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Slack CEO On Microsoft's Teams: 'Not A Competitor'

Microsoft Corporation (NASDAQ: MSFT) mentioned its Teams business dozens of times during its post-earnings conference call, but Slack Technologies Inc (NYSE: WORK) CEO Stewart Butterfield said on CNBC that it's "not a competitor."What Happened Microsoft mentioned Teams 42 times during its conference call, which was more than its cloud business Azure, CNBC's Deirdre Bosa said Thursday. When asked if Butterfield is worried about the growing competition, the Slack CEO said Microsoft has spent the better part of three years bundling its Teams business and giving it away for free.Over the same time period, Slack's client list rose, including those that generate at least $100,000 in revenue. As such, he said anyone assuming Microsoft will "kill" Slack is a "puzzling" proposition.In fact, Microsoft is likely "frustrated" that only 29% of its Office users make use of Teams, which implies the other 71% of users "have said no thank you," he said.Why It's Important The work-from-home phenomena as the result of the coronavirus may have accelerated the digital transformation and adoption of software for business productivity, the CEO said. One recent example is Slack adding ViacomCBS Inc (NASDAQ: VIAC) as a client at a time when the two entities are still working on the challenging process of merging together.At the same time, the two companies need to maintain effective communication to run day-to-day operations ranging from new hiring onboarding, employee performance reviews, among others.What's Next Slack announced in early April its intentions to raise 0 million in part because it doesn't "know how bad things are going to get" moving forward, Butterfield said. The raise is part of an "offensive" strategy to pursue potential acquisitions and take advantage of softness in the advertising market.Slack's stock closed at $26.69 per share.Related Links:Cramer Shares His Thoughts On Slack, Archer Daniels Midland And MoreWhy Josh Brown Still Likes SlackSee more from Benzinga * Instinet On CIO Spending: Switch To Cloud 'Already Evident' * Cramer Declares Microsoft The 'Best Tech Stock' To Buy Right Now * Mark Tepper Says 'DAWN' Is The New 'FANG'(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. Read More...

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Microsoft Corporation (NASDAQ: MSFT) mentioned its Teams business dozens of times during its post-earnings conference call, but Slack Technologies Inc (NYSE: WORK) CEO Stewart Butterfield said on CNBC that it’s "not a competitor."” data-reactid=”19″>Microsoft Corporation (NASDAQ: MSFT) mentioned its Teams business dozens of times during its post-earnings conference call, but Slack Technologies Inc (NYSE: WORK) CEO Stewart Butterfield said on CNBC that it’s “not a competitor.”

What Happened

Microsoft mentioned Teams 42 times during its conference call, which was more than its cloud business Azure, CNBC’s Deirdre Bosa said Thursday. When asked if Butterfield is worried about the growing competition, the Slack CEO said Microsoft has spent the better part of three years bundling its Teams business and giving it away for free.

Over the same time period, Slack’s client list rose, including those that generate at least $100,000 in revenue. As such, he said anyone assuming Microsoft will “kill” Slack is a “puzzling” proposition.

In fact, Microsoft is likely “frustrated” that only 29% of its Office users make use of Teams, which implies the other 71% of users “have said no thank you,” he said.

Why It’s Important

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The work-from-home phenomena as the result of the coronavirus may have accelerated the digital transformation and adoption of software for business productivity, the CEO said. One recent example is Slack adding ViacomCBS Inc (NASDAQ: VIAC) as a client at a time when the two entities are still working on the challenging process of merging together.” data-reactid=”25″>The work-from-home phenomena as the result of the coronavirus may have accelerated the digital transformation and adoption of software for business productivity, the CEO said. One recent example is Slack adding ViacomCBS Inc (NASDAQ: VIAC) as a client at a time when the two entities are still working on the challenging process of merging together.

At the same time, the two companies need to maintain effective communication to run day-to-day operations ranging from new hiring onboarding, employee performance reviews, among others.

What’s Next

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Slack announced in early April its intentions to raise 0 million in part because it doesn’t "know how bad things are going to get" moving forward, Butterfield said. The raise is part of an "offensive" strategy to pursue potential acquisitions and take advantage of softness in the advertising market.” data-reactid=”28″>Slack announced in early April its intentions to raise 0 million in part because it doesn’t “know how bad things are going to get” moving forward, Butterfield said. The raise is part of an “offensive” strategy to pursue potential acquisitions and take advantage of softness in the advertising market.

Slack’s stock closed at $26.69 per share.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Related Links:” data-reactid=”30″>Related Links:

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Cramer Shares His Thoughts On Slack, Archer Daniels Midland And More” data-reactid=”31″>Cramer Shares His Thoughts On Slack, Archer Daniels Midland And More

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Why Josh Brown Still Likes Slack” data-reactid=”32″>Why Josh Brown Still Likes Slack

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="See more from Benzinga” data-reactid=”33″>See more from Benzinga

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.” data-reactid=”38″>© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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