Stratechery Teams OS and the Slack Social Network
Jul 7, 2020
The rivalry between Slack and Microsoft Teams takes center stage, revealing the shifting user base and how Teams' integration with Microsoft 365 fuels its success. Insights into Microsoft's advantage in smaller enterprises highlight the importance of product integration. Exploring the transformation of Microsoft's approach under Satya Nadella, the discussion focuses on user-centric solutions. Comparisons of features showcase Slack's challenges while emphasizing Slack Connect's capacity to enhance inter-company collaboration, positioning it uniquely in the enterprise networking realm.
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Slack's Open Letter
- Slack published a full-page open letter in the New York Times upon Microsoft's announcement of Teams.
- This letter congratulated Microsoft while also offering condescending advice.
Teams' User Growth
- Despite Slack's initial confidence, Teams surpassed Slack in daily active users within a few years.
- Silicon Valley often underestimates companies like Microsoft due to their focus on disrupting existing businesses.
Teams' Bundling Advantage
- Teams' success is partially attributed to its bundling with Microsoft 365, making it effectively free for many users.
- Microsoft's strategy wasn't to convert Slack users, but to prevent existing Microsoft customers from trying Slack.