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Microsoft (MSFT) Teams and Slack Integration to Aid User Base

Microsoft MSFT and Slack Technologies WORK are leaving no stone unturned to enhance their respective workspace software offerings. The companies are adding advanced capabilities to aid users to work from home efficiently amid the coronavirus-triggered lockdown.

Integration of Microsoft Teams with Slack is reportedly in process and expected to benefit the users to efficiently communicate as well as accelerate business processes in this crisis. However, it is not yet known when the integration tool will be available on Slack to enable users to communicate with Microsoft Teams users.

Markedly, the companies have witnessed surge in users owing to the coronavirus-induced demand. On Mar 19, 2020, Microsoft noted that Teams had 44 million daily active users (DAU). Moreover, out of Fortune 100 companies, 93 have implemented Microsoft Teams.



Robust adoption of the company’s offerings is instilling confidence in the stock. Notably, shares of Microsoft have returned 25.8% in the past year, outperforming the industry’s rally of 8.5%.

Nevertheless, Microsoft Teams’ 44 million DAU dwarfs Slack’s 12 million count (as of October 2019), per the last updates provided by both the companies. Notably, Slack is Teams’ closest competitor in the enterprise communication market.

Although, Slack isn’t divulging DAU count, the company’s CEO, Stewart Butterfield, acknowledged an uptick in new customers, on his Twitter account on Mar 25 in a thread.

We believe the new integration will aid the companies to boost engagement and offer enhanced services to its user base. Notably, Microsoft’s SharePoint, Outlook and OneDrive, are already integrated with Slack.

Efforts to Boost User Base to Beat Coronavirus Woes

Enterprises are increasingly adopting digital transformation techniques to automate and accelerate business processes, with focus on enhancing unified workspace communication to boost productivity at home amid the pandemic.

The coronavirus crisis-induced work from home trend is boosting demand for unified communication solutions, which is propelling companies to enhance their enterprise communication offerings with marketing and third-party app integrations. The companies are making the solutions free amid the crisis-ridden situation.

Microsoft recently updated Teams Meetings with new features, including enhanced audio experience, “raise hand” feature and reduced background noise with “noise suppression” capabilities. Moreover, new Bookings app enables users to schedule meetings as well as conduct interviews and appointments “with external participants” using Microsoft Teams.

The tech giant also unveiled new hardware including Collaboration bars, RealWear headsets, Teams Walkie Talkie on the Samsung XCover Pro, Bose headsets for Teams and Poly CCX Series of Teams phones to boost collaborative capabilities as well as enhance video conferencing for users working remotely.

Others in the Fray

Alphabet’s GOOGL Google is striving to enhance its enterprise G-Suite with advanced AI and ML-powered capabilities. Notably, Google Hangouts Meet’s video conferencing solutions can be availed for free till Jul 1, 2020.

Zoom Video Communications ZM is also offering virtual alternative for in-person meetings to aid users working from home schedule conference calls efficiently.

Notably, Facebook announced that its Workplace offering will aid emergency services workers and governments for free. Moreover, Cisco’s video conferencing and workplace communication offering, Webex, has also been made free for a selected frame of time.

We believe the new feature additions and integration with rival’s similar offerings are anticipated to aid the companies capitalize on the growth prospects of enterprise communication infrastructure market. Notably, the market is anticipated to see a CAGR of 17.53% between 2020 and 2025, per Mordor Intelligence data.

Zacks Rank

Microsoft currently carries a Zacks Rank #2 (Buy), while Slack is a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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