Why Microsoft Teams Is Winning Over Slack: A Marketing Perspective

How Microsoft Teams Leveraged Bundling, Ecosystems, and Strategic Marketing to Outpace Slack

Emin Emini
Better Marketing
5 min readJan 6, 2025

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On the left side is presented the icon of Slack, while on the right is icon of Teams
Photo by Zapier

When Slack launched, it didn’t just disrupt workplace communication — it made it fun. Suddenly, office chats were playful, productive, and powered by endless integrations. But today, Slack’s biggest rival, Microsoft Teams, is dominating the market.

From a marketing lens, this isn’t just a battle of features — it’s a masterclass in how bundling, positioning, and ecosystem power can beat even the most beloved brands.

In 2017, Slack reported having over 6 million daily active users (DAUs) and more than 50,000 paid teams. Microsoft Teams, which launched in March 2017, reached approximately 2 million DAUs by the end of that year. Fast forward to 2020, and Microsoft Teams had grown to 75 million active users, largely driven by the shift to remote work during the pandemic. As of now, Teams boasts over 280 million active users, far outpacing Slack, which currently reports approximately 18 million paying customers but has not publicly shared updated DAU metrics.

On the image is shown a chart of user growth of Microsoft Teams and Slack. It’s visible that Microsoft Teams appeared much later than Slack, and in just a couple of years it’s surpassed Slack with users. In 2020 Teams had 75 million daily active users, while Slack had 12 million daily active users.
Image by chartr

Here’s how Teams is out-marketing Slack.

1. Teams Is Selling a Solution, Not a Product

Slack is great at marketing itself as the best chat tool for businesses. Its messaging centers around flexibility, integrations, and ease of use.

Microsoft Teams, however, doesn’t sell itself as just a chat tool — it positions itself as part of an all-in-one collaboration and productivity suite.

From a marketing perspective, this is gold. Teams is more than a product; it’s part of a broader solution. Businesses don’t just get a chat tool — they get chat, video, file sharing, and seamless integration with Microsoft 365.

Marketing takeaway: Selling a broader solution beats selling a single feature.

2. Teams Rides the Microsoft 365 Wave

Microsoft has done something Slack simply can’t: it bundled Teams with its already-dominant Microsoft 365 suite.

This isn’t just a pricing strategy; it’s a psychological win. When a tool like Teams is already included in the software a business is paying for, the decision feels automatic.

Slack’s marketing, in contrast, has to justify its cost against a tool that’s effectively “free.” That’s a tough battle to win.

Marketing takeaway: Piggyback on what your audience already uses and trusts.

3. Teams Markets to Decision-Makers, Not Just Users

Slack built its brand by appealing to end users: designers, developers, and marketers who loved its simplicity and integrations. This bottom-up strategy worked for smaller teams but struggles in large enterprises.

Microsoft Teams flipped the script. It marketed directly to IT leaders and decision-makers who prioritize compliance, security, and cost-effectiveness. These are the people who decide what tools a company uses — not necessarily the people who use them.

Teams also addresses pain points like user management and data governance, making it an easy sell for enterprise leaders.

Marketing takeaway: Tailor your messaging to the people making the purchasing decisions, not just the end users.

4. Teams Wins the Price War

Price is one of the most powerful tools in marketing. Teams, bundled with Microsoft 365, is effectively free for many companies.

Slack, meanwhile, requires an additional subscription. For businesses already paying for Microsoft 365, that extra cost is hard to justify — no matter how much better Slack might be.

Microsoft’s bundling strategy doesn’t just undercut Slack’s pricing; it reframes Teams as the cost-effective choice.

Marketing takeaway: Competitive pricing isn’t just about being cheaper — it’s about creating value perception.

5. Teams Uses Familiarity to Its Advantage

When you think of Microsoft, you think of Word, Excel, and PowerPoint — tools that have been staples in offices for decades. Let’s face it: Microsoft Teams feels like that trusty old jacket. It’s not flashy, but it fits perfectly because you’ve been wearing it for years.

Slack, while innovative, lacks this level of familiarity. Its playful branding and startup vibe are appealing, but they don’t resonate as strongly with more traditional enterprises.

Marketing takeaway: Familiarity breeds trust. Build on what your audience already knows and loves.

6. Teams Is Positioned as Enterprise-Ready

Slack’s marketing emphasizes flexibility, integrations, and ease of use — qualities that appeal to small and mid-sized teams.

Teams, on the other hand, positions itself as the go-to for enterprises. It emphasizes compliance, security, and scalability — things that matter to Fortune 500 companies and highly regulated industries.

This positioning gives Teams an edge in the lucrative enterprise market, where deals are bigger, and contracts last longer.

Marketing takeaway: Align your brand with the needs of your most lucrative audience segments.

7. Teams Leverages Network Effects

Microsoft Teams doesn’t just target individual companies — it’s creating a network effect. As more businesses adopt Teams, it becomes easier for companies to collaborate with clients, partners, and vendors already using the platform.

Slack’s marketing still focuses on internal team collaboration. While it excels there, it lacks the broader ecosystem approach that Teams has mastered.

Marketing takeaway: Build a product that grows stronger as more people adopt it.

8. Teams Benefits from Microsoft’s Marketing Power

Microsoft isn’t just a software company — it’s a marketing juggernaut. Its established relationships with enterprise clients, massive sales force, and brand recognition give it a promotional reach that Slack can’t match.

While Slack has built an incredible brand, it’s still competing against a giant with decades of marketing experience and resources.

Marketing takeaway: Even the best product needs the right marketing machine behind it.

The Big Picture

Let’s be clear: Slack’s marketing is excellent. It built a community of loyal users who genuinely love the product. Its playful tone, creative branding, and focus on user experience set it apart from Teams.

In marketing, being loved isn’t enough — you have to be chosen. Microsoft Teams didn’t “kill” Slack because it’s better; it won by being smarter. It leveraged its ecosystem, made its pricing irresistible, and focused on the needs of decision-makers.

For marketers, the lesson is clear: Success comes from understanding your audience and playing the long game.

So what do you think? Is Slack’s story over, or does it still have a fighting chance? Drop your thoughts in the comments below.

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Better Marketing
Better Marketing

Published in Better Marketing

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Emin Emini
Emin Emini

Written by Emin Emini

Skilled Software Engineer & Team Lead with 12+ years in industry. Passionate about tech (AI, ML, Apple), outdoor adventures, and continuous self-growth.

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