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Zoom drops 3% as Microsoft unveils cheap standalone version of Teams
$Zoom Communications (ZM.US)$ shares are dropping 3.5% to $203.94 as $Microsoft (MSFT.US)$ unveiled a standalone version of Teams for small businesses.
Microsoft Team Essentials will cost $4 per user per month and get access to core features of Teams, without having to also subscribe to Office, The Verge notes.
In comparison, Zoom has a small business plan that costs $19.99 per month per license. Zoom Pro, which the company says is "great for small teams," costs $14.99 per month per license.
Small businesses previously had to pick a Microsoft 365 Business Basic plan, which cost $5 per month per user, or other platforms, such as Slack - owned by $Salesforce (CRM.US)$, Google Workspace $Alphabet-A (GOOGL.US)$, Workplace from $Meta Platforms (FB.US)$ or others.
The standalone version of Microsoft Teams Essentials has a simpler chat interface and focuses on meetings and video calls, Jared Spataro, head of Microsoft 365, told the news outlet.
Microsoft Teams Essentials has 10GB of OneDrive storage, whereas Business Basic has 1TB worth of storage. Essentials also does not have the ability to record meetings, provide transcripts, translation, separate rooms or channels and other functions that the more expensive plan has.
Last month, Zoom's shares plunged after the company reported fiscal third-quarter results that disappointed Wall Street and acknowledged that it would face headwinds in 2022 as more employees return to offices around the globe.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Robbie Showen : Shorted zoom in the low 200’s and loving the action. Finally some rationality in the market. Why would a non-growing camera app, commoditized, with so much competition be worth north of 60B?
TCFIT_365 : Given that Zoom has become a verb, I couldn't be more happy to see plenty of competition in the video call segment. Between Teams, Google Meet, and Zoom - plus smaller players - prices should come down and features should go up.
Dogoro777 : Yikes, I had no idea Zoom was that expensive!
I use both of these products as well as Webex in my job and Teams is a true collaboration tool. Granted we are an Office shop, but Zoom is a joke at that cost compared to $5 per month per user for what you get with Teams!
Cake_WU : Teams is worst than AOL messenger. I work in a big corporation with multiple external companies. Try switching between companies in Team is guaranteed getting kick off. Video quality sucks as well. The only reason we use team because it's FREE with our current Microsoft license.
wallstreet wolf Cake_WU : But that's the point, between free and $4 a month, AND you can bet Microsoft will upgrade it, Zoom is doomed. How much growth for this growth valued stock? None. How about existing customers who can save a bundle by switching? There doesn't seem to be a way out except if they sell themselves and if they do, at a fraction of the $60 billion they are at.
Raeann Loebs : ZM has its place. In my university they got MS office license as well as lectures with Zoom Video. More than 50% of students prefer to stream the lecture over in-person lectures. The stock market is underpricing the moat ZM has built in the education system. Universities are not the kind of insititutions to switch from one app to another without strong incentive
CMebaby Raeann Loebs : Zoom needs to solidify its moat in the educational system by acquiring an LMS company. I am surprised they did not do that yet...
Mack Swire : Everyone knew Fakebook and Microsoft were in this area and building. Microsoft already owns Skype. They will probably fold them into Teams eventually. Microsoft will eventually take over this space.
jedgggg : lol - Teams is "free" with MSFT "OFFICE 365" and has been for years.
For years SMB/enterprise is increasingly using ZM despite already having Teams available for "free" as part of the MSFT package they already have.
Yes Teams is the silver medalist in this race folks.
Bill kim : The lower price for "essentially" the same service that does the job for most people will always win out. Good job Microsoft, you win yet again in this space.
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