Microsoft’s marketing exec in charge of Teams defends the workplace chat app’s rapid user growth numbers: ‘passive actions do not count’ (MSFT)

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  • Microsoft’s work environment chat app, Groups, has proliferated, reaching 20 million day-to-day active users in November and putting pressure on Slack.
  • Microsoft’s head of marketing for its Microsoft 365 division, a package of company apps which consists of Groups, Jared Spataro, protected Team’s daily active user numbers, resolving previous criticism from rival Slack, which stated the user development is not organic.
  • Spataro said at the Goldman Sachs Technology and Web Conference in San Francisco on Wednesday, that the worth Teams can provide to a company aiming to improve its communication and culture is what’s driven its growth.
  • Microsoft has increased focus on Teams after seeing this need, adding more sales people and ensuring that Teams can incorporate well with the other software in Microsoft 365.
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Microsoft has actually touted the growing popularity of its work environment chat app, Teams, sharing in November that the app had reached 20 million users, putting it well ahead of its chat competitor, Slack.

On Wednesday, Microsoft’s head of marketing for its Microsoft 365 division, Jared Spataro, provided details about how the business determines Teams’ day-to-day active user numbers, pushing back against critics who state Microsoft’s metrics aren’t all that they appear to be.

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” Daily active users for us is the maximum number of users who take a deliberate action over a 24- hour duration … What we call passive actions do not count,” Spataro said at the Goldman Sachs Innovation and Web Conference in San Francisco.

He added that Microsoft doesn’t count things like car booting the app, reducing a window, closing the app, or Skype towards its Groups daily active user count.

His comments come as Groups has actually put competitive pressure on smaller rival Slack, which went public through direct listing last year. Slack’s CEO Stewart Butterfield has formerly slammed Group’s user growth as inorganic saying that users of older Microsoft items are being required to move to Teams. And the company has actually touted the worth of its 12 million active users, by highlighting figures that demonstrate how engaged users are with the item.

Teams is part of Microsoft 365, a package of service apps, what Microsoft introduced in 2017 and includes Office 365– cloud-based variations of the company’s flagship productivity applications such as Word and Excel– collaboration tools like OneDrive and SharePoint, the Microsoft Teams chat app, and even the Windows 10 operating system itself.

This bundling method has come under analysis from Slack, with CEO Butterfield formerly calling Microsoft a ” remarkably unsportsmanlike” competitor.

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Pressing a “4-in-1” value proposition

Spataro said to replicate what Teams can do it takes a number of competitors items. “If you’re trying to do what Teams does, you’re going to gather Slack, Zoom, Dropbox and Google … Against each of those rivals, we have strengths and we have spaces. And I would simply say that we are incredibly clear on what our spaces protest the leaders in those categories and we invest every day, every day, every day to close those gaps,” he stated.

The Microsoft officer ascribed the development of Groups to the big numbers of companies in the process of improving their internal communications tools and their corporate cultures.

” They’re able to state, Hey, this is a brand-new way of doing things. There’s a 4-in-1 worth prop there. There’s chat, meet, call, collaborate, and they say, we’re going to do particular service procedures this way. So it has some type of symbolic worth to business as they alter,” Spataro stated.

As Microsoft began to understand the need for Teams, it upped the resources behind the product– including more “client success managers” or salespeople, and ensuring that Teams can integrate well with the other software Microsoft provides.

Spataro said his strategy to appeal to customers is to highlight the integration that Teams has with other Microsoft office performance tools, so it can be a main workspace hub for workers. That both makes the procedure of working easier he said and offers the exact same security tools for all the tools a company may be using for efficiency.

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Groups does not have a set user limitation as it depends on Azure Active Directory site, a cloud identity service that can support a limitless variety of users, a Microsoft spokesperson informed Company Insider. But while an unrestricted number of people can be on a business’s Group’s platform, each work area or “Group” it produces within that can hold up to 5,000 users and 200 channels, which is the channel scalability constraint Spataro describes.

Slack has formerly stated that its item is more attractive to large companies due to the fact that it can support an unlimited number of channels and users. Slack’s business grid item, which is suggested for big organizations, is currently able to hold up to 500,000 users, and a Slack representative just recently informed Service Insider it would continue to expand that number if it had a customer who fulfilled that user limit. Slack enables endless offices in enterprise grid, 250,000 users per workspace, unlimited channels per office, and unrestricted members per channel.

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