Salesforce’s $27.7 Billion Bet on Slack: Will the Vision Finally Pay Off?

Since Salesforce acquired Slack in 2020 for $27.7 billion, the platform has struggled to keep pace with Microsoft Teams, which dominates the market with over 320 million monthly users compared to Slack’s estimated 65 million, according to DemandSage. Despite efforts, Salesforce has yet to turn Slack into the envisioned “Digital HQ” for its enterprise base, as promised by CEO Marc Benioff. Slack Revisited.

Benioff’s ambition was to make Slack the central hub for collaboration within Salesforce-centric organizations, seamlessly integrating with Customer 360 and other Salesforce apps to drive automation and cross-functional data sharing. However, Slack’s progress toward this vision has been limited, with features like incident swarming and Slack Sales Elevate falling short of expectations. High turnover in leadership—including three CEOs in 2023 alone—has likely compounded the platform’s challenges.

Slack Revisited

While some companies initially embraced Slack, even high-profile customers like Disney reportedly switched to Microsoft Teams after a data breach incident, highlighting Slack’s ongoing struggle to secure a stronghold within the Salesforce ecosystem. Forrester VP and Principal Analyst Liz Herbert noted that there has been little demand from Salesforce’s CRM base for Slack, saying, “It really hasn’t become something compelling.”

A New Strategy for Success at Dreamforce 2024

Despite these setbacks, Salesforce signaled renewed commitment to making Slack a success at Dreamforce 2024. Three key shifts may finally help Slack turn the corner:

1. Transforming Salesforce Into a Platform Business

Salesforce announced at Dreamforce that all Customer 360 apps are now part of a unified platform, designed to drive adoption of its full stack, including Slack. This replatforming enables Slack to facilitate cross-cloud data sharing seamlessly, adding value to multi-cloud Salesforce implementations and creating opportunities for Slack to become integral to Salesforce’s ecosystem.

2. Integration with Agentforce and AI

Salesforce’s new Agentforce platform, which focuses on autonomous AI agents, could provide Slack a unique edge by transforming collaboration into a space where AI agents and users work together. Liz Miller of Constellation Research highlighted that if Slack can enable actions from AI agents across CRM systems, it would “change the game.” Imagine an AI agent surfacing insights or action items directly within Slack, guiding users to take action without needing to switch applications.

3. Rearchitecting Slack

To fulfill its “Digital HQ” promise, Salesforce brought in Patrick Harris, Slack’s co-founder and former CEO, to overhaul Slack’s architecture. This reengineering has already enabled the release of Agentforce within Slack, allowing teams to interact with Salesforce data and execute tasks directly from the Slack interface. As this integration deepens, Slack is positioned to become more than just a messaging tool—it could evolve into a powerful collaboration and AI-driven operational layer within the Salesforce ecosystem.

The Future: Can Slack Distinguish Itself?

While collaboration platforms have largely become commoditized, Slack’s integration into Salesforce’s CRM ecosystem offers a differentiator that competitors may struggle to replicate. Acting as a window into the Salesforce ecosystem—and potentially the AI orchestration layer across it—Slack could finally offer unique value that Microsoft Teams cannot.

Salesforce’s 21.7 percent CRM market share, as reported by IDC, dwarfs Microsoft’s 5.9 percent. Within that vast customer base lies Slack’s potential growth path. For Benioff’s vision to become a reality, Slack must demonstrate that it can deliver a unique, Salesforce-driven experience that competitors cannot match.