Microsoft announced last week that more than 13 million people are using Microsoft Teams' chat software. This is a milestone that means the app has overtaken Slack. Although the news matters, active user numbers do not tell the whole story. Microsoft has used its popular Office 365 service to bundle Microsoft teams into its enterprise offerings, and the strategy is paying off.
Slack founder and CEO Stewart Butterfield has published a full-page ad in the New York Times More than two years ago he welcomed the Microsoft contest and showed that Slack is more than a bit in terms of the software giant was nervous. Now that Microsoft Slack has caught up with and surpassed the number of unedited users, Butterfield is not worried about the rapid growth of the Microsoft teams. "If it's based on the larger distribution [Office 365]I do not consider that a real threat," said Butterfield at a business conference on Monday, [CNBC reports.
Butterfield Rejected Microsoft's Goal and Likened It was the company's failed attempt with Bing to compete with Google's massive search engine dominance. "Dozens of billions of dollars in that [search engine] and I do not know what their market share is right now ̵
Slack has focused on the focused on human flaws of his software and making people love the app. It was an integral part of Slack's full-page ad and warned Microsoft against showing product love and "pursuing a radically different approach to supporting and partnering with customers to help them adapt to new and better work practices."
Microsoft did not care so much about this important part of Slack's general user interface. Microsoft teams, and you just need to have used both services to understand the differences. Microsoft teams are tightly tied to Microsoft's Office, Skype and cloud services, but the company is far behind Slack's third-party integrations and overall quality and polish. At the same time, Slack is lagging behind in video and audio calls, as Microsoft has deeply integrated Skype, making it much easier to hold and record meetings.
These small differences show that the two chat services are focused on different customers. Microsoft has a multitude of companies relying on its software and services, while Slack tries to penetrate the business, persuading many smaller businesses and start-ups to use its software. Slack's challenge is to pay people for their service, and Microsoft gets people to love the service. By now, Slack has more than 88,000 paid customers, but there are still more than 500,000 organizations using their free plan.
Microsoft has vigorously urged companies to use teams as part of its Office 365 subscription, see Monday. Microsoft is hosting its Inspire Partner Conference in Las Vegas this week and has invited thousands of attendees during the opening speech to download the Microsoft Teams mobile app for a free cup of Starbucks coffee. Microsoft has angered many partners with some license changes that have been quickly reversed and the company is offering a free "Microsoft Inspire Cloud Macchiato" coffee from Starbucks to apologize.
According to recent reports, Microsoft's sales teams are focused on getting employees to use teams over the next year. That means we will see more competition with Slack in the coming months .
Microsoft has now reached a point where it has overtaken the use of Slack, but that does not necessarily mean that people like to use teams or that they use it for hours every day. Microsoft has made the mistake of ignoring small businesses that originally did not use Office 365 with teams and offered a free version of the app only last year.
The key to Microsoft teams is now to win new and old Microsoft customers, rather than just running Microsoft Office. Otherwise, Slack will continue to connect with an upcoming generation of customers who do not care about Microsoft's offer and will gladly use G-Suite and Slack from Google to build the next generation of digital businesses.