Microsoft Teams reaches 300M monthly users as Skype phases out, while EU antitrust probes and enterprise migration hurdles highlight challenges in the collaboration software market.
Microsoft’s Q3 2023 earnings confirmed Teams now serves 300 million monthly active users, eclipsing Skype, which will sunset its infrastructure in 2024. The EU’s July 2023 antitrust probe into Teams-Office 365 bundling and Zoom’s slowing growth (3% YoY revenue rise in Q1 2024) underscore a shifting landscape. Forrester reports 68% of IT leaders cite Teams’ complexity as enterprises grapple with migration costs.
The Rise of Teams and Skype’s Sunset
Microsoft announced in its Q3 2023 earnings report that Teams now serves over 300 million monthly active users, up from 270 million in January. This growth coincides with Skype’s planned 2024 infrastructure shutdown, particularly affecting government clients still using Skype for Business Online. A Microsoft spokesperson stated: ‘Teams represents the future of intelligent collaboration, integrating AI-powered features like meeting recaps and real-time translation.’
Antitrust Scrutiny Intensifies
The European Commission launched a formal investigation in July 2023 alleging Microsoft violates competition rules by bundling Teams with Office 365. ‘This mirrors the 1990s Windows Media Player bundling case,’ noted antitrust lawyer Margrethe Vestager in a press release. Microsoft now faces potential fines or mandatory unbundling in EU markets, similar to remedies imposed during its $2.2 billion EU antitrust settlement in 2013.
Zoom’s Plateau and Enterprise Struggles
While Zoom reported $1.14 billion in Q1 2024 revenue (3% YoY growth), its slowest since 2018, Forrester’s June 2023 survey revealed 42% of enterprises face budget overruns migrating from Skype to Teams. ‘Teams’ 1,400+ integrations create feature overload,’ said Forrester analyst J.P. Gownder. ‘Many organizations are opting for Zoom’s streamlined GovCloud offering instead.’
Historical Context: From Bundling Battles to SaaS Transitions
Microsoft’s current antitrust challenges echo its 2001 settlement with the DOJ over Internet Explorer-Windows bundling, which reshaped software markets. Similarly, the decline of Skype follows a pattern seen when Cisco sunset WebEx Teams in 2021, forcing 18 million users to migrate. As Wired’s analysis notes: ‘Platform decay becomes inevitable when vendor priorities shift—users either adapt or seek alternatives, but rarely forgive forced transitions.’ The SaaS sector’s 72% customer retention rate (per Gartner) suggests enterprises will likely absorb Teams’ growing pains, despite costs.
