IBM adopts 'Slack' for its 3,50,000 employees

IBM adopts 'Slack' for its 3,50,000 employees

Accordingly, Slack beat its major rival, Microsoft Teams, to further expand its partnership with the single biggest customer - IBM. However, Slack has scored a major new contract and interestingly it is with a long-time Microsoft partner.

The rivalry between the two has been somewhat strained recently, with Microsoft claiming Slack does not have the "breadth and depth that is really needed to rediscover what it looked like to work together". Their internal teams were already working on it back in 2014 and now, they have materialized the plan of moving to slack for communication entirely.

Slack did not explicitly confirm or deny that it had reached a new deal but said in a regulatory filing that IBM had been and continued to be its largest customer. And the rollout to all employees locks that in. And Konrad Lagarde, Director of Productivity and Developer Tooling at IBM has been in charge of the transition. understands that this comes as the best trading session since Slack's first day as a public company on June 20, 2019. Business Insider was first to report the developments. It's always worth remembering that Slack vs. Microsoft is a very much a David vs. Goliath situation.

Bhatia writes that once IBM fully deploy Slack across the company, the income Slack from the paid subscription will be about $30 million annually or just over 4% of its total annual income.

Why it matters: Microsoft has been increasingly going after Slack with its Teams product, which it bundles with Office.

IBM's decision comes just weeks after Microsoft has begun to boost TV ad for Tim. Microsoft has caught up and overtaken Slack over the previous year, which led to the team being actively used by 20 million people every day compared with 12 million Slack. They were worth 15.4% more than yesterday, and then, all of a sudden this fine afternoon, trading of Slack's equity was halted, pending news.



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