Microsoft Teams provides 2 different spaces to communicate with group of people:

  1. Using Chats tab and creating a group chat
  2. Using Teams tab and posting in a team channel


Here is a quick summary of the differences:


Group chatTeam channel
NotificationAll members of the group will get notified at each messageMembers are only notified if they are tagged
FormattingBasic text chat-style formattingExtended formatting, including flags (announcement, etc.)
Discussion structureInstant messaging structure
All messages are sent independently without any organisation.
Facebook structure
Separate topic of discussion will be dressed in separated posts. Answer to post will be made via comments.
Chat historyOptional when adding membersAlways shown to all members
File storageShared files are stored on each sharing employee OneDriveShared files are stored on a dedicated SharePoint team site
ApplicationsNo application support (except bots)Supports all application via tabs
PermissionsAnyone can create their own group chatTeam are created by IT, channels by team owner


Conclusion:

  • Channel for FYI message such as people as CC in an email
  • Channel for Actionable conversation to certain team members (using @name in a channel).
  • Chat to replace phone call or direct Skype message when you need quick answer from a limited group of colleagues. Use it wisely as it would create notification to every conversation members.