It's a centralized version control system, similar in paradigm to Subversion. Team Foundation Version Control is one of the two native options for source control in TFS/Team Services. The upside here is that there's no infrastructure to maintain or software to upgrade - upgrades happen every 3 weeks, with no downtime. For example, Team Services does not have SharePoint integration or reporting. There are some capabilities in TFS on-prem that aren't available in Team Services and vice versa. It's the exact same codebase as TFS on-prem, except it's updated more frequently (every 3 weeks). Team Services is "TFS in the cloud", hosted and maintained by Microsoft in the Azure data centers. It's called Visual Studio Team Services these days. There is no such thing as "Team Foundation Service" anymore. TFS is an on-premise solution, consisting of (in a best-practices style setup) anywhere from 2 to 5 servers. Since then it's received 5 major versions (2008, 2010, 2012, 2013, and now 2015) with innumerable service packs, patches, and quarterly updates. It's been around for about 10 years now, introduced in 2005 as Visual Studio Team System. It also has SharePoint integration and a data warehouse to facilitate easy reporting. Timetracker team foundation manual#It contains capabilities for Agile project management, source control, continuous integration (build), continuous delivery (release), manual test case management, and more. Team Foundation Server is Microsoft's "all-in-one" Application Lifecycle Management solution.
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