Teams, the workplace messaging app by Microsoft, crossed 20 million daily active users. The company reported on Tuesday that it has added 7 million daily active users since July 2019.
What is Microsoft Teams?
Microsoft Team is a group messaging app that is available as a part of paid Office365 business packages. However, it also has a free version. It creates a seamless workplace connectivity environment wherein users can chat, make calls, share files and even hold video conferences on the web. The app is used by SAP, General Electric and other large organizations.
It is the toughest competitor for Slack, a similar app that offers workplace chat and collaboration options. Slack Technologies revealed that they have 10 million daily active users by July 2019. Its major customers are Nordstrom Inc and Electronic Arts Inc. Now that Teams has double the users, Slack is facing the pressure to step up its game.
Does Slack need to cut some slack?
Soon after the news was announced, shares of Slack Technologies fell by 8.4% and traded at $21.18. Since the first day of trade in June, the company’s shares have fallen by 45%. Other competitors in the market are Workplace by Facebook and Webex Teams by Cisco. However, it is Slack and Teams fighting it out for market supremacy.
Slack said last month that its user base has grown to 12 million daily users who brought it close to Microsoft’s numbers. However, the latest figures shown by the tech giant leave no space for fierce competition. Slack suggests that it has a higher level of user engagement. On average, a paid customer spends about 9 hours on Slack, of which they spend 90 minutes using the app actively. It said that it depends more on engagement on its platform. It suggests that it sees over 5 billion weekly actions and 1 billion mobile actions.
Both companies have made flashy announcements about their products and tried to remain more relevant than their peers. However, a survey of IT professionals last year found that Teams was far ahead of Slack. It was second only to Skype for Business, which is also a Microsoft product. The company aims to make Teams its primary collaboration, chat and conferring application. It also has plans for adding deeper integrations of its personal assistant Cortana in its suite of apps. The company is barging in with several smart and bold moves. It is time for Slack to respond.