"As CIOs tightened operations, they were left to choose between the app that employees adopted on their own in smaller pockets or the messaging product that comes bundled with their existing, familiar, infoSecurity-approved Microsoft Office suite," said former Salesforce product exec and current CEO of sales startup Tact.ai, Chuck Ganapathi. (Earlier this year Slack actually filed an antitrust complaint in the EU on this issue, calling Microsoft's practice of tying in and force-installing Teams anticompetitive - the investigation is still on-going.)
As companies were forced to rapidly adjust to remote work during the pandemic, Teams was an easier choice, even if workers may have favored Slack.
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Part of why Microsoft Teams presents such a formidable challenger to Slack is because it's bundled in for free with the company's other productivity tools, like Office and Outlook. "It was clearly getting harder for Slack to compete on its own merit," she told Business Insider, "But the integration with Salesforce services does not solve all the problems when it comes to collaboration." "Salesforce should have waited six months to a year," Sudhakar said, "And they could have gotten Slack for cheaper."Ĭreative Strategies analyst Carolina Milanesi cautions that even though the purchase helps Slack, it won't be a panacea for all its growth issues. One longtime exec in the industry - former ServiceNow VP and current CEO of AI startup Aisera, Muddu Sudhakar - suggested that Slack would likely have suffered further from the competition as time went on: Slack, by contrast, has chosen not to disclose its daily active users numbers since October 2019. Microsoft Teams, meanwhile, boasts 115 million daily active users as of October - up from the 75 million it announced in late April. This story is available exclusively to InsiderĪnd start reading now. Then, in the most recent quarter, Slack's revenue growth slowed to 39% year-over-year while Zoom's sped up to 367%. In Slack's September quarterly report it posted middling revenue growth of 49% year-over-year for $215.9 million in the quarter, while Zoom reported a 355% surge, for $663.5 million in revenue. While the pandemic-forced shift to remote work has been a boon for companies that provide communication software, Slack has not experienced the blockbuster revenue growth of Zoom. And while analysts believe that the sale makes the two companies a stronger rival to Microsoft, it won't instantly improve all of Slack's struggles. Visit Business Insider's homepage for more stories.īefore Slack fetched a whopping $27.7 billion price tag from Salesforce, the workplace messaging app was struggling to keep pace with competitors Zoom and Microsoft Teams.You can also contact Business Insider securely via SecureDrop.
Do you have insight to share? Contact reporter Ashley Stewart via encrypted messaging app Signal (+1-42) or email Contact Paayal Zaveri via email at or Signal at 92.Several were skeptical about how Salesforce would be able to monetize or bundle Slack.
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