Microsoft launched Microsoft Teams, a messaging system for businesses putting it in direct competition with Slack and Facebook's Workplace product.
The new software will be part of Microsoft's Office 365 services, a cloud-based software suite that has more than 85 million monthly active commercial users.
Slack, whose customers include CBS, BuzzFeed, universities and the US government, had over 4 million daily active users in October.
US-based Slack took out a full page ad in the New York Times on Wednesday, addressing the entry of Microsoft Teams.
"We're genuinely excited to have some competition," Slack said in the ad.
Microsoft said a preview of Teams will be available to Office 365 commercial customers with enterprise or business plans, starting Wednesday.
(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Sriraj Kalluvila)