Microsoft is still not giving up on building an enterprise messaging service and has launched Microsoft Teams. The Redmond-headquartered company will now be taking on newer services like Slack and Facebook’s Workplace. Slack, on its part, has issued a full page ad and said that it was “genuinely happy to have competition” in the space.
Remember, Microsoft had bought Yammer for $1.2 billion in 2012. Yammer was a closed social network for enterprises. At the time of acquisition, Microsoft said it would continue to invest in developing Yammer’s standalone product and over time, users can expect integrations to Microsoft SharePoint, Office 365, Dynamics and Skype.
It seems that the company made good on that promise and Microsoft said that Teams was built ground up on the Office 365 global, secure cloud. “Team conversations are, by default, visible to the entire team, but there is of course the ability for private discussions. Skype is deeply integrated, so teams can participate in voice and video conferences,” the company added in its blog. Yammer is also integrated for sharing posts in Teams.
The New York Times points out that CEO Satya Nadella’s priority will be to work on needs of Office 365 users and that Teams is poised for the same. In a recent call with analysts, Nadella said that the monthly active users for Office 365 commercial are now over 85 million, a 40% growth year-on-year.
Word, Excel, PowerPoint, SharePoint, OneNote, Planner, Power BI and Delve are all built into Microsoft Teams.
The service will available in preview in 181 countries and in 18 languages to commercial customers with Office 365 Enterprise or Business plans and will become generally available in the first quarter of calendar year 2017.
Focus on enterprise tech
In July, Microsoft built a new video streaming service for businesses called Stream which will enable organizations and employees to collaborate with video more easily. Stream allows users to upload videos and they can be organized by starting a channel based on teams, groups and topics.
In June, it bought professional networking site LinkedIn in an all cash deal valued $26.2 billion which includes LinkedIn’s net cash. Microsoft expects LinkedIn’s financials to be reported as part of its Productivity and Business Processes segment.
– Microsoft reported overall GAAP revenues of $20.4 billion during Q1FY17, which is marginally up from $20.3 billion in the same quarter last year (Q1FY16).
– Revenue increased $74 million, driven by growth in Intelligent Cloud and Productivity and Business Processes, offset in part by an increase in the net revenue deferral from Windows 10 and lower revenue from more personal computing.
– Azure revenue grew 116% with Azure compute usage more than doubling year-over-year.
– Operating income decreased $568 million or 10%, primarily due to lower gross margin and an increase in research and development expenses, offset in part by lower sales and marketing expenses.