Slack and Teams are both popular tools in their category, but they serve different needs and audiences. This guide compares their features, pricing, and best use cases to help you choose the right one.
Choosing between Slack and Microsoft Teams is one of the most common decisions small businesses face. Both are excellent — but they serve different types of teams. Here’s how they compare for small businesses specifically.
Quick Verdict
Choose Slack if your team uses diverse SaaS tools (Notion, Asana, Figma, etc.) and values a clean, focused chat experience.
Choose Teams if your team already uses Microsoft 365 (Word, Excel, Outlook) and needs video conferencing included.
Pricing Comparison for Small Business
| Plan | Slack | Microsoft Teams |
|---|---|---|
| Free | 90 days of messages | Unlimited messages |
| Starter | $7.25/user/month | $4/user/month |
| Mid-tier | $12.50/user/month | $6/user/month |
| Full suite | — | $12.50/user/month (with Office apps) |
Winner: Microsoft Teams — Significantly cheaper, especially if you need Office apps. Teams Essentials at $4/user/month is half the price of Slack Pro.
Feature Comparison
Messaging & Channels
Both offer channels, threads, and direct messages. Slack’s threading is more intuitive — conversations stay contained. Teams’ threading can feel clunky, with replies sometimes getting lost.
Winner: Slack — Better thread management and channel organization.
Video Conferencing
Teams includes full video conferencing (up to 300 participants) in every plan. Slack offers Huddles (audio-first, up to 50 people) but no full-featured video meetings on free/Pro plans.
Winner: Teams — Video conferencing is a core feature, not an add-on.
Integrations
Slack connects to 2,600+ apps. Teams has fewer native integrations but deep Microsoft 365 integration. If your stack is Google Workspace + various SaaS tools, Slack integrates better. If you’re a Microsoft shop, Teams is seamless.
Winner: Depends — Slack for diverse SaaS stacks, Teams for Microsoft ecosystems.
File Sharing
Teams integrates directly with SharePoint and OneDrive, making file collaboration seamless. Slack stores files in channels but lacks native document editing.
Winner: Teams — Built-in document collaboration with Office apps.
Search
Slack’s search is powerful with filters, operators, and modifiers. Teams’ search has improved but still lags behind Slack in accuracy and speed.
Winner: Slack — More precise and faster search.
Real-World Scenarios
Scenario 1: 5-Person Marketing Agency
- Uses Canva, Notion, Asana, and Google Workspace
- Needs quick client communication and file sharing
- Best choice: Slack — Better integrations with their tool stack, Slack Connect for clients
Scenario 2: 10-Person Accounting Firm
- Uses Excel, Word, Outlook daily
- Needs video calls with clients
- Best choice: Teams — Office integration and built-in video calls save money
Scenario 3: 15-Person Tech Startup
- Uses Linear, Figma, GitHub, and various APIs
- Developers prefer keyboard shortcuts and automation
- Best choice: Slack — Developer-friendly integrations and workflow automations
Migration Considerations
Already on one and thinking of switching? Consider these factors:
- Switching from Slack to Teams: You’ll save money but lose some integration flexibility. See our migration guide →
- Switching from Teams to Slack: You’ll get better integrations but pay more. Make sure your team doesn’t depend on Office 365 integration.
The Bottom Line
| Factor | Slack | Teams |
|---|---|---|
| Price | $$$ | $ |
| Messaging UX | ⭐⭐⭐⭐⭐ | ⭐⭐⭐ |
| Video calling | ⭐⭐⭐ | ⭐⭐⭐⭐⭐ |
| Integrations | ⭐⭐⭐⭐⭐ | ⭐⭐⭐ (⭐⭐⭐⭐⭐ for Microsoft) |
| File management | ⭐⭐⭐ | ⭐⭐⭐⭐⭐ |
| Small biz value | ⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ |
For most small businesses on a budget, Microsoft Teams offers better value. For small businesses that prioritize communication quality and use diverse SaaS tools, Slack is worth the premium.
Read our full Slack review → | Read our full Teams review →
Compare all communication tools →
Frequently Asked Questions
Is Slack or Teams better?
It depends on your needs. Slack and Teams excel in different areas — compare features, pricing, and use cases above to find the best fit for your workflow.
Can I use Slack and Teams together?
Yes, many teams use both. Slack and Teams can complement each other depending on your workflow requirements.
Which is cheaper, Slack or Teams?
Check the pricing comparison table above for current plans. Both offer free tiers, but paid plan pricing varies significantly based on team size and features needed.