MS takes on Slack with messaging system

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Microsoft CEO Satya Nadella.
Microsoft CEO Satya Nadella.

Microsoft yesterday launched Microsoft Teams, a messaging system for businesses, putting it in direct competition with fast-growing start-up Slack and Facebook's Workplace product.

The new software will be part of Microsoft's Office 365 services, a cloud-based software suite that has more than 85 million monthly active commercial users.

Slack, whose customers include CBS, BuzzFeed, universities and the US government, had over four million daily active users in October.

San Francisco-based Slack took out a full page ad in the New York Times yesterday, addressing the entry of Microsoft Teams.

"We're genuinely excited to have some competition," Slack said in the ad.

Microsoft said a preview of Teams will be available to Office 365 commercial customers with enterprise or business plans.

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