Garman noted, "Increasingly I see customers wanting to use best-of-breed products that work together. Amazon is the second-largest private-sector employer in the U.S., with over 840,000 full-time and part-time employees in the first quarter.Īmazon employees have been able to use an in-house video-calling tool called Chime, which the company also offers to its customers.īut Matt Garman, AWS' vice president for sales and marketing, admitted in an interview that Amazon has not invested in Chime's user interface to the extent that Slack has.
Some teams within Amazon had already used Slack, but this deal will bring it to all employees. 2025, up from a previous commitment of at least $250 million ending in July 2023. The new deal was negotiated separately from Slack's cloud contract, the companies said, declining to disclose exact terms. A filing on Thursday disclosed that Slack will now pay AWS at least $425 million over a five-year period that ends Apr. Slack has run its service on Amazon Web Services infrastructure since launching in 2014, and it has continued to lean on AWS to accommodate additional demand during the pandemic. The company's shares dropped more than 15% after hours.Īmazon and Slack have a long history. Slack's growth has remained steady during the coronavirus pandemic, but has not accelerated, despite many companies moving to keep employees home, the company revealed in its fiscal first quarter earnings report earlier on Thursday.
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