June 5, 2020

AWS partners with Slack in key move against Microsoft for collaboration dominance

By Robert Scammell

Cloud giant Amazon Web Services (AWS) has partnered with Slack in a deal that will see up to 840,000 Amazon employees use the business communication platform

The multi-year strategic initiative will also see Slack migrate its voice and video calling to Amazon Chime, AWS’ communications service. The move heats up the rivalry with Microsoft, which competes with Slack via Microsoft Teams and AWS via Microsoft’s Azure cloud platform.

Slack has long depended on Amazon as its cloud provider but the partnership, announced Thursday, marks a much closer relationship between the two tech firms.

Slack will integrate Amazon AppFlow to allow users to securely transfer data between Slack and AWS services such as AWS S3 buckets, a popular form of cloud storage among enterprises.

AWS Chatbot, an automated agent that assists users with their AWS accounts, will also be integrated into the platform.

Both integrations are geared towards helping remote workers manage AWS resources from within the collaboration platform.

Slack will also give users the option to choose where their data resides thanks to AWS’ global infrastructure network.

“The future of enterprise software will be driven by the combination of cloud services and workstream collaboration tools,” says Stewart Butterfield, the co-founder and CEO of Slack.

“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.”

Partnership follows successful for quarters for tech firms

The partnership follows a record-quarter for Slack, which showed the firm now has more than 122,000 paying customers – a year-over-year increase of 28%. Total revenue for the quarter, ended 30 April, was $201.7m, an increase of 50% year-over-year.

AWS passed the $10bn revenue milestone in Q1 earnings this year as the world’s largest cloud provider showed resilience amid the pandemic’s tough economic conditions.

“Together, AWS and Slack are giving developer teams the ability to collaborate and innovate faster on the front end with applications, while giving them the ability to efficiently manage their backend cloud infrastructure,” said Andy Jassy, CEO of AWS.

“AWS customers gain a powerful new means of managing their AWS resources that will help teams collaborate and build more applications using the broadest and deepest set of cloud services. We look forward to working with Slack to expand the ways we can help our customers innovate in the cloud.”

Read more: Coronavirus sees Slack use surge 25% in 16 days

Verdict deals analysis methodology

This analysis considers only announced and completed cloud-deals deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.

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