We got a new enterprise subscription and we were surprised to see that the Team Folder functionality is not there. We cannot see “team folders” and we cannot create them either. Despite that, in the admin section, there seems to be some configuration around who can create Team Folders (way-to-go for UX).

Is the feature being deprecated? Why?

The help center is quite clear about this (link): *Enterprise accounts created after May 15th don't have access to team folders. We recommend leveraging team hubs to organize teams and share documents within your Enterprise account.

Team Hubs looks like an offering around agile teams that need to separate their whiteboards and designs. As Azure SCIM (or other SSO SCIM) is not supported currently, managing users to teams is manual effort on top of everything else. Counter to that, the use case of team folders was different. Quoting the description of team folders within the admin panel:

Team Folders are spaces for users to collaborate within teams or on individual projects. Any work that lives in a Team Folder is owned by the account rather than an individual, and is managed by the collaborators of the Team Folder. Learn more

Users would get access to the team folders the moment a license was assigned to them as they exist on the account level.

Closing, the functionality behind team folders is crucial. Team Hubs is a great way to create separate spaces for agile teams to work in their own space, but not everybody needs that. The flat structure with users having access to all documents is still needed. Please, bring back team folders.