As the shift to work-from-home increased adoption and engagement, Slack CEO Stewart Butterfield said, “Remote work will be a much bigger part of the working world moving forward," during the company's earnings call on June 4. The company expects the pandemic to dry up IT budgets available to its customers, thereby affecting the demand for Slack as well as increasing its attrition rates. Furthermore, in its SEC filing, it said that its salespeople's inability "to travel to potential customers and of our customer success team to conduct in-person training and consulting work" could negatively impact expected spending from new customers, increase sales cycle times, negatively impact collections of accounts receivable. The company said to prepare for potential surges in demand, it may incur additional costs and make additional investments. AWS to remain, preferred cloud provider, as Slack becomes AWS’ intra-office communication system: The same day as the company announced its earnings, it also announced a multi-year agreement with Amazon Web Services under which Slack will migrate its Slack Calls (voice and video calling) to Amazon Chime — AWS’ communications service —, AWS will remain Slack’s preferred cloud provider and Slack will use AWS services including storage, computation, database, security, analytics and machine learnings, and AWS will use Slack for intra-AWS communications. AWS Chatbot and Amazon AppFlow will also be integrated with Slack. Customer churn likely to continue but to focus more on small, medium businesses Although Slack added over 90,000 new organisations in Q1, only 12,000 of they are new paid customers.…
