Slack plans for growth despite competition from Microsoft Teams
Slack plans to draw in more users to better compete with Microsoft teams. While in the past the marketing budget accounted for 46% of the company’s revenue, Slack plans to outdo themselves by spending over 50% of the collaborative app’s revenue.
“we’re seeing a generational shift in how we collaborate at work. People are moving away from email and into channels, away from legacy suites of badly connected products and onto a new customizable platform that can more easily connect the tools they use to work,” said Brian Elliott, VP & General Manager of Platform
While Slack contends that Microsoft’s Teams is a different service and not a competitor, Microsoft has made it clear they don’t have warm feelings towards slack. We reported recently that, Microsoft halted their employee’s use of the free version of Slack citing security concerns as the cause.
Since Slack has gone public, the company has continued to grow and acquire more users and has big plans for the future of the platform.
Teams boasts a massive 20 million active users a day, though Slack is shy of that number by 8 million. CEO Steward Butterfield notes that while the majority of Slack’s best customers utilize programs from Microsoft’s Office 365 suite they are still opting to use slack instead of Teams.
Butterfield has gone on to add that so many Office 365 users have come to Slack because of Slack’s integration of Microsoft tools and messaging features.
Microsoft is a much larger company than Slack, and it’s very important for them to stake their claim in the tech industry. Directing more funds towards advertising efforts makes sense. Due to the release of Teams the company’s stock has suffered an additional 8.4% drop.
Despite the competition, Slack has reported growth in the most recent quarter. During the last quarter, the company brought in 168.7 million.