A new survey by market research firm ETR has shown that enterprise collaboration software Slack is losing ground to Microsoft Teams, especially with larger companies.

Recode reports that “Slack’s market share among the world’s largest companies is mostly flat, adoption rates are declining, and a bigger portion of these companies indicate they plan on leaving the service.

Teams, in turn, saw increased market share, relatively higher adoption rates, and low rates of defection, according to the survey of CIO and other leaders.

Microsoft attributed Teams’ success to its bundling and integration with Office 365.

“Customers see Teams as a great deal because it’s part of Office 365, with deep integration into the other Office apps and services,” they noted.

“Large organizations spent the last three years moving to Azure [cloud services] and to Office 365,” Thomas DelVecchio, founder and chief executive officer of ETR parent company Aptiviti, told Recode. “They’re going to go with Teams unless there’s a dramatic difference with price and performance.”

ETR concurred, saying as well as integration with Office 365, cost tended to be the main reasons ETR survey respondents gave for using Teams over Slack.

Slack, whose share price is currently trading below their IPO price, declined to comment.

Comments