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Microsoft Teams is a massive platform play

Microsoft’s earnings were released this week, and I want to highlight two pieces of data.

Microsoft Teams is now at 115 million daily active users, up 50% from April.

On the earnings call, CEO Satya Nadella said “Teams is very exciting to us, because unlike anything else that we’ve done at the application layer, it’s literally like a shell.   It has a platform effect. It is meetings; it’s chat; it’s collaboration; as well as business process applications, integrated into Teams. That scaffolding richness literally makes it a very robust platform.

Microsoft has opened the platform up to third party apps, made it available to consumers, and is promising features like breakout rooms by year end. 

Why do we care?

I’ll be digging into platform effects in an upcoming editorial (so I’m teasing that here).    That said, you can see in real time Microsoft pivot to this new business platform.   They recently tied executive compensation to Teams at the top, and are moving quickly here.

The reference to the application layer should be telling for technical experts.  If this platform is the top of the network stack – a level above the traditional network layers – then the value is even higher.  Are you finding more value in the cabling, or the TCP/IP stack, or in the application layer?

And Nadella says this is unlike anything else?   Your best value is in this layer.  

Source: The Verge

Source: GeekWire