Quick Answer: Teams is Cheaper (But Slack is Better for Most Teams)
But the true cost picture is more nuanced. Read on for the real TCO analysis.
Feature Comparison: What You Get for Your Money
| Feature | Slack Pro ($12.50/mo) | Teams ($5-6/mo) | Winner |
|---|---|---|---|
| Message search history | Last 90 days (limited) | Unlimited | Teams |
| Integrations included | 2,500+ apps | 1,000+ apps | Slack |
| Video calls | Pro includes, limited | Unlimited meetings | Teams |
| File storage | Workspace paid plan | 1TB per user (OneDrive) | Teams |
| Desktop/mobile apps | Yes, native | Yes, native | Tie |
| Custom branding | Slack Business+ | Teams Enterprise | Tie |
| Guest access | Pro: Limited | Teams: Full | Teams |
| Workflow automation | Slack Workflow Builder | Power Automate (extra) | Slack |
Total Cost of Ownership Analysis: 100-Person Company
Scenario 1: Slack (Mature Organization)
Scenario 2: Microsoft Teams (With Office 365)
Real TCO Winner: Microsoft Teams saves ~$23,000/year even with admin overhead, IF you're already paying for Office 365. If starting fresh, costs are closer.
Who Should Use Each?
✅ Use Slack If:
- You need best-in-class integrations (2,500+ apps vs 1,000+)
- Your team has a non-Microsoft tech stack (AWS, Datadog, Notion, etc.)
- You need advanced workflow automation (Slack Workflow Builder is simpler)
- You already use Slack and switching cost exceeds $20K/year
- You're a remote-first company that depends heavily on Slack culture
✅ Use Teams If:
- You're already paying for Microsoft 365 (no incremental cost)
- You need video conferencing (Teams meetings are better than Slack)
- You value file storage integration (OneDrive sync is automatic)
- You need compliance/eDiscovery (Teams + O365 is deeper)
- You want to consolidate communication tools (Teams replaces Skype for Business)
- Cost is your primary driver
🤔 Use Both (Hybrid) If:
- Critical external vendors/partners require Slack
- You want Slack's integrations + Teams' cost efficiency
- Cost: ~$22,000-25,000/year for both on 100 people
How to Evaluate the Decision
1. Calculate Your Real TCO
Don't just look at per-seat pricing. Include:
- Data export costs (if you need compliance/archival)
- Admin time (Teams usually requires less)
- Integration costs (Slack integrations are cheaper to maintain)
- Migration effort (usually 2-4 weeks for 100+ person org)
2. Run a 4-Week Pilot
Set up Teams for a department (50-100 people) and compare:
- User adoption rate
- Integration gaps (what doesn't work in Teams?)
- Admin burden (easier or harder than Slack?)
- Actual costs (licensing, add-ons, admin time)
3. Negotiate Slack Pricing
If you stay with Slack, negotiate. Slack Business+ is only $12.50/month and typically gets 15-25% discounts for 3+ year commitments.
📧 Get the Full Slack vs Teams Analysis
Complete TCO calculator + migration checklist + negotiation templates for Slack pricing.
Bottom Line
If you have Office 365: Teams is nearly free and covers 80% of Slack's use cases. Switching saves $7,800+/year.
If you're on Slack: It's likely not worth switching unless you can reduce headcount or simplify your tech stack alongside the move.
For new companies: Start with Teams. It's cheaper, better integrated with Office/enterprise tools, and offers 80% of Slack's functionality. You can always switch to Slack later if your integration needs grow.