Coronavirus could impact Slack's ability to compete with Microsoft - Business Insider

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Slack CEO Stewart Butterfield touted its customer wins against Microsoft Teams, but analysts worry the coronavirus crisis will hurt its ability to compete

Slack Technologies Inc. co-founder and CEO Stewart Butterfield poses outside the New York Stock Exchange during thew company's IPO in New York, U.S. June 20, 2019.Slack CEO Stewart Butterfield highlighted deals the company signed last quarter where customers chose it over Microsoft Teams, its chief competition in the work chat app market.

With Slack's ability to send salespeople out to close deals limited by the spread of coronavirus, and more of its customers working from home, analysts fear that the market may favor the incumbent — in this case, Microsoft, which has established relationships with most major companies around the world.Slack CEO Stewart Butterfield touted the company's customer wins against Microsoft's rival Teams chat app during a call with analysts after it reported earnings on Thursday.

"Slack scales elegantly for both end users and administrators. Slack's superior user experience and platform capabilities result in real engagement. And if you want to change the way people work together through software, people have to actually use the software to work together," he said. Analysts see that as another factor potentially working against Slack, putting more pressure on its competition with Teams going forward — especially given Microsoft's existing relationships with most major companies all over the world, making it that much harder for Slack to compete.

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