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I wonder if this means Hangouts is going to be deprecated soon.

I doubt it. Hangouts is a widely used tool in the Enterprise.

Not to mention no one is using Allo (based on anecdotes).

I installed it today out of curiosity - 15 contacts had it installed, and google play reports over 10 milion downloads - so someone must be using it.

That being said - i was perfectly fine with hangouts and hate fragmentation.

How many of those are active users though? According to this story from Jan, there are very few new downloads:

And some of those installs may be due to the spammy nagware scheme google uses to force people to install it so they can see messages:

I honestly have no idea, I installed it out of curiosity to see the web interface built in polymer. Ideally I'd just see google stick to hangouts.

To be fair, the primary reason that my wife and I don't use Allo is because it was never available on the web.

EDIT: And now after signing in, I realized that what I /really/ need is a desktop app...