IBM chooses another Microsoft competitor for its employees; Slack instead of Teams

Marco Green
February 14, 2020

Accordingly, Slack beat its major rival, Microsoft Teams, to further expand its partnership with the single biggest customer - IBM.

It is now being reported that one of the world's biggest IT companies, IBM (International Business Machines) is adopting Slack as the prime collaboration software for its 3,50,000 strong workforce. Understandably, shares of Slack soared higher given the size of IBM and its pulling force. It has also been reported that the IBM deal will not be too big of a boost for Slack as the company already enjoyed a big chunk of its customer base from the tech giant which is stationed in NY.

IBM's board of directors elected Arvind Krishna as the company's new chief executive officer, he will take over the CEO role effective April 6, the company announced. This is a significant increase from the 165,000 users of IBM Slack, reported in 2019 after the launch of the company's services grid.

But in late 2019, IBM chose to go "all in" with Slack, making it the platform's largest customer to date. Today it has more than 300,000 users and offers slack to all employees.

Slack and Microsoft Teams have been at loggerheads not only because of competition but also in open statements made by them. While Teams was used by 20 million people, Slack was used by 12 million people.

The problem: IBM isn't a new Slack customer. A big company like IBM committing to Slack is obviously a very good look for the company, which has lately been facing a lot of pressure from Microsoft Teams.

IBM's use of Slack began in 2014, with a group of 68 engineers and grew from there.

Slack registered an 8-K Monday downplaying a news report which sent its inventory much greater than 15%.

The company's share price dropped 8.4% on November 19, after Microsoft said Teams had more than 20 million daily active users, much more than the 12 million users Slack reported in October.

Other reports by Click Lancashire

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