Here's his post.

Chris has some good points in his post, but I wonder if Chris has read the article in eWeek. We aren't trying to compete with Team System.  Here are some quotes from the eWeek article:

This is not a competing product to VSTS," said Alan Stevens, NTeam's co-founder, also in Knoxville. "This is a result of our enthusiasm for the idea of having integration between tasks, bugs, tests, specs and source control. We don't initially plan to implement all the functionality of VSTS."

Bentley said NTeam will target small and midsize developers that want the functionality of a VSTS-like product but cannot afford it or prefer not to pay high fees.

Chris says this in his post:

If NTeam is such a great idea, why wasn't it started long ago, rather than just after VSTS pricing was announced?

I agree with this.  Why wasn't this done long ago?  I don't have an answer.  I can say that I love what Microsoft has done with Team System.  For companies that have the resources to afford Team System I would recommend it.  The trick is that many companies can't afford it, just as many companies can't afford the VSTS competitors like Rational.  Don't get me wrong, I don't disagree with the pricing of Team System.  If Microsoft lowered the price then it wouldn't be considered by the type of people who purchase Rational.  They need to price it in that ballpark to compete. 

Microsoft had a great idea with Team System.  They saw the direction that development was going and they created a tool to connect it all.  The founders of NTeam saw what Microsoft did and realized that they left a hole in the market that needed to be filled.

Take all my comments with a grain of salt since I'm on the NTeam team.