Slack scraps billings outlook; 50% jump in sales fails to impress investors

Marco Green
June 6, 2020

After claiming that Microsoft Teams is not a real competitor to Slack, Butterfield said last month that the success of Slack threatens Microsoft's entire Office 365 empire. AWS offers over 175 fully featured services for compute, storage, databases, networking, analytics, robotics, machine learning and artificial intelligence (AI), Internet of Things (IoT), mobile, security, hybrid, virtual and augmented reality (VR and AR), media, and application development, deployment, and management from 76 Availability Zones (AZs) within 24 geographic regions, with announced plans for nine more Availability Zones and three more AWS Regions in Indonesia, Japan, and Spain.

Amazon is also planning to roll out Slack to most of its employees as part of the deal in an enterprise-wide agreement.

Slack has partnered with Amazon to improve video and voice calling offerings, while providing its messaging technology to Amazon employees.

All of the integration points and Slack's embrace of Amazon were created to make the chat app a lot more appealing to enterprise clients. Slack has been steadily growing its enterprise business, despite Microsoft's big push with Teams recently. Up until today, Slack's biggest customer has been IBM, which is putting Slack to use for its 350,000 employees. Butterfield has complained that Microsoft is "obsessed" with killing Slack, but if anything, Butterfield is the one who seems obsessed with his competition.

"[It] was a phenomenal quarter for Slack, with the addition of 12,000 net new paid customers and 50 percent revenue growth year-over-year", said Slack CEO and co-founder Stewart Butterfield said in a prepared statement.

Slack will migrate capability of its video conferencing platform Slack Calls for all voice and video calling to Amazon Chime, Amazon Web Services' (AWS) communications service that lets users meet, chat, and place business calls.

Slack is partnering with Amazon to take on Microsoft, even Google to an extent. Slack has opted for partnerships and integrations with many different rival pc software and cloud providers, and hasn't always attempted to build those features in to its own app. Increasingly, I see customers wanting to use best-of-breed products that work together.

Slack's first-quarter revenue rose 50 per cent to $201.7 million from a year earlier, above analysts' average estimate of $188.1 million, according to IBES data from Refinitiv.

By integrating AWS services with Slack's channel-based messaging platform, "we're helping teams easily and seamlessly manage their cloud infrastructure projects and launch cloud-based services without ever leaving Slack", he added.

Other reports by Click Lancashire

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