The difference is that a team site typically manages the mass of information stored in lists and libraries, while a document workspace is a special site for collaborating on a single document or event.
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From what I can tell...nothing! A document in a different library is used to create a site where the document is copied. After creating the document workspace, you need to delete the original document otherwise you have 2 copies of the document. There is no relationship between them. I don't see a purpose other than MS gets to tell everyone there is another feature.
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