Microsoft is set to remove its free VPN feature from Microsoft 365 subscriptions later this month, a move that comes on the heels of a significant price hike for the service. The company announced that it would be dropping the privacy protection feature, which utilized the Microsoft Defender app to encrypt internet traffic and hide IP addresses, citing low usage and a desire to invest in new areas that better align with customer needs.

The VPN feature, which was originally designed as a privacy protection tool, was never fully featured enough to be widely adopted. Microsoft restricted users to a 50GB monthly data limit, and the VPN automatically connected to a local region, making it impossible to work around geo-restrictions – a key use case for many VPN users. As a result, the feature saw limited adoption, leading Microsoft to pull the plug.

Microsoft 365 subscribers will still have access to identity theft and credit monitoring in the US, but they will need to look elsewhere for VPN support. The removal of the VPN benefit comes just weeks after Microsoft raised subscription prices for the first time in 12 years, bundling Office AI features into Microsoft 365 and hiking prices by an extra $3 per month. Users can still downgrade to a classic plan that maintains the existing price for Personal or Family subscriptions without the added AI features.

The move has sparked concerns among users, who are already reeling from the recent price hike. Many are questioning the value proposition of Microsoft 365, particularly in light of the removal of the VPN feature. Industry analysts suggest that Microsoft's decision may be a strategic move to push users towards more premium VPN services, potentially generating additional revenue streams for the company.

The removal of the VPN feature also raises questions about Microsoft's commitment to user privacy and security. While the company has emphasized its investment in new areas that align with customer needs, it remains to be seen how these investments will benefit users in the long run. As the tech industry continues to grapple with issues of data privacy and security, Microsoft's decision to drop its VPN feature is likely to be closely scrutinized by users and industry watchers alike.

In the broader context, Microsoft's move highlights the ongoing evolution of the software-as-a-service (SaaS) landscape. As companies like Microsoft continue to refine their offerings and pricing strategies, users are being forced to re-evaluate their subscription choices and weigh the value of the services they receive. As the SaaS market continues to mature, it will be interesting to see how companies like Microsoft adapt to changing user needs and preferences.