IBM prefers Slack over Microsoft Teams for its 350,000 employees

Daniel Fowler
February 14, 2020

IBM is now deploying workplace app Slack to all of its 350,000 employees.

At the time, that was 8 million more daily active users than Slack, which had reported in October that 12 million people were on the platform every day.

"From the filing, Slack stated" IBM continues to be Slack's biggest customer for many years and has enlarged its use of Slack during that moment". "Going wall to wall at IBM - it's basically the maximum available scale, so we now know that it will work for literally Slack largest organizations in the world", Slack said CEO Stewart Butterfield in an interview with Business Insider.

A new report shows that IBM prefers Slack for internal communication. 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.

Furthermore, the company has yet to clarify which portion of the current 165,000 or future total 350,000 employees will be using a free or paid tier of the service.

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The deal with IBM builds on a previous relationship between the two companies.

Slack did not explicitly confirm or deny that it had reached a new deal but said in a regulatory filing https://www.sec.gov/Archives/edgar/data/1764925/000176492520000131/a8-kxitem701.htm that IBM had been and continued to be its largest customer.

Slack and Microsoft Teams have been at loggerheads not only because of competition but also in open statements made by them.

"(The employees) started explaining what they were doing and how they were using Slack to communicate. IBM was one of the first users of Slack's Enterprise Grid and had more than 165,000 users by past year. Whatever the outcome, it is certain that IBM's decision gave Slack great power in the Slack-Microsoft struggle.

The new development comes as a huge win for Slack whose stock fell about 11% in November 2019.

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