In 2021, Slack merged with Salesforce in a $28 billion deal to enhance its competitiveness against Microsoft. Co-founder Stewart Butterfield had criticized Microsoft for bundling Teams with Office 365, calling it anti-competitive. Slack even filed a complaint against Microsoft with the European Union in 2020.
Recently, Microsoft announced the future unbundling of Teams from Office 365, a move that Butterfield seemed less concerned about after becoming part of Salesforce. Microsoft reported over 320 million users worldwide compared to Slack’s 32 million users, indicating Microsoft’s lead in the market.
Analysts believe Microsoft’s unbundling strategy could help increase Teams’ adoption in non-Microsoft companies while maintaining a competitive edge against Slack in the standalone market battle.
The market has matured, and while Butterfield’s concerns about Microsoft may have been valid, the regulatory outcome and market dynamics may have favored Microsoft’s bundling strategy in the end.
