"Going wall to wall in IBM - it's basically the maximum scale that there is, so we now know that Slack will work for literally the largest organizations in the world", Business Insider quoted Slack CEO Stewart Butterfield recently.
Shares in Slack Technologies Inc. surged as high as 21% today after a report claimed that International Business Machines Corp. had picked the company to exclusively provide its 350,000 employees with workplace collaboration tools.
Slack may have bagged one of its biggest customers yet. IBM has over 3,50,000 employees and by choosing Slack for internal communication, it is a big win against Slack's competing platform Microsoft Teams.More news: United Kingdom finance minister Sajid Javid quits as PM Boris Johnson reshapes cabinet
The news instantly makes IBM Slack's biggest customer, and the cash infusion should go a long way to bringing the money-losing company closer to profitability.
Yes, but: The thing is, IBM was already Slack's largest customer and has been for a couple of years.
The deal with IBM builds on a previous relationship between the two companies. The company confirmed the platform has over 20 million Daily Active Users (DAUs). Slack was originally released in 2013 and Microsoft came up with Teams in 2017.More news: Lyft Grows Ridership, Beats Revenue Estimate In Q4, But Stock Drops
Afterwards, Slack released an SEC filing, that comprised the fact that IBM had been now among its own customers.
IBM used the Slack in small teams in 2014, and a partnership with Slack was concluded in 2016, but late a year ago, the company chose to implement it in all parts of the organization.
When Microsoft announced it had more than 20 million daily active users for Microsoft Teams back in November of a year ago, Slack's stock fell as much as 11%. I've been busy. But people talk about Slack on all of Twitter, so let me reach both of us.More news: Coronavirus infections surge on cruise ship in Japan
IBM's use of Slack began in 2014, with a group of 68 engineers and grew from there. Slack's shares shot higher, and the news engendered all sorts of headlines that now look a bit silly.