Microsoft brings transcriptions to Word

Microsoft today launched Transcribe in Word, its new transcription service for Microsoft 365 subscribers, into general availability. It’s now available in the online version of Word, with other platforms launching later. In addition, Word is also getting new dictation features, which now allow you to use your voice to format and edit your text, for example.

As the name implies, this new feature lets you transcribe conversations, both live and pre-recorded, and then edit those transcripts right inside of Word. With this, the company goes head-to-head with startups like Otter and Google’s Recorder app, though they all have their own pros and cons.

Image Credits: Microsoft

To get started with Transcribe in Word, you simply head for the dictate button in the menu bar and click on ‘transcribe.’ From there, you can record a conversation as it happens — by recording it directly through a speakerphone and your laptop’s microphone, for example — or by recording it in some other way and then uploading that file. The service accepts .mp3, .wav, .m4a and .mp4 files.

As Microsoft Principal Group PM Manager for Natural User Interface & Incubation, Dan Parish, noted in a press briefing ahead of today’s announcement, when you record a call live, the transcription actually runs in the background while you conduct your interview, for example. The team purposely decided not to show you the live transcript, though, because its user research showed that it was distracting. I admit that I like to see the live transcript in Otter and Recorder, but maybe I’m alone in that.

Like with other services, Transcribe in Word lets you click on individual paragraphs in the transcript and then listen to that at a variety of speeds. Since the automated transcript will inevitably have errors in it, that’s a must-have feature. Sadly, though, Transcribe doesn’t let you click on individual words.

One major limitation of the service right now is that if you like to record offline and then upload your files, you’ll be limited to 300 minutes, without the ability to extend this for an extra fee, for example. I know I often transcribe far more than 5 hours of interviews in any given month, so that limit seems low, especially given that Otter provides me with 6,000 minutes on its cheapest paid plan. The max length for a transcript on Otter is 4 hours while Microsoft’s only limit for is a 200MB file upload limit, with no limits on live recordings.

Another issue I noticed here is that if you mistakenly exit the tab with Word in it, the transcription process will stop and there doesn’t seem to be a way to restart it.

It also takes quite a while for the uploaded files to be transcribed. It takes roughly as long as the conversations I’ve tried to transcribe), but the results are very good — and often better than those of competing services. Transcribe for Word also does a nice job separating out the different speakers in a conversation. For privacy reasons, you must assign your own names to those — even when you regularly record the same people.

It’d be nice to get the same feature in something like OneNote, for example, and my guess is Microsoft may expand this to its note-taking app over time. To me, that’s the more natural place for it.

Image Credits: Microsoft

The new dictation features in Word now let you give commands like “bold the last sentence,” for example, and say “percentage sign” or “ampersand” if you need to add those symbols to a text (or “smiley face,” if those are the kinds of texts you write in Word).

Even if you don’t often need to transcribe text, this new feature shows how Microsoft is now using its subscription service to launch new premium features to convert free users to paying ones. I’d be surprised if tools like the Microsoft Editor (which offers more features for paying users), this transcription service, as well as some of the new AI features in the likes of Excel and PowerPoint, didn’t help to convert some users into paying ones, especially now that the company has combined Office 365 and Microsoft 365 for consumers into a single bundle. After all, just a subscription to something like Grammarly and Otter would be significantly more expensive than a Microsoft 365 subscription.

 


By Frederic Lardinois

Microsoft to open first data center in New Zealand as cloud usage grows

In spite of being in the midst of a pandemic sowing economic uncertainty, one area that continues to thrive is cloud computing. Perhaps that explains why Microsoft, which saw Azure grow 59% in its most recent earnings report, announced plans to open a new data center in New Zealand once it receives approval from the Overseas Investment Office.

“This significant investment in New Zealand’s digital infrastructure is a testament to the remarkable spirit of New Zealand’s innovation and reflects how we’re pushing the boundaries of what is possible as a nation,” Vanessa Sorenson, general manager at Microsoft New Zealand said in a statement.

The company sees this project against the backdrop of accelerating digital transformation that we are seeing as the pandemic forces companies to move to the cloud more quickly with employees often spread out and unable to work in offices around the world.

As CEO Satya Nadella noted on Twitter, this should help companies in New Zealand that are in the midst of this transformation. “Now more than ever, we’re seeing the power of digital transformation, and today we’re announcing a new datacenter region in New Zealand to help every organization in the country build their own digital capability,” Nadella tweeted.

The company wants to do more than simply build a data center. It will make this part of a broader investment across the country, including skills training and reducing the environmental footprint of the data center.

Once New Zealand comes on board, the company will boast 60 regions covering 140 countries around the world. The new data center won’t just be about Azure, either. It will help fuel usage of Office 365 and the Dynamics 365 back-office products, as well.


By Ron Miller

Microsoft acquires Mover to help with Microsoft 365 cloud migration

Microsoft wants to make it as easy as possible to migrate to Microsoft 365, and today the company announced it had purchased a Canadian startup called Mover to help. The companies did not reveal the acquisition price.

Microsoft 365 is the company’s bundle that includes Office 365, Microsoft Teams, security tools and workflow. The idea is to provide customers with a soup-to-nuts, cloud-based productivity package. Mover helps customers get files from another service into the Microsoft 365 cloud.

As Jeff Tepper wrote in a post on the Official Microsoft Blog announcing the acquisition, this about helping customers get to the Microsoft cloud as quickly and smoothly as possible. “Today, Mover supports migration from over a dozen cloud service providers — including Box, Dropbox, Egnyte, and Google Drive — into OneDrive and SharePoint, enabling seamless file collaboration across Microsoft 365 apps and services, including the Office apps and Microsoft Teams,” Tepper wrote.

Tepper also points out that they will be gaining the expertise of the Mover team as it moves to Microsoft and helps add to the migration tools already in place.

Tony Byrne, founder and principal analyst at Real Story Group, says that moving files from one system to another like this can be extremely challenging regardless of how you do it, and the file transfer mechanism is only part of it. “The transition to 365 from an on-prem system or competing cloud supplier is never a migration, per se. It’s a rebuild, with a completely different UX, admin model, set of services, and operational assumptions all built into the Microsoft cloud offering,” Byrne explained.

Mover is based in Calgary, Canada. It was founded in 2012 and raised $1 million, according to Crunchbase data. It counts some big clients as customers including AutoDesk, Symantec and BuzzFeed.


By Ron Miller

India’s Fyle bags $4.5M to expand its expense management platform in US, other international markets

Fyle, a Bangalore-headquartered startup that operates an expense management platform, has extended its previous financing round to add $4.5 million of new investment as it looks to court more clients in overseas markets.

The additional $4.5 million tranche of investment was led by U.S.-based hedge fund Steadview Capital, the startup said. Tiger Global, Freshworks, and Pravega Ventures also participated in the round. The new tranche of investment, dubbed Series A1, means that the three-and-a-half-year old startup has raised $8.7 million as part of its Series A financing round, and $10.5 million to date.

The SaaS startup offers an expense management platform that makes it easier for employees of a firm to report their business expenses. The eponymous service supports a range of popular email providers including G Suite and Office 365, and uses a proprietary technology to scan and fetch details from emails, Yash Madhusudhan, co-founder and CEO of Fyle, demonstrated to TechCrunch last week.

A user, for instance, could open a flight ticket email and click on Fyle’s Chrome extension to fetch all details and report the expense in a single-click in real-time. As part of today’s announcement, Madhusudhan unveiled an integration with WhatsApp . Users will now be able to take pictures of their tickets and other things and forward it to Fyle, which will quickly scan and report expense filings for them.

These integrations come in handy to users. “80%-90% of a user’s spending patterns land on their email and messaging clients. And traditionally it has been a pain point for them to get done with their expense filings. So we built a platform that looks at the challenges faced by them. At the same time, our platform understands frauds and works with a company’s compliances and policies to ensure that the filings are legitimate,” he said.

“Every company today could make use of an intelligent expense platform like Fyle. Major giants already subscribe to ERP services that offer similar capabilities as part of their offerings. But as a company or startup grows beyond 50 to 100 people, it becomes tedious to manage expense filings,” he added.

Fyle maintains a web application and a mobile app, and users are free to use them. But the rationale behind introducing integrations with popular services is to make it easier than ever for them to report filings. The startup retains its algorithms each month to improve their scanning abilities. “The idea is to extend expense filing to a service that people already use,” he said.

International expansion

Until late last year, Fyle was serving customers in India. Earlier this year, it began searching for clients outside the nation. “Our philosophy was if we are able to sell in India remotely and get people to use the product without any training, we should be able to replicate this in any part of the world,” he said.

And that bet has worked. Fyle has amassed more than 300 clients, more than 250 of which are from outside of India. Today, the startup says it has customers in 17 nations including the U.S., and the UK. Furthermore, Fyle’s revenue has grown by five times in the last five months, said Madhusudhan, without disclosing the exact figures.

To accelerate its momentum, the startup is today also launching an enterprise version of Fyle that will serve the needs of major companies. The enterprise version supports a range of additional security features such as IP restriction and single sign-in option.

Fyle will use the new capital to develop more product solutions and integrations and expand its footprint in international markets, Madhusudhan said. The startup, which just recently set up its sales and marketing team would also expand the headcount, he said.

Moving forward, Madhusudhan said the startup would also explore tie-ups with ERP providers and other ways to extend the reach of Fyle.

In a statement, Ravi Mehta, MD at Steadview Capital, said, “intelligent and automated systems will empower businesses to be more efficient in the coming decade. We are excited to partner with Fyle to transform one of the core business processes of expense management through intelligence and automation.”


By Manish Singh

In spite of slowing growth, Microsoft has been flexing its cloud muscles

When Microsoft reported its FY19, Q4 earnings last week, the numbers were mostly positive, but as we pointed out, Azure earnings growth has stalled. Productivity and business, which includes Office 365, has also mostly flattened out. But slowing growth is not always as bad as it may seem. In fact, it’s an inevitability that once you start to reach Microsoft’s market maturity, it gets harder to maintain large growth numbers.

That said, AWS launched the first cloud infrastructure service, Amazon Elastic Compute Cloud in August, 2006. Microsoft came much later to the cloud, launching Azure in February, 2010, but so were other established companies in Microsoft’s market share rearview. What did it do differently to achieve this success that the companies chasing it — Google, IBM and Oracle — failed to do? It’s a key question.

Let’s look at some numbers

For starters, let’s look at the most numbers for Productivity & Business Processes this year. This category includes all of its commercial and consumer SaaS products including Office 365 commercial and consumer, Dynamics 365, LinkedIn and others. The percentage growth started FY19 at 19% but ended at 14%

Screenshot 2019 07 19 14.34.00

When you look at just Office365 commercial earnings growth, it started at 36% and dropped down to 31% by Q4.


By Ron Miller

Microsoft wants you to work less

Microsoft today announced updates to its MyAnalytics platform and a new Outlook feature that are meant to help you work less, find more time to focus on the work that actually matters and, by extension, get more downtime.

Until now, for example, MyAnalytics, Microsoft’s tool for helping employees track their productivity, would provide you with a measure of how much time you spent working after hours. That’s not necessarily a healthy number to track. Going forward, MyAnalytics will track the number of days you managed to unplug after work and didn’t check your email or work on a document at 8pm (something Microsoft’s own PR department could learn from given that it has a tendency to provide essential press materials for next-day embargoes at 6:30pm). The idea here, obviously, is to get employees to focus on this number instead of how much they work when they are off the clock.

“Our customers often tell us they spend all day in meetings with little time to focus on pressing tasks and projects,” Microsoft communications chief Frank X. Shaw also noted in a press briefing ahead of today’s announcement.

To combat this, the company today launched a few new features that will let you set up regular ‘focus time.’ The first of this is a tool that lets you set up focus time each week, as well as a feature in Microsoft teams that will alert your fellow employees when you are trying to get things done.

Since your colleagues often don’t care about your flow, though, and are prone to scheduling yet another unnecessary meeting during those times, Microsoft is also launching a new AI-powered Outlook plugin that will help you rebook your focus time and find times for focusing on specific to-do items.

In the future, the company also plans to introduce well-being, networking and collaboration plans.

Focus plans will become available in preview in the next few months for Microsoft 365 and Office 365 users, with E5 customers getting them first.


By Frederic Lardinois

Slack integration with Office 365 one more step toward total enterprise integration

Slack’s goal of integrating enterprise tools in the chat interface has been a major differentiator from the giant companies it’s competing with like Microsoft and Facebook. Last year, it bought Astro, specifically with the goal of integrating enterprise productivity tools inside Slack, and today it announced new integrations with Microsoft OneDrive and Outlook.

Specifically, Slack is integrating calendar, files and calls and bringing in integrations with other services including Box, Dropbox and Zoom.

Andy Pflaum, director of project management at Slack, came over in the Astro deal and he says one of the primary goals of the acquisition was to help build connections like this to Microsoft and Google productivity tools.

“When we joined Slack, it was to build out the interoperability between Slack and Microsoft’s products, particularly Office and Office 365 products, and the comparable products from from Google, G Suite. We focused on deep integration with mail and calendar in Slack, as well as bringing in files and calls in from Microsoft, Google and other leading providers like Zoom, Box and Dropbox,” Pflaum, who was co-founder and CEO at Astro, told TechCrunch.

For starters, the company is announcing deep integration with Outlook that enables users to get and respond to invitations in Slack. You can also join a meeting with a click directly from Slack, whether that’s Zoom, WebEx or Skype for Business. What’s more, when you’re in a meeting your status will update automatically in Slack, saving users from manually doing this (or more likely forgetting to and getting a flurry of Slack questions in the middle of a meeting).

Another integration lets you share emails directly into Slack. Instead of copying and pasting or forwarding the email to a large group, you can click a Slack button in the Outlook interface share it as a direct message, with a group or to your personal Slack channel.

File sharing is not being left behind here either, whether from Microsoft, Box or Dropbox; users will be able to share files inside of Slack easily. Finally, users will be able to view full Office document previews inside of Slack, another step in avoiding tasking switching to get work done.

Screenshot: Slack

Mike Gotta, an analyst at Gartner who has been following the collaboration space for many years, says the integration has done a good job of preserving the user experience, while allowing for a seamless connection between email, calendar and files. He says that this could give them an edge in the highly competitive collaboration market, and more importantly allow users to maintain context.

“The collaboration market is highly fragmented with many vendors adding “just a little” collaboration to products designed for specific purposes. Buyers can find that this type of collaboration in context to the flow of work is more impactful than switching to a generalized tool that lacks situational awareness of the task at hand. Knowledge-based work often involves process and project related applications so the more we can handle transitions across tools the more productive the user experience becomes. More importantly there’s less context fragmentation for the individual and team,” Gotta told TechCrunch.

These updates are about staying one step ahead of the competition, and being able to run Microsoft tools inside of Slack gives customers another reason to stick with (or to buy) Slack instead of Microsoft’s competing product, Teams.

All of this new functionality is designed to work in both mobile and desktop versions of the product and is available today.


By Ron Miller

Windows Virtual Desktop is now in public preview

Last year, Microsoft announced the launch of its Windows Virtual Desktop service. At the time, this was a private preview, but starting today, any enterprise user who wants to try out what using a virtual Windows 10 desktop that’s hosted in the Azure cloud looks like will be able to give it a try.

It’s worth noting that this is very much a product for businesses. You’re not going to use this to play Apex Legends on a virtual machine somewhere in the cloud. The idea here is that a service like this, which also includes access to Office 365 ProPlus, makes managing machines and the software that runs on them easier for enterprises. It also allows employers in regulated industries to provide their mobile workers with a virtual desktop that ensures that all of their precious data remains secure.

One stand-out feature here is that businesses can run multiple Windows 10 sessions on a single virtual machine.

It’s also worth noting that many of the features of this service are powered by technology from FSLogix, which Microsoft acquired last year. Specifically, these technologies allow Microsoft to give the non-persistent users relatively fast access to applications like their Outlook and OneDrive applications, for example.

For most Microsoft 365 enterprise customers, access to this service is simply part of the subscription cost they already pay — though they will need an Azure subscription and pay for the virtual machines that run in the cloud.

Right now, the service is only available in the US East 2 and US Central Azure regions. Over time, and once the preview is over, Microsoft will expand it to all of its cloud regions.


By Frederic Lardinois

Microsoft acquires FSLogix to enhance Office 365 virtual desktop experience

Back in September, Microsoft announced a virtual desktop solution that lets customers run Office 365 and Windows 10 in the cloud. They mentioned several partners in the announcement who were working on solutions with them. One of those was FSLogix, a Georgia virtual desktop startup. Today, Microsoft announced it has acquired FSLogix. It did not share the purchase price.

“FSLogix is a next-generation app-provisioning platform that reduces the resources, time and labor required to support virtualization,” Brad Anderson, corporate VP for Microsoft Office 365 and Julia White, corporate VP for Microsoft Azure wrote in a joint blog post today.

When Microsoft made the virtual desktop announcement in September they named Citrix, CloudJumper, Lakeside Software, Liquidware, People Tech Group, ThinPrint and FSLogix as partners working on solutions. Apparently, the company decided it wanted to own one of those experiences and acquired FSLogix.

Microsoft believes by incorporating the FSLogix solution, it will provide a better virtual desktop experience for its customer by enabling better performance and faster load times, especially for Office 365 ProPlus customers.

Randy Cook, founder and CTO at FSLogix, said the acquisition made sense given how well the two companies have worked together over the years. “From the beginning, in working closely with several teams at Microsoft, we recognized that our missions were completely aligned. Both FSLogix and Microsoft are dedicated to providing the absolute best experience for companies choosing to deploy virtual desktops,” Cook wrote in a blog post announcing the acquisition.

Lots of companies have what are essentially dumb terminals running just the tools each employee needs, rather than a fully functioning stand-alone PC. Citrix has made a living offering these services. When employees comes in to start the day, they sign in with their credentials and they get a virtual desktop with the tools they need to do their jobs. Microsoft’s version of this involves Office 365 and Windows 10 running on Azure.

FSLogix was founded in 2013 and has raised over $10 million, according to data on Crunchbase. Today’s acquisition, which has already closed according to Microsoft, comes on the heels of last week’s announcement that the company was buying Xoxco, an Austin-based developer shop with experience building conversational bots.


By Ron Miller

Microsoft Teams gets bokeh and meeting recordings with transcripts

If you’ve ever attended a video meeting and wished that the speakers used really expensive cameras and lenses that allowed for that soft classy background blur of a portrait photo, then Microsoft wants to make that wish come true. The company announced a number of updates to Microsoft Teams today, and one of those is a feature that automatically detects faces and blurs the background behind a speaker. You have to be an Office 365 commercial customer to get this, though. If you use Teams through one of Microsoft’s recently launched free accounts, you’re out of luck.

While background blur is nice (or at least we have to assume it will be because we haven’t been able to try it yet), the more useful new feature in Teams is intelligent recordings. Teams can now automatically generate captions and provide time-coded transcripts for the replays. This feature is coming to Office 365 commercial customers now.

Microsoft first demoed these new transcription capabilities at its Build developer conference earlier this year. In that demo, the transcription service was able to distinguish between speakers and create a real-time transcript of the meeting.

If you want to create live streams and on-demand video for a wider audience inside your company, Teams is also getting that capability next month, together with Microsoft Stream and Yammer (which seems to be lingering in the shadow of Teams these days).

more Microsoft Ignite 2018 coverage


By Frederic Lardinois

Microsoft commits to fixing custom apps broken by Windows 10 upgrades

Microsoft wants to make life easier for enterprise customers. Starting today, it is committing to fix any custom applications that may break as a result of updates to Windows 10 or the Office 365 product suite.

Most large companies have a series of custom applications that play a crucial role inside their organizations. When you update Windows and Office 365, Murphy’s Law of updates says one or more of those applications is going to break.

Up until this announcement when that inevitably happened, it was entirely the problem of the customer. Microsoft has taken a huge step today by promising to help companies understand which applications will likely break when you install updates, and working to help fix them if it ultimately happens anyway.

One of the reasons the company can afford to be so generous is they have data that suggests the vast majority of applications won’t break when customers move from Windows 7 to Windows 10. “Using millions of data points from customer diagnostic data and the Windows Insider validation process, we’ve found that 99 percent of apps are compatible with new Windows updates,” Microsoft’s Jared Spataro wrote in a blog post announcing these programs.

To that end, they have a new tool called Desktop Deployment Analytics, which creates a map of your applications and predicts using artificial intelligence which of them are most likely to have problems with the update.

“You now have the ability with the cloud to have intelligence in how you manage these end points and get smart recommendations around how you deploy Windows,” Spataro, who is corporate vice president of Microsoft 365, told TechCrunch.

Even with that kind of intelligence-driven preventive approach, things still break, and that’s where the next program, Desktop App Assure, comes into play. It’s a service designed to address any application compatibility issues with Windows 10 and Office 365 ProPlus. In fact, Microsoft has promised to assign an engineer to a company to fix anything that breaks, even if it’s unique to a particular organization.

That’s quite a commitment, and Spataro recognizes that there will be plenty of skeptics where this program in particular is concerned. He says that it’s up to Microsoft to deliver what it’s promised.

Over the years, organizations have spent countless resources getting applications to work after Windows updates, sometimes leaving older versions in place for years to avoid incompatibility problems. These programs theoretically completely remove that pain point from the equation, placing the burden to fix the applications squarely on Microsoft.

“We will look to make changes in Windows or Office before we ask you to make changes in your custom application,” Spataro says, but if that doesn’t solve it, they have committed to helping you fix it.

Finally, the company heard a lot of complaints from customers when they announced they were ending extended support for Windows 7 in 2020. Spataro said Microsoft listened to its customers, and has now extended paid support until 2024, letting companies change at their own pace. Theoretically, however, if they can assure customers that updating won’t break things, and they will commit to fixing them if that happens, it should help move customers to Windows 10, which appears to be the company’s goal here.

They also made changes to the standard support and update cadence for Windows 10 and Office 365:

All of these programs appear to be a major shift in how Microsoft has traditionally done business, showing a much stronger commitment to servicing the requirements of enterprise customers, while shifting the cost of fixing custom applications from the customer to Microsoft when updates to its core products cause issues. But they have done so knowing that they can help prevent a lot of those incompatibility problems before they happen, making it easier to commit to this type of program.


By Ron Miller

Microsoft will soon automatically transcribe video files in OneDrive for Office 365 subscribers

Microsoft today announced a couple of AI-centric updates for OneDrive and SharePoint users with an Office 365 subscription that bring more of the company’s machine learning smarts to its file storage services.

All of these features will launch at some point later this year. With the company’s Ignite conference in Orlando coming up next month, it’s probably a fair guess that we’ll see some of these updates make a reappearance there.

The highlight of these announcements is that starting later this year, both services will get automated transcription services for video and audio files. While video is great, it’s virtually impossible to find any information in these files without spending a lot of time. And once you’ve found it, you still have to transcribe it. Microsoft says this new service will handle the transcription automatically and then display the transcript as you’re watching the video. The service can handle over 320 file types, so chances are it’ll work with your files, too.

Other updates the company today announced include a new file view for OneDrive and Office.com that will recommend files to you by looking at what you’ve been working on lately across the Microsoft 365 and making an educated guess as to what you’ll likely want to work on now. Microsoft will also soon use a similar set of algorithms to prompt you to share files with your colleagues after you’ve just presented them in a meeting with PowerPoint, for example.

Power users will also soon see access statistics for any file in OneDrive and SharePoint.


By Frederic Lardinois

Microsoft wants to make you a better team player by nudging you into submission

Microsoft announced a number of new tools for its MyAnalytics tool for Office 365 users today that are geared toward giving employees more data about how they work, as well as ways to improve how teams work together. In today’s businesses, everybody has to be a team player, after all, and if you want to bring technology to bear on this, you first need data — and once you have data, you can go into full-on analytics mode and maybe even throw in a smidge of machine learning, too.

So today, Microsoft is launching two new products: Workplace Analytics and MyAnalytics nudges. Yes, Office 365 will now nudge you to be a better team player. “Building better teams starts with transparent, data-driven dialog—but no one is perfect and sticking to good collaboration habits can be challenging in a fast-paced job,” Microsoft’s Natalie McCullough and Noelle Beaujon, using language only an MBA could love, write in today’s announcement.

I’m not sure what exactly that means or whether I have good collaboration habits or not, but in practice, Office 365 can now nudge you when you need more focus time as your calendar fills up, for example. You can block off those times without leaving your Inbox (or, I guess, you could always ignore this and just set up a standing block of time every day where you don’t accept meetings and just do your job…). MyAnalytics can also now nudge you to delegate meetings to a co-worker when your schedule is busy (because your co-workers aren’t busy and will love you for putting more meetings on your calendar) and tell you to avoid after-hours emails as you draft them to co-workers so they don’t have to work after hours, too (that’s actually smart, but may not work well in every company).

With this new feature, Microsoft is also using some machine learning smarts, of course. MyAnalytics was already able to remind you of tasks you promised to co-workers over email, and now it’ll nudge you when you read new emails from those co-workers, too. Because the more you get nudged, the more likely you are to finish that annoying task you never intended to do but promised your co-worker you would do so he’d go away.

If you’re whole team needs some nudging, Microsoft will also allow the group to enroll in a change program and provide you with lots of data about how you are changing. And if that doesn’t work, you can always set up a few meetings to discuss what’s going wrong.

These new features will roll out this summer. Get ready to be nudged.


By Frederic Lardinois

In a Slack world, Microsoft bets on Teams and Yammer

The growth of Windows has slowed as Microsoft’s mobile platform goals have faded and the PC market matured. As a result, Microsoft has had to seek new revenue outside of its operating system.

In 2017, as part of that effort to grow, Microsoft announced a new subscription product called Microsoft 365, bringing together Windows, the company’s cloud-centered productivity suite Office 365 and enterprise tooling into a single package.

The introduction of Microsoft 365 presaged the company’s re-organization which, to quote CNBC, “rebuilt the company around the cloud instead of Windows.” This seems reasonable; if Windows isn’t going to return to growth, other services have to keep adding top line revenue. Microsoft’s evolution to a cloud-powered, services-focused company is therefore set to continue.

In the pursuit of new, non-Windows top line, Microsoft wagered that it could expand its “commercial cloud” revenue to a $20 billion run rate by the end of its fiscal 2018. It beat the goal, reaching the $20 billion mark far ahead of the calendar-equivalent date of mid-Summer of this year.

One of those products, Teams, is a component to Office 365 and part of what Microsoft CEO Satya Nadella called a “growth opportunity” that is “a lot bigger than anything [his company has] achieved.”

Today we’re going to explore Microsoft’s current actions in one part of the cloud productivity space through the lens of Teams.

Microsoft Teams

Microsoft’s Teams product is a communications tool often compared to Slack . TechCrunch, for example, recently called the software service “Microsoft’s Slack competitor.” ComputerWorld, in a news item earlier this year, wrote that “Microsoft turn[ed] up [the] heat on Slack” when it announced new Teams features.

It goes on and on, allowing us to comfortably hold up Microsoft Teams as Redmond’s answer to Slack, a company famous for its quick growth, impressive mind share and its independent status from any major tech company. That last fact remains true despite rumored acquisition interest from Microsoft itself, along with pretty much every big company in the sector you can name.

To see Microsoft invest in its own tool that competes with Slack isn’t surprising. There is a large market for the product, and Redmond is loath to let any rival service cut in on its productivity revenue.

Therefore, if there is a hot productivity tool in the market and Microsoft isn’t going to buy it, it might as well build one of its own. Unsurprisingly, the company has been hard at work doing just that.

Joining a big company when you are a comparatively small company can be arduous.

News that Teams could release a free version made headlines. Teams also picked up guest access in February, its introduction of Cortana integration made it into mainstream tech publications and this week Microsoft announced new “retention policies” for Teams.

All that and Microsoft bought Teams a friend this year in the form of Chalkup, a collaboration company focused on the education world.

In short, Teams is adding new features while building its org chart and expanding access. All good things, certainly. However, it was not too long ago Microsoft spent quite a lot of money to buy a different, distinct collaboration tool. What happened to it?

Yammer

Microsoft bought Yammer in 2012 for $1.2 billion, building out what TechCrunch called, at the time, its “Social Enterprise Strategy.” And while the Yammer-Microsoft deal was “great news” for the company and its investors, it also marked the beginning of the “tough part” for the newly acquired startup.

Joining a big company when you are a comparatively small company can be arduous. And if you do so when the larger company is undergoing a massive change in leadership (Microsoft hired a new CEO two years after the Yammer deal) and a business model change-up (Microsoft bought Nokia in 2014, also two years after the Yammer deal, before closing that strategic idea out years later), it’s probably even harder to integrate.

Externally, that difficulty showed. Following the Microsoft deal, Yammer search volume grew before stagnating and later slipping. The product was eventually switched on for free for Office 365 customers in early 2016, four years after it was purchased. Office 365 itself launched a half-decade before, making the moment a bit long in the works.

But all that is the past, and, notably, Microsoft is putting more emphasis on Yammer today than it has in recent years. That may feel odd, given what we just went over concerning Teams.

To dig into that, Crunchbase News got Microsoft’s Seth Patton on the phone, who explained the company’s thinking. According to the 15-year company veteran who now works on Office 365, Microsoft has two separate views for Teams and Yammer. Teams is built for what Patton calls inner-loop communication: stuff for teams, smaller companies and the like; Yammer, in contrast, is better for outer-loop communication: less tactical decisions and more company-wide communications.

The split between Slack and Teams products and the Yammers and Convos of the world isn’t hokum or mere corporate-speak. I’ve worked in newsrooms that used the mix of tools to allow for simple direct messaging between individuals (Slack) and team-wide threaded communications (Yammer). It takes a little getting used to, but it can flow well if you need that level of inter-party discussion.

Even more interesting than the fact that Yammer is not dead is that Microsoft is actively investing in it. According to Patton, Microsoft’s chiefs “doubled down” on Yammer while Teams was being brought into the market in late 2016. This gave Yammer about a year of redoubled investment and attention.

Taking all that together, Microsoft is investing in two communications products at the same time, both of which are baked into its productivity suite. So why the huge push now?

Slack: Software’s favorite rocket ship

You are no doubt familiar with Slack’s growth arc. It’s been a nearly chronic narrative in tech for the past few years. And I don’t mean that in a pejorative sense. (I’m as guilty as anyone else.)

But, in case you have a life, here are some highlights: Slack reached ARR of $50 million in December of 2015. In October of 2016, Slack hit the $100 million ARR mark. Then the company bested $200 million last September. That’s darn quick, and investors took notice, showering the company with cash and ever-rising valuations.

One way to get acquired, after all, is to stick out by worrying the biggest companies in the market through growth.

Fueling Slack’s continued growth is a push into the realm of bigger companies. The firm launched Slack Enterprise Grid last January, bringing enterprise-grade management tools to Slack’s product. With Enterprise Grid, Slack can keep going after bigger accounts. (To that point, IBM has more than 200,000 active users on Slack that use Enterprise Grid.)

That quick growth has made Slack an acquisition target. One way to get acquired, after all, is to stick out by worrying the biggest companies in the market through growth. It’s just hard as heck to do, as incumbent revenue numbers are so large that, well, you have to grow fast to become interesting.

An even bigger scrap

As we know, Slack has rebuffed acquisition offers. As a result, we’re seeing Microsoft, the dominant player in the world of productivity, attempt to slow down Slack in an effort to not lose future users and future dollars. Hell, even Google is in on the race. Its Slack competitor launched for early users in February. Facebook is also tinkering around the edges. It’s fun to watch.

But productivity is Microsoft’s cash cow. For Google, it’s a big side project, but nothing compared to its advertising revenue. That puts Microsoft and Slack more up against one another in the enterprise chat fight.

(In mid-March, Microsoft announced that 200,000 organizations now use Teams, up from 125,000 in September of 2017. That’s 60 percent growth in a half-year or so — a quick growth pace, too.)

What we’ll learn over the next few years is if Microsoft’s enormous enterprise channel can be leveraged enough to slow Slack’s growth, or if Slack’s momentum can actually capture a piece of the productivity market and hold onto it.

It’s a startup against a platform company, a classic enough battle. But with big tech bigger, richer and more powerful than ever, it’s a more relevant business case than we might think at first blush. More when one draws blood or Slack goes public.