 20 years after it first burst onto the dialup scene.
IIRC Cisco owned most of the underlying infrastructure and just couldnt scale fast enough.
Teams instantly dominated the work world in the UK at least as soon as the pandemic hit.
Pretty clear why Teams wins anyway... Assuming you want SSO in your corporation.
Zoom price: £160 per year.
Office 365 business standard: £123 including Office, Powerpoint, Excel, Exchange, Sharepoint...
And after this change, you also have the option to just buy teams for £60 - £100 less than the Zoom price.
It's less than half the price of Slack with way more features. We even get Loop knowledge management which is shaping up to be pretty great actually.
If they can squeeze ChatGPT/generative-AI functionality in there for cheap that's a slam dunk.
Zoom supports SSO. I use it every day.
Appreciate this isn’t the way I worded it, and the sentence should have ended with a “:” rather than a “.”
Anybody starting a new enterprise project in a Microsoft shop will look at building it around these technologies first. We are talking about compute, storage, front-end, back-end, integration, etc. all hosted on this stack, with Teams providing the entry point for the experience.
Skype, Zoom, Slack, etc. will never compete with this vision.
Obviously the consumer product we were all once familiar with wouldn't suffice in terms of features, but I never understood why they didn't stick with the Skype brand.
At the time of the pandemics, they decided to push the Teams brand instead of Skype because people in business all associated the brand "Skype" with a very low quality product.
From what I remember, the two Skypes were never fully interoperable.
I guess they wanted to start fresh rather than clean up that mess and didn't want a third incompatible Skype.
Both Google Meet and Zoom have both consumer and business users. Skype could have done the same if Microsoft didn't let it rot.
I'm not even sure when or why people (including myself) stopped using Skype... I used it constantly a decade or so a go both for business and personal. It's like Microsoft just forgot about it while other competitors entered the market and ate away at their market share.
A strong Skype brand and decent Skype for business product would have made so much sense. Regardless of quality, wherever I've worked Teams always felt like a soulless forced corporate product. The brand is almost universally hated, and for what? They had a great brand with Skype it was just neglected.
Sadly it was depreciated for Skype for Business that had fewer functionalities and was just plain worse.
It is not like they just invented Teams from a cleanroom. They used the human and code assets from Skype to make Teams.
I don't know why you would make up a 'fact'.
Also in this context it makes even less sense as Microsoft bought Skype before Teams existed. I think you can't you steal something you own.
They shared a name for a handful of years. That's it.
Teams does not share components with Skype consumer; at most they both used SILK, but Teams moved to Satin in 2021. It does use [backend] components from SfB as it is the evolution of that service.
Notably Brad Smith was their chief counsel back then and he still is now - he's gotten a promotion to President in fact.
I mean they won right?
The competitive advantage the bundling has given them is enormous.
And while un-bundling it now will stop "additional benefits" it won't in any form remove the benefits they already got.
E.g. companies which are on a bundled plan and use both are now used to it and their cross integrations (which won't go away) so as long as it's price wise competitive with other solutions they likely will keep it and now pay for both.
As long as anit-monpoly low doesn't 1) penalizes based on the long term benefits gained 2) shifts more to anti-massiv-power-abuse laws in their phrasing/formulation/public discourse we will just see stuff like that happening again and again. We sadly life in a world where huge companies braking the law is the norm as long as it's expected to yield them noticeable more money then the fall out through penalties and publicity. And that isn't just limited to vague laws like monopoly power abuse, e.g. Ubers operation is quite not so fully legal in a lot of countries.
Not saying that market power abuse is in any form right.
Actually I would argue it's wrong no matter how technically decent the product is.
Sony didn't help as they are notoriously buying exclusivity with every single game they could (which has worked in their favor)
All of that stuff back then had basically no consequences, which is probably why MS continues to increase their anti-competitive behavior. They will continue to do so until there are consequences, obviously.
Asked another way, why is Apple allowed to bundle Music with the iPhone, but Microsoft is not allowed to bundle Teams with Office?
Bundling is basically their modus operandi.
Microsoft, at least add a limit to how many normal chatrooms a Teams team can have. This forum for channels approach is annoying, those are useful for like automated messages.
I believe this may be the first time I've heard anyone say that.
It smoothly integrates back with Outlook, the experience is slightly different, but we have all our meetings over Teams, and the call quality is always great. If you ever have network issues, it suggests calling into the meeting on a land line, which is a small but really nice thing, even sometimes when watching a screenshare it offers listening from a land line whilst watching from your computer in order to cut down on data.
Teams has an insane amount of potential for complete greatness, but given how Windows itself does as well and it gets overshadowed by marketing decisions that anger power users, I'm not holding my breath on Teams achieving what it could. The infrastructures all there, and it is insanely extensible.
I’d rather teams did 2 (albeit complex) things; Direct & Channel chats (with one or more people), and video calls with one or many people. If I want to use Office, I’ll use the right app.
It feels like Teams is trying to do too many things, and it’s bad at all of them.
I sync my files from Teams using OneDrive, and then they open in the desktop apps...and work like a regular folder in Windows
However, I've only been using it for six months. So maybe it used to be worse and that's where all the hate comes from?
Also, most of the clunkiness seems to hit me the worst as the admin and sole tech person at our company. The rest of that users seem to be doing just fine.
I might like to use Slack and Zoom, however, the prices they charge are completely off.
Microsoft 365 Business Premium costs 20 euros per month per user.
Google Workspace Business also costs 20 euros per month per user.
There is no way to justify paying 14 for slack and 15 for zoom.
They are not that much better than Meet/Chat/Teams to justify the cost.
If Zoom/Slack was 5 each, I might consider it. At 15, no way.
This move is only protecting Slack and Zoom from having to compete in value.
What if slack cost 14 due to all the features beyond chatting, like especially video calls.
Maybe this change now gives them a motivation to provide a "text only" version of Slack for 5 or 7, because if I would guess 50%+ of their operation and development cost come from this additional features?
> is not forced to unbundle them
because monopoly law sadly sadly only applies if you are somewhat winning, but not if you are somewhat irrelevant to a point people forget to even evaluate you when making a choice (in the EU Microsoft 365 is clearly winning huge and e.g. Zoom and Google Workplace are _much_ less relevant/successful compared to the US AFIK).
According to statista, google suite has 50% vs 45.5% of microsoft 365.
https://www.statista.com/statistics/983299/worldwide-market-...
Teams is so dense, it's almost designed to avoid those general chat situations.
Not to mention if you have any amount of Linux users, they're basically second class citizens.
The current crop of students are all using Discord to collaborate during lab work. Wait 2-3 years until they are team leaders at work and there will be Discords everywhere. I can promise you every Fortune 500 already is using Discord in production, just as they are using generative AI.
From my perspective stagnant would be better than taking away useful features.
Slack, by design, makes it painful to engage in more than one conversation at a time. It's so annoying to maintain a "save for later" list of things you need to come back to, or mark things as unread.
You can do this with slack by using the web client, but that has its own annoyances with not being a native application.
Except for that, they could stagnate. For example, what the huddles were for? Did I miss any new functionality that they added to the old calls?
Its an attempt at making something an open office / standing room type situation so people can wander in and out of huddles to check in with folks.
In practice, I don't see it used much. Everyone wants to setup a Zoom call.
All the customers that are not paying for Slack are using Meet. One attempted to use Teams once but it's too complicated. Zoom for work calls? It surely happened but I can't remember when. Skype, I had a customer using it and actually screen sharing in Skype is good: it wastes as much of the screen in useless borders and toolbars as all its competitors but at least it's possible to zoom and get a pixel perfect view of what is shared.
[1] mostly because it's slow, their UX is clunky as hell, and it still doesn't support audio/video calls on Firefox despite WebRTC being supported there since 2015.
For better or for worse, Slack has a huge UI overhaul right around the corner: https://slack.com/blog/productivity/a-redesigned-slack-built...
just not at looking appealing to companies
I mean they have:
- good chat
- new okayish forum feature
- pretty good video calls (better then Teams AFIK)
- many of the same misc features
- good probably better moderation features then slack
- a nice balance between convenience and security wrt. their login
- ways to ad good code highlighting for a lot of programming languages
- somewhat okayish (AFIK better then modern slack) accessibility features
it's just that all of this features are tweaked with small to mid sized hobby communities in mind instead of companies
Zoom is a better value if you need features beyond the base teams. You pay a simple fee and get the whole shebang. With Teams, you may need different SKUs, including Azure AD, etc to get the full feature set. It’s a funnel to E5.
sadly this won't stop the considerations, as we do use Teams for video calls and idk. why but using slack for the video calls seems to not really be considered
through tbh. I find both somewhat subpar/dissatisfying.
The correct course of action is to have an API that allows other apps to integrate and provide this feature in Office.
To give an example, Google, when adding storage APIs to Android KitKat worked closely with competitors to Google Drive to ensure that the storage API worked with third party providers. Google are not perfect, but that is a fine example of the right general idea.
And yes, O365 adding chat was a big blow for Slack. But I think Teams' displacing Slack has more to do with the fact that Slack doesn't offer value equivalent to it's fairly high price. There are lots of features in O365 that never disrupted "premium priced" competitors - BaseCamp exists despite O365 ToDo, project management tools exist despite O365 Planner, etc.
You claim that Slack doesn’t offer enough value to justify its price, then why did people pay for before? Teams is cheaper, sure. But is that because it’s actually cheaper to operate, or is it because Office is a giant cash cow, and Microsoft are subsidising Teams pricing with Office profits?
Teams is quite clearly a separate product to Word or Excel. Both Teams and Office represent entirely distinct products that are fully featured and can be used completely independently of each other without any real loss of functionality. There’s no reason why they should be bundled, Office was perfectly profitable without Teams for many decades. It not even vaguely the same as Excel adding Python support, Facebook adding chat, or Reddit adding image uploads.
Phone lines have always been part of a functional office. Not sure how you can argue that communications (voice, video, screen share) is not part of a modern, WFH enabled office suite.
And what does comms and phone lines have to do with Offices market dominance? Are you suggesting that Office should come with a mandatory bundled phone line as well?
Smartphones include features that have relegated to niche markets the consumer camera market, consumer dictation equipment, mp3 players, navigation devices, etc.
With regards to Google’s productivity suite vs Office. Googles stuff is very impressive, but honestly not even in the same league as Office. Googles stuff is pretty useless for anything beyond pretty basic editing, and I say that as some that used Googles offerings extensively in a professional environment for many years.
The product performs very poorly because its quality is not a major driver of its sales - many if not most customers select it for the reasons I just mentioned above.
This causes Microsoft's competitors to not be considered at all, losing customers (and here you have the anticompetitive aspect), while Teams lags and underperforms because quality is hardly a metric.
Teams is a re-imagining of UI atop SharePoint and SfB/Lync APIs or functionality we all loathed, and does a not terrible job of it.
When you realize that "screen sharing" is now "app sharing" instead, and every user can collaborate, a light bulb goes off.
When you realize you can offer Teams with web-based office suite collab at $3/seat to remote collaborators, fireworks go off.
When you realize all of this is fully compliant for regulated industries, there are no other choices, because the incumbents didn't bother becoming compliant for actually collaborating.
Most tools in this space are siloed chat, or presentation viewer, and god bless for permissioned file spaces.
As far as we've been able to find, both at the 2nd largest bank in free world and a startup of just dozens, the M365 E5 suite with Teams backed by SharePoint makes this all work together for role based group access to real time collaboration at scale while remaining seamlessly compliant.
That's the OP's point: what you call "giving away for free for anyone who has the office suite", I call "adding another feature to the office suite". Particularly for features which everyone understands are now just necessary in the space, it's a little weird to say "you can't add new features to your software, that would be anticompetitive".
Bundling <new function> with <extremely dominant product> is extremely problematic for obvious legal and moral reasons.
You're suggesting it's a problem for a dominant product to release new functionality? Like once something gets big enough it can't improve anymore because that would be anticompetitive?
I don't see the obvious legal and moral reasons.
I don't see anyone prosecuting Google for bundling Chrome with Android and pushing Chrome in Search, or prosecuting Apple for bundling Safari and iCloud with the iPhone, or prosecuting Amazon for bundling streaming video with Prime, or prosecuting Microsoft for pushing Edge with Windows.
The EU did this: https://ec.europa.eu/commission/presscorner/detail/it/MEMO_1...
> pushing Chrome in Search,
I really wish this had happened, but maybe no-one made a complaint?
> prosecuting Microsoft for pushing Edge with Windows.
This will 100% happen, but the wheels move slowly.
They’re hardly “just adding features” to existing software. It not like teams is just a “feature” in Word or Excel, it’s entirely separate. Do you think that Office and Teams should be bundled with Windows as well? So your only option is to pay a subscription for windows, and get Office and Teams “for free”?
It's a judgment call to be sure. Google has integrated Meet with their office tools, but nobody (AFAIK) has shouted about it being anti-competitive.
Does Microsoft block or make it more difficult to add Zoom info to a meeting in Outlook? It's pretty easy with an add-on to add that info via GMail. If they're adding barriers to integration, that would be strong reason to consider the bundling anti-competitive.
I briefly used Office/Teams when I was at Intel. My recollection was that Teams was really tightly integrated as a Slack/Zoom replacement through the whole suite.
You may realize that they are still allowed to bundle Outlook because it is just an alternative client for E-Mail.
Every business which is in the Office365 ecosystem will never use a competitor to teams, because it is just bundled with Office "for free". There were competitors before teams was a thing, but the regulators realized if Microsoft would go forward with this, an entire Market Segment would just die.
Making an Antitrust Case out of this, not only protects current communication system providers but also opens the market up for more competition.
Some people have individual preferences--even strong ones--but I'm not sure how much there is to truly distinguish the major solutions at this point.
No. Team communication can happen just fine without some ridiculous chat program. Many businesses just want office and have other methods of communication, and want to use other chat apps. If teams is included in Office, it will make it harder for other companies to sell their products. People should pay for what they want, and not get a bunch of useless, bloated junk along with it.
Seems to me a rather circular definition, because I'm not sure anyone except Microsoft has a 'productivity suite'?
Other than Google, but I wouldn't count gmail and a dozen cancelled chat platforms as an IRC/Slack competitor except in the very loosest sense.
LibreOffice and its descendents (e.g. Collabora) spring to mind immediately. There are a few. Apple has its own tools (Keynote, etc) but I don't think they're necessarily a suite.
There aren't going to be a lot of new productivity suites, due to how overwhelmingly dominant Microsoft is.
In fact, the key metric for any office site isn't its features or numerical prowess, but rather how well it can read and write Microsoft office files.
This was the same 20 years ago. Netscape lost the browser wars not because of bundling. Netscape lost because Netscape Navigator 4 was crashy garbage, possibly the worst browser ever made. The reason Firefox was developed was because Netscape was so intolerably bad, an alternative to the alternative needed developed.
You know the old saying, "If you can't beat them, go cry to the European Commission."
Any old slog of a company full of windoze admins will always vote for the quick/easy of enabling Teams to show some modernization value to an org vs. going out of their way with Slack.
Anyone using Slack does so because they are pointedly NOT Microsoft, or has ever actually used Teams prior to know how soul-crushing it is. Particularly so if you have a lot of Mac and/or Linux users. Like Office, M$ treat any non-Windows user as a blatant alien anomaly with minimal support or care, if any.
I support Microsoft as much as they support me as a Linux user stuck helping customers of mine with Windoze environments. I simply hate any of them that make me use Teams, so they usually don't remain customers long if so.
They've already put it out there and gotten their free market share.
With Slack orgs, people genuinely communicate casually and friendly, but in every Teams org, it's like people are afraid of saying anything like they're being monitored by the government. People seem to treat Teams like email, but more weird and dysfunctional as only Microsoft can make with something having to do with human interaction.
Maybe Slack or Zoom should add office capabilities and try to compete on features and price?
Whether a company that's orders of magnitude smaller, with nowhere near the same reach and force, would be considered engaging in anti-trust if they did similar bundling is basically unrelated to why Microsoft unbundling their Teams product from Office would stop them from being further investigated. Past violations of the law don't magically stop having been violations just because you decided to stop violating the law.
The real problem, IMHO, is that Zoom and Slack have crazy high prices for what they offer.
WhatsApp is free, Signal is free, Telegram is free, Viber is free, Messenger is free, Skype is free, etc. Yes, you can say that you are product or whatever, in the end, for me, the value proposition that Slack and Zoom have is not worth their cost. Slack, is charging almost 15 euros per user per month! That is crazy expensive vs Google Suite, Office 365, Zoho Office, etc., etc.
For me to consider Slack/Zoom, they should not cost more than 5 euros per month each. They should lower the price to get more customers, not keep this crazy high price.
The EU investigates and metes out punitive measures to all companies that exploit their market position in the EU to prevent entry by, or to push out, competition though anti-trust practices. Whether the competition makes products that people want, or whether there even is any competition is entirely irrelevant to that, the crime is "breaking anti-trust law".
Now of course, some of those fines are no more than a slap on the wrist, but some of them are properly "you fucked up hard and your business is on the line" high. Like Google getting fined 2.5 billion dollars.
And in this case the EU is being pretty soft: Microsoft knew they were going to be hit with this order from the start, because they've already been through this several times in the past with their IE and Media Player bundling. Making the decision to not fine them is the curious part here, not the part part where the EU told them to do what they already told them to do several times in the past that they appealed, lost, and complied with.
"Well why don't they go after Facebook then?" oh, you mean https://ec.europa.eu/commission/presscorner/detail/pl/IP_17_...?
"Okay, well, why is Apple allowed to-"? oh you mean https://www.theverge.com/2023/2/28/23618264/eu-antitrust-cas...
"Fine, but-" just stop.
If a company violates EU anti-trust law, they're going to get investigated either by individual member states, or if the violation's significant enough, by the EU itself.
But when they regulate the unbundling and Microsoft might make me pay extra to use something that I always had "included", they are actively making more difficult to run a business.
It's just a tool. If I want to use Zoom, I will use it. It's not like I am being "protected" by a move like this.