Slack CEO: Microsoft Groups isn’t a competitor to Slack

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Slack CEO Stewart Butterfield thinks Microsoft Groups isn’t a competitor to Slack. Puzzled at the ongoing struggle among Slack and Microsoft Teams for the enterprise house, Butterfield once again challenged Microsoft’s option to bundling Groups with Place Of Business.

“What we’ve noticed over the past couple of months is that Teams isn’t a competitor to Slack,” mentioned Butterfield in an interview with CNBC this week. “when they Microsoft talk about the product, they never point out the fundamentals that Slack does, and it’s been THREE+ years at this point that they’ve been bundling it, giving it away at no cost, and speaking about us.”

Butterfield stated final 12 months that Slack wasn’t worried approximately Microsoft’s competitive Groups push, in spite of eliminating a whole-page ad within the Big Apple Instances “welcoming” Microsoft Teams greater than three years in the past. Slack’s primary argument approximately its Teams pageant is that Microsoft is not as considering users and their interactions with the app. Butterfield is obviously frustrated with the ongoing comparisons, despite Slack rising its endeavor trade amid Microsoft’s Groups push.

Slack New York Times ad Slack’s full-web page newspaper ad from 2016. Stewart Butterfield, Slack

“I Think there’s this perpetual question, which at this aspect is a little complicated for us, that at a few aspect Microsoft is going to kill us,” says Butterfield within the CNBC interview. “In any other sense, they’ve got to be just a little pissed off at this element. they’ve 250 million-ish Place Of Work 365 users, they only introduced this large growth in Groups to a little bit under 30 %. So after 3 years of bundling it, preinstalling it on folks’s machines, insisting that directors flip it on, forcing users from Skype for Business to modify to groups, they nonetheless most effective have 29 % because of this SEVENTY ONE % of their users have mentioned no thanks.”

Butterfield is relating to Microsoft’s up to date 75 million daily lively Teams users. Microsoft additionally has 258 million paid seats for Place Of Job 365, which contains access to Microsoft Groups, meaning not up to 30 percent of Microsoft’s Place Of Business commercial customers are using Groups. it might be even much less, as there’s also a loose version of Microsoft Teams.

Slack isn’t on my own in seeking to shift the dialog round its pageant with Teams. Microsoft has additionally downplayed some of the comparisons among Slack and Teams within the prior, but also claimed Slack doesn’t have the “breadth and depth” to reinvent paintings. Microsoft has been growing its Teams users often over the past year, overtaking Slack within the process. Daily users have jumped considerably through the COVID-19 pandemic, up 134 % from 32 million day-to-day customers in early March to 75 million daily users in overdue April.

It’s clear there’s no single winner right here, regardless that. Slack has additionally observed new user information for simultaneously connected users, after call for for far off operating surged in March. The combat among the two also comprises a few fundamentally other strategies for various sets of companies. Microsoft is using Groups as a hub for Place Of Job and the whole thing it will possibly be offering, and Slack is that specialize in app integrations to deliver the fragmented global of other productiveness apps together.

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