

”I want to emphasize the critical nature of true scalability for our enterprise customers,” Slack’s CEO Stewart Butterfield said in his earnings call remarks. Teams can have far more users if they operate in segments. Slack believes it’s the only tool that can serve major enterprise customers, since the size of organization-wide teams that can use Microsoft Teams tops out at 5,000 people. The data, which is forward-looking and includes only very large companies, runs counter to what Slack reported in its latest quarterly earnings, which highlighted 75 percent year-over-year growth, with 720 companies spending more than $100,000 a year on Slack. The general consensus among these big companies is that Slack may be a better product, but not so much better that it warrants paying for extra software on top of Microsoft Office, which they already require for business staples like Excel, Word, and PowerPoint. ETR data also showed that 13 percent of large companies plan to decrease their Slack spending next quarter compared with 1 percent that plan to do so on Teams.
