Last year, Microsoft announced that Teams would be unbundled from Office 365 and Microsoft 365, following European regulatory pressure. At the time, we covered it in our blog “Microsoft Teams Breaks Away from Office 365,” noting how this move aimed to give customers more flexibility and address antitrust concerns.
Now, Microsoft has taken the next step and in some ways, is reversing course with a new update called “Evolving Our Productivity Offerings”.
What’s Actually Changing
Starting November 1, 2025, Microsoft will offer two versions of its productivity suites:
- One with Teams included.
- One without Teams for organizations using other collaboration tools like Zoom or Slack.
Pricing differences will vary, but Microsoft says the “with Teams” version will cost slightly more. Existing customers can keep their current plans and transition at renewal if they choose. At the same time, Microsoft is introducing new interoperability and data-portability commitments. These include:
- Open APIs and export tools for Teams data.
- Access to key Microsoft 365 services (like Exchange Online and SharePoint) for third-party apps.
- Continued support for add-ins and integrations, allowing competing platforms to connect natively with Teams.
These moves are part of Microsoft’s broader goal to resolve EU competition concerns while keeping Teams integrated where customers want it.
So… Is Teams Really “Breaking Away”?
Not exactly. When we first covered this topic, the story looked like a clean break with Teams separating from Office 365 entirely. Microsoft’s new announcement changes that: Teams isn’t leaving the Microsoft 365 ecosystem; it’s simply becoming optional.
Rather than forcing every user to adopt Teams, Microsoft is offering the choice but still keeping Teams as a tightly connected, first-party collaboration hub. For businesses, this means more licensing flexibility without losing the productivity benefits of Microsoft’s unified platform.
What It Means for Organizations
- More Choice – You can now choose the suite that best fits your collaboration strategy.
- Easier Integration – Open APIs and new migration tools should make it easier to connect Teams with other solutions.
- Predictable Transitions – Existing contracts remain valid, and Microsoft will honor current discounts for customers who switch from “with Teams” to “without Teams” editions.
- No Immediate Disruption – Nothing changes overnight. Most customers can continue as-is until their next renewal period.
The Bottom Line
Microsoft’s latest update doesn’t undo the unbundling, it refines it. Teams is no longer mandatory, but it’s still central to Microsoft’s productivity approach.At Mirazon, we help businesses navigate these type changes, from licensing to integration and migration. If you’re unsure how this impacts your organization, our team can help you assess options and plan your next steps.
Contact Mirazon today to make sure your Microsoft 365 environment stays aligned with your goals.