AWS and Slack Partnership Announced
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As organisations aim to maintain operations during the ongoing crisis, there has been an exponential increase in employees working from home and relying on the Workplace of the Future technologies. 41% of organisations in an ongoing Ecosystm study on the Digital Priorities in the New Normal cited making remote working possible as a key organisational measure introduced to combat current workplace challenges.

Ecosystm Principal Advisor, Audrey William says, “During the COVID-19 pandemic, people have become reliant on voice, video and collaboration tools and even when things go back to normal in the coming months, the blended way of work will be the norm. There has been a surge of video and collaboration technologies. The need to have good communication and collaboration tools whether at home or in the office has become a basic expectation especially when working from home. It has become non-negotiable.”

William also notes, “We are living in an ‘Experience Economy’ – if the user experience around voice, video and collaboration is poor, customers will find a platform that gives them the experience they like. To get that equation right is not easy and there is a lot of R&D, partnerships and user experience design involved.”

AWS and Slack Partnership

Amid a rapid increase in remote working requirements, AWS and Slack announced a multi-year partnership to collaborate on solutions to enable the Workplace of the Future. This will give Slack users the ability to manage their AWS resources within Slack, as well as replace Slack’s voice and video call features with AWS’s Amazon Chime. And AWS will be using Slack for their internal communication and collaboration.

Slack already uses AWS cloud infrastructure to support enterprise customers and have committed to spend USD 50 million a year over five years with AWS. However, the extended partnership is promising a new breed of solutions for the future workforce.

Slack and AWS are also planning to tightly integrate key features such as: AWS Key Management Service with Slack Enterprise Key Management (EKM) for better security and encryption; AWS Chatbot to push AWS Virtual machines notifications to Slack users; and AWS AppFlow to secure data flow between Slack, AWS S3 Storage and AWS Redshift data warehouse.

William says, “It’s a win-win for both vendors. AWS has sealed a good partnership for its Chime solution and other AWS cloud services. This ensures that Amazon Chime is used alongside a vendor with a reputation in the collaboration space. On the other hand, Slack gets the benefits of a robust cloud architecture including reliability and security and can now embed its collaboration offering with voice and video capabilities for its customers.”

The Competitive Landscape

The partnership between AWS and Slack has enabled Slack to scale and compete with more tools in its arsenal. The enterprise communication and collaboration market is heating up with announcements such as Zoom ramping up its infrastructure on Oracle Cloud. The other major cloud platform players already have their own collaboration offerings, with Microsoft Teams and Google Meet. The AWS-Slack announcement is another example of industry players looking to improve their offerings through partnership agreements. Slack is already integrated with a number of Microsoft services such as OneDrive, Outlook and SharePoint and there was talk of being integrated with Microsoft Teams  earlier this year. Similarly, Slack has also integrated some GSuite tools on its platform.

“There is a battle going on now in the voice, video and collaboration space and there are many players that offer rich enterprise grade capabilities in this space. AWS is already Slack’s “preferred” cloud infrastructure provider, and the two companies have a common rival in Microsoft, competing with its Azure and Teams products, respectively,” says William.

The Single Platform Approach

The competition in the video, voice and collaboration market in becoming increasingly intense and the ability to make it easy for users across all functions on one common platform is the ideal situation. This explains why we have seen vendors in recent months adding greater capabilities to their offerings. For instance, Zoom added Zoom phone functionality to expand its offerings to users. Avaya released Spaces – an integrated cloud meeting and team collaboration solution with chat, voice, video, online meetings, and content sharing capabilities. The market also has Cisco as an established presence, providing video and voice solutions to many large organisations.

Organisations want an all-in-one platform for voice, video and collaboration if possible as it makes it easier for management. Microsoft Teams is a single platform for enterprise communications and collaboration. William says, “Teams has seen steady uptake since its launch and for many IT managers the ability to capture all feedback, issues/logs on one platform is important. Other vendors are pushing the one vendor platform option heavily; for example, 8×8 has been able to secure wins in the market because of the one vendor platform push.”

“As the competition heats up, we can expect more acquisitions and partnerships in the communications and collaboration space, in an effort to provide all functions on a single platform,” says William. “However, irrespective of what IT Teams want, we are still seeing organisations use different platforms from multiple vendors. This is a clear indication that in the end there is only one benefit that organisations seek – quality of experience.”

 

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Team Ecosystm is Ecosystm’s inhouse content generation team, which is a part of our Marketing team. The content is generated through secondary research, and inputs from our analysts and advisors. The data findings mentioned in all Team Ecosystm posts are drawn from Ecosystm’s live and ongoing studies available on the Ecosystm platform.


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