![]() ![]() The move comes on the heels of Microsoft stating it will increase the pricing on many of its products, including raising the price of a Microsoft 365 subscription from $5 to $6 per user/month. In the above chart, you can see the fallout for ZM investors due to this announcement. ![]() This improves on the company's free Teams product and offers a cheaper alternative to the $5 per user/month companies pay for a Microsoft 365 Business Basic subscription, which provides more cloud storage and comes with most of Microsoft's suite of Office products. To add some more context, Microsoft is releasing a new low to mid-tier Teams product they have dubbed "Teams Essentials," which will cost $4 per user/month and come with, well, the essentials like support for large meetings, unlimited group meetings, and cloud storage. With already lofty expectations based on best-in-class margins, Zoom has a lot to lose from this change and I think investors should exercise caution. Microsoft ( NASDAQ: MSFT) announced on Wednesday that it would be releasing a standalone version of its Teams business communication product that would occupy the price tier between its free plan and a Microsoft 365 subscription in a bid to compete with Zoom ( NASDAQ: ZM ), Webex ( CSCO ), and other video conferencing software companies for the growing list of potential customers that are going virtual. Alexsl/iStock Unreleased via Getty Images
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