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Slack's IBM deal escalates the fight with Microsoft for big customers - Business Insider

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Slack's IBM deal is a signal to big corporate customers that the chat app is ready to go toe-to-toe with Microsoft, say analysts

simply click here to claim your deal and get access to all exclusive Business Insider PRIME content.While IBM has been a Slack customer for several years, IBM recently decided to deploy Slack to all 350,000 of its customers, the company told Business Insider on Monday.

For Slack to withstand the competition from Microsoft, many analysts believe it must make inroads with not just small and midsized business customers, but within the large enterprise corporations where Microsoft's long operating history and scale give it an edge. Alex Zukin, an analyst at RBC Capital Markets, echoed that sentiment and said this shows that Slack's product is "highly scalable."

Bhatia writes that once IBM has fully deployed Slack across the company, it could contribute about $30 million to Slack's annual recurring revenue or just over 4 percent of it's total annual recurring revenue.

 

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