Slack is teaming up with Amazon as it battles Microsoft to be the go-to remote workplace communications tool with the coronavirus keeping more workers at home. Slack will shift to Amazon Web Services’ Chime infrastructure for voice and video calls on its platform under an expanded partnership announced by the companies Thursday afternoon. Amazon and Slack recently inked a deal to deploy the messaging platform across the Amazon Web Services (AWS) workforce. At the same time, Slack committed to continued reliance on AWS as their cloud provider of choice, and will use Amazon’s Chime to power Slack Calls. Slack is partnering with Amazon in a multiyear agreement that means all Amazon employees will be able to start using Slack. Team members can search for items on Amazon directly from Slack or they can simply paste the URL of an item they wish to buy. Buyer Bot will then process their request to purchase the item.
In conjunction with its first-quarter financial results, business communication platform Slack(NYSE: WORK) this week announced a partnership with Amazon.com(NASDAQ: AMZN). As part of the multiyear deal, Amazon Web Services (AWS) will adopt Slack's channel-based messaging solution for its employees. In addition, Slack will migrate all its voice and video calling from its Slack Calls feature -- which enables phone calls to other team members from with Slack's platform -- to Amazon Chime.
The partnership will put both companies in a better position against their common rival. The deal will put Slack on a better footing as it competes with Microsoft's (NASDAQ: MSFT) Teams business collaboration tool, while AWS goes head to head with Azure, its cloud computing platform.
This expands the existing cloud computing relationship between Amazon and Slack. Slack's chat app already resided on AWS, but this agreement takes that to whole new level. In addition to using AWS as the foundation for its technology platform, Slack is now making Amazon its preferred partner for a wide variety of cloud computing tasks, such as storage, compute, database, security, analytics, and machine learning, as well as for future collaboration features.
Popular Searches
'Strategically partnering with AWS allows both companies to scale to meet demand and deliver enterprise-grade offerings to our customers,' said Stewart Butterfield, CEO and co-founder of Slack. '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.'
The company was already enjoying a significant degree of success attracting users. During the first quarter, Slack added a record 12,000 net new paid customers, up 28% year over year, while clients contributing $100,000 in annual recurring revenue (ARR) grew 49%.
The additional functionality resulting from the partnership will no doubt help boost demand even further.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Danny Vena owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon, Microsoft, and Slack Technologies and recommends the following options: long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.
SPONSORED:
Webforpc com_mountain_lion_10 8_installer dmg. 10 stocks we like better than Amazon This blog is your blog.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now.. and Amazon wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Slack Stock Amazon
*Stock Advisor returns as of June 2, 2020