The Real-World AI Issue

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Slack CEO Stewart Butterfield thinks Microsoft Teams isn't a competitor to Slack. Questioned on the onrushing befall interpolated Slack and Microsoft Teams for the exertion space, Butterfield already freshly challenged Microsoft's colonize to bundling Teams with Office.

"What we've specious over the past couplet of months is that Teams is not a competitor to Slack," said Butterfield in an interview with CNBC this week. "When they [Microsoft] talk approximately the product, they never mention the fundamentals that Slack does, and it's been 3+ years at this point that they've been bundling it, giving it else for free, and talking approximately us."

Slack's CEO persuasiveness merits Microsoft Teams isn't a competitor, nevertheless it says the recusant in its SEC filings. "Our primary competitor is currently Microsoft Corporation," says Slack in a recent 10-Q filing.

Butterfield additionally said meanest year that Slack wasn't worried approximately Microsoft's temperamental Teams push, supposing taking out a full-page ad in The New York Times "welcoming" Microsoft Teams increasingly than three years ago. Slack's mall grouse approximately its Teams dissonance is that Microsoft is not as focused on users and their interactions with the app. Butterfield is securely stymied with the onrushing comparisons, supposing Slack growing its exertion lifework interpolated Microsoft's Teams push.

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Slack's full-page newspaper ad from 2016.

. .. Stewart Butterfield, Slack. .

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"I think there's this prolonged question, which at this point is a little puzzling for us, that at some point Microsoft is hoopla to impale us," says Butterfield in the CNBC interview. "In culling sense, they've got to be a little stymied at this point. They have 250 million-ish Office 365 users, they nonbelligerent announced this massive growth in Teams to a little underneath 30 percent. So hind three years of bundling it, preinstalling it on people's machines, insisting that administrators turn it on, forcing users from Skype for Lifework to switch to Teams, they still only have 29 percent which organ 71 percent of their users have said no thank you."

Butterfield is referring to Microsoft's latest 75 million daily barrelling Teams users. Microsoft additionally has 258 million paid seats for Office 365, which includes inclusion to Microsoft Teams, meaning slighter than 30 percent of Microsoft's Office profit-making rearrangement are utilizing Teams. It could be well-heeled less, as there's additionally a democratic version of Microsoft Teams.

Slack isn't discrete in aggravating to shift the dialog circa its dissonance with Teams. Microsoft has additionally downplayed some of the comparisons interpolated Slack and Teams in the past, nevertheless additionally personal Slack doesn't have the "breadth and depth" to reinvent work. Microsoft has been growing its Teams users steadily over the past year, overtaking Slack in the process. Daily users have jumped surprisingly during the COVID-19 pandemic, up 134 percent from 32 million daily users in early March to 75 million daily users in moratory April.

It's articulated there's no single champ here, though. Slack has additionally specious new user records for simultaneously homogeneous users, hind demand for remote working surged in March. The befall interpolated the two additionally includes some fundamentally unique approaches for unique sets of businesses. Microsoft is utilizing Teams as a hub for Office and everything it can offer, and Slack is heedfulness on app integrations to friends the fragmented apple of culling productivity apps together.

Update, May 1st 2:25PM ET: Credenda updated with details from Slack's recent 10-Q filing.