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March 10, 2025
Modern Working
WRITTEN BY
Rob Gowman

Microsoft Teams: Understanding What It Is and Why It Matters

Suppose your company has recently become open to employing remote or hybrid workers. While exploring ways to effectively manage the virtual workspace, you come across Microsoft Teams. Before joining a new platform, it’s essential to understand its mechanics, environment, and significance - what sets it apart from its rivals.

Microsoft Teams is one of the most frequently used team collaboration tools, with approximately 1.9 million organisations using it in the UK. But why is it trusted by so many? In this guide, we'll provide extensive information on Microsoft Teams’ distinguishing features and its unique contribution to the world of team collaboration.

What Is Microsoft Teams?

Initially launched in 2017, Microsoft Teams is a Microsoft-owned collaboration tool that offers workspace chat, video and audio conferencing, cloud-based file storage, and integration with both Microsoft and third-party business apps. The application replaced Skype for Business and Microsoft Classroom, becoming Microsoft’s primary collaboration and business messaging tool. By 2023, it had garnered over 300 million monthly users. 

With Microsoft set to discontinue Skype in May 2025 in favour of Teams, the platform is expected to gain even more users. Microsoft Teams is available on Windows, macOS, iOS, Linux, Android, and iPadOS as part of the Microsoft 365 product family.

Features of Microsoft Teams

Although the available features may vary with the plans, Microsoft Teams supports the following:

Chats

Teams users can communicate in persistent chats with one or more participants. The platform allows the sharing of text messages, stickers, emojis, gifs, files, and links. There's also a “chat with yourself” feature where users can create, forward, and store messages and files in a private chat tab.

Channels

Microsoft Teams features dedicated spaces, known as channels, where members can collaborate on specific topics, projects, or tasks. Channels help organise discussions, files, and apps related to a particular subject. Organisations can create standard channels, private channels, and shared channels on Teams.

Teams

Teams are workspaces within Microsoft Teams that allow members to collaborate on projects, share files, and communicate efficiently. They consist of multiple channels and are often created based on specific business needs or projects.

Group Conversations

While channels allow multiple users to discuss a particular subject, team members can join a private group chat where conversations are not tied to a specific topic.

Meetings

Perhaps the most celebrated feature of Teams, Microsoft Teams offer high-quality video and conferencing tools for hosting virtual meetings. Users can schedule, join, or record meetings. Up to 1,000 interactive participants can join a meeting, with up to 10,000 participants in view-only mode.

Teams meetings come with the following features:

  • Screen sharing: Participants can share their screen content during Teams meetings.
  • Live captions in various languages (depending on the plan)
  • Meeting transcripts for reference
  • Breakout rooms: This feature allows meeting hosts to split participants into smaller groups for focused discussions.
  • Front Row: Teams’ Front Row layout places the speaker or speaker's content on the centre of the screen, with remote attendees displayed in a row at the bottom. This feature enhances engagement and fosters a stronger connection between in-person and remote meeting participants.
  • Background effects to enhance privacy.

Telephone Replacement (Teams Phone)

To facilitate seamless communication in remote and hybrid work environments, Microsoft Teams offers Teams Phone (formerly Microsoft Phone System). Teams Phone allows organisations to make and receive calls directly from Teams using VoIP (Voice over Internet Protocol) or Public Switched Telephone Network (PSTN) integration. 

Teams Phone supports the following:

  • Voicemail and call forwarding
  • Auto-attendants and call queues
  • Integration with Microsoft 365 contacts

Here's a comprehensive comparison between Direct Routing and Operator Connect on Teams.

Teams for Education

Teams for Education is a specialised version of Microsoft Teams designed for schools, colleges, and universities.

It provides the following:

  • Classroom organisation with separate channels for subjects or subject groups.
  • Assignments and grading tools for teachers.
  • Integration with learning management systems (LMS), including Moodle and Blackboard.
  • Student collaboration spaces for projects and discussions.

Protocols

To ensure secure and seamless collaboration, Teams employs various communication protocols.

These protocols include:

  • Session Initiation Protocol (SIP)- For voice and video calls
  • Transparent Layer Security (TLS)- For encrypted communication
  • Real-Time Transport Protocol (RTP)- For audio and video streaming
  •  Microsoft Graph APIs- For automations and integrations

Integrations

Microsoft Teams syncs smoothly with other Microsoft 365 apps and third-party tools to enhance productivity. 

These include:

  • Microsoft apps: Outlook, OneDrive, SharePoint, Power BI, and Planner
  • Third-party apps: Trello, Slack, Zoom, Salesforce and more
  • Custom integrations: Teams supports custom apps created with Power Automate or Microsoft Graph API.

Why Is Microsoft Teams Essential to Businesses and Organisations?

Microsoft Teams enhances communication, collaboration, and productivity in remote and hybrid work environments.

Here's how it helps businesses and organisations:

Unified Communication

Microsoft Teams combines chat, video conferencing, and voice calls into a single platform, reducing reliance on multiple communication tools.

Enhanced Collaboration

Teams enables real-time document sharing and co-editing with Microsoft 365 integration. It also organises workspaces with Teams and channels for structured discussions. Additionally, teams members can store and share files via OneDrive and SharePoint.

Efficient Meetings and Remote Work

Teams supports remote work through its high-quality video conferencing. It also facilitates accessibility with its meeting recording, live captions, and transcription features. Similarly, breakout rooms and the Front Row layout enhance engagement during meetings.

Integration with Business Tools

Teams allows companies to plug in other Microsoft-owned tools and third-party business apps to maximise productivity.

It Is Secure and Compliant

To ensure ironclad data security, Microsoft Teams provides end-to-end encryption and multi-factor authentication (MFA). The platform also complies with GDPR, HIPAA, and ISO 27001 standards.

Cost-effective Telephony Solution

In a world of remote and hybrid work, Teams Phone has replaced traditional phone systems with VoIP and PSTN integration. Features like call forwarding, auto-attendants, and voicemail on Teams have also helped reduce phone costs.

Scalability for Businesses of all Sizes

Teams works well for small startups to large enterprises. The platform can also be customised to fit industry-specific needs, e.g, Teams for Education and Teams for Healthcare.

Bottom Line

Virtual collaboration tool are crucial in remote and hybrid work environments, academic instructions, and the health sector. In this light, Microsoft Teams is one of the best options for organisations, as it combines communication, virtual meetings, project collaboration, and data storage into a single platform while also integrating well with other business tools.

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