Their engineers have been working tirelessly to make Sharepoint/Office/Active Directory as terrible as it possibly could be while still technically being functional, while continuing to raise prices on them. I've seen many small business start to chose Google Workspace over them, the cracks have formed and are large enough that they are no longer in a position were every business just go with Office because that's what everyone uses.
I see more businesses on the office + Team stack then Google workspace. So far more.
I think the differentiator is Team, which Google for some mysterious reason can't build or doesn't want to.
It is the one thing that makes me wonder about Microsoft's future. It had seemed like they were willing to throw Windows and Xbox under the bus so long as the server cash cow continued. But it that starts to fade, they could be in some real trouble a decade from now.
Sharepoint has never not been terrible.