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Users can choose to mark a message as urgent or important. Teams allows users to format text and use emojis during chats. Chats in Teams are persistent so users do not have to check a conversation history unlike Skype for Business. Teams allows users to communicate through chats. Microsoft Teams had a hours-long outage in July 2022. On June 22, 2020, Microsoft announced that its acquired video game live streaming service Mixer would shut down in July of that year and that its staff would be transferred to the Microsoft Teams division. On a single day in April, it logged 4.1 billion meeting minutes. Microsoft reported that by April 2020, Microsoft Teams had hit 75 million daily users. On March 19, 2020, Microsoft announced Microsoft Teams had hit 44 million daily users, in part due to the COVID-19 pandemic. The feature was designed for employees who speak with customers or run day-to-day operations.

It announced a 'Walkie Talkie' feature in early 2020 that uses push-to-talk on smartphones and tablets over Wi-Fi or cellular data. This was an increase from 13 million in July of that year. On November 19, 2019, Microsoft announced Microsoft Teams reached 20 million active users. Hosted Skype for Business Online was discontinued for new Office 365 customers that same month and was discontinued entirely on July 31, 2021. In September 2019, Microsoft announced that Skype for Business would be phased out in favor of Teams.

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In January 2019, Microsoft released an update targeting 'Firstline Workers' in order to improve the interoperability of Microsoft Teams between different computers for retail workers.

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On July 12, 2018, Microsoft announced a free version of Microsoft Teams, offering most of the platform's communication options for no charge but limiting the number of users and team file storage capacity. On May 3, 2017, Microsoft announced Microsoft Teams would replace Microsoft Classroom in Office 365 Education (formerly known as Office 365 for Education). In response to Teams' announcement, Slack deepened in-product integration with Google services. Microsoft has since added this functionality. ZDNet reported that the companies were not competing for the same audience, as Teams, at the time, did not let members outside the subscription join the platform, and small businesses and freelancers would have been unlikely to switch. Though Slack is used by 28 companies in the Fortune 100, The Verge wrote executives will question paying for the service if Teams provides a similar function in their company's existing Office 365 subscription at no added cost. Slack ran a full-page advertisement in the New York Times acknowledging the competing service. After the departure of Lu later that year, Microsoft announced Teams to the public as a direct competitor to Slack on November 2, 2016. Qi Lu, EVP of Applications and Services, was leading the push to purchase Slack. On March 4, 2016, Microsoft had considered bidding $8 billion for Slack, but that Bill Gates was against the purchase, stating that the firm should instead focus on improving Skype for Business. On August 29, 2007, Microsoft purchased Parlano and its persistent group chat product, MindAlign.

Microsoft Teams is a web-based desktop app, developed on top of the Electron framework from GitHub which combines the Chromium rendering engine and the Node.js JavaScript platform. It was created during an internal hackathon at the company headquarters, and is currently led by Microsoft corporate vice president Brian MacDonald. Microsoft announced Teams at an event in New York, and launched the service worldwide on March 14, 2017. As of 2022, it has about 270 million monthly users.

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Throughout the COVID-19 pandemic, Teams, and other software such as Zoom and Google Meet, gained much interest as many meetings moved to a virtual environment. Teams is replacing other Microsoft-operated business messaging and collaboration platforms, including Skype for Business and Microsoft Classroom. Teams primarily competes with the similar service Slack, offering workspace chat and videoconferencing, file storage, and application integration. Microsoft Teams is a proprietary business communication platform developed by Microsoft, as part of the Microsoft 365 family of products. English, Albanian, Akan, Arabic, Azerbaijani, Basque, Catalan, Croatian, Czech, Danish, Dutch, Estonian, Filipino, Finnish, French, Galician, German, Hindi, Hungarian, Icelandic, Indonesian, Italian, Japanese, Korean, Latvian, Lithuanian, Norwegian Bokmål, Norwegian Nynorsk, Polish, Portuguese, Russian, Serbian, Simplified Chinese, Slovak, Slovenian, Spanish, Swedish, Thai, Traditional Chinese, Turkish, Vietnamese and Welsh.

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