Microsoft claims Teams is its fastest-growing app ever after hitting 20 million daily active users and overtaking its arch rival Slack.
The success of Microsoft's workplace messaging and collaboration app has shaken Slack investors, with Slack's share price dropping 8.35 per cent in a day.
And market watchers believe it's likely Teams will enjoy even further growth due to its integration with Office 365.
Let me re-iterate: Slack will have a very hard time in large enterprises and should retreat now to small and medium businesses. Microsoft Teams caught up and in many ways, surpassed Slack for enterprises. Next, keep your eye on Zoom. $WORK $ZM https://t.co/SU2KUOFqJV pic.twitter.com/QEQcTjFpVh— Patrick Moorhead not at #DF19 (@PatrickMoorhead) November 19, 2019
Hunter Willis, product marketing manager at AvePoint - a US Microsoft partner - also pointed to Office 365's global reach of 200 million commercial users.
"From this perspective, it's hard to see how any enterprise productivity software has stronger growth potential in 2020," he said.
"Most of the organisations we talk to are currently in the pilot phase. They have deployed it among the IT team or maybe 25 per cent of the company and are preparing their organisation-wide rollout this year as they transition from Skype For Business."
Teams' rapid growth is being driven by Microsoft's decision in July to announce it will bring Skype for Business Online to a close on 31 July 2021.
Instead, it pushed customers onto its Microsoft Teams unified comms system, after two years of development.
Before July, Slack had been making further inroads into the enterprise space, unveiling a raft of new features, including Shared Channels beta, enabling enterprise customers to collaborate with customers, vendors, and any other external partners.
However, since its summer launch, Teams has grown 54 per cent in just five months.
In the latest public figures for Slack usage, published in October, Slack had more than 12 million daily users, a 37 per cent increase year on year.
The line from Slack is that its users are more "engaged".
In a blog post, Slack said that its paid customers spend more than nine hours per workday connected to its service, including spending about 90 minutes per workday actively using Slack.
"Work is fuelled by true engagement," it read. "The number of engaged and active people who are relying on Slack continues to grow rapidly."
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