Amazon & Slack Against Microsoft Teams

Slack has now become Amazon’s favourite acquisition target.

Source: Tech Leader

Context

“Strategically partnering with AWS allows both companies to scale to meet demand and deliver enterprise-grade offerings to our customers. By integrating AWS services with Slack’s channel-based messaging platform, we’re helping teams easily and seamlessly manage their cloud infrastructure projects and launch cloud-based services without ever leaving Slack.”
Stewart Butterfield, Co-founder, CEO of Slack

What does it mean?

Additionally, The partnership also integrates AWS Key Management Service with Slack Enterprise Key Management (EKM) for encryption key management, with adoption AWS’s machine-learning chatbot service and direct integration with AWS AppFlow to enable secure transfer of data between Slack and Amazon S3 storage. Which mean users are allowed to revoke access on a granular level and data are managed in a much secured level.

Slack & Amazon Relationship

Throughout the past 3 years, Slack has chosen AWS as its preferred storage provider and even resides its chat application in AWS. The partnership agreement takes that to a whole new level whereas Slack’s is now utilizing AWS as their technology platform foundation, Slack also refers Amazon as their preferred partner, implying an increased reliance onto AWS services into their operation and development.

The war between Amazon and Microsoft is tensed and have primarily taken place in the cloud industry. Microsoft’s Azure and Amazon’s AWS in earlier January was fighting for the government $10 billion Pentagon JEDI cloud contract, which Microsoft have won eventually. Amazon has further filed claims onto the National Defensive Ministry to put the contract on hold.

Another Reason for Merger & Acquisition

Amazon Web Services (AWS) is the dominant player in the cloud infrastructure industry, the cloud infrastructure industry is complement to a variety of digital sectors including media, telecommunication, government, education, collaboration tools etc. When Slack continues advancing its capability to providing better services to grow the business, Slack is actually increasing reliance with AWS’s infrastructure.

Given Slack operates in the cloud infrastructure as AWS, owns a growing pool of paid-customers, strategic relationship with Amazon. It incentivizes Amazon to acquire the company to expand Amazon Chime’s services against Microsoft Team in the future over any other companies.

Future of WORK

During the Coronavirus lockdowns, WFH transformation have created billions of value for video-conferencing tools and new competitors from tech giants. It is a bad for WORK as there has not been any major breakthroughs since the business model is established. In addition to factors like reliance onto AWS, over-optimism and rising competitions, Slack is going to be taken advantage from Amazon Web Services (AWS) if Slack was not able to better differentiate itself and complete in the market.

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