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A bit of a hyperbole on this. Slack is allowed for example, but only the enterprise edition which allows for them to meet compliance regulations.

This sort of policy is pretty typical at any organization of size with a proper legal team.

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It's definitely not just hyperbole. "Microsoft bans Free Slack" would've been accurate. "Microsoft bans Slack" is actually false.

Ok, we've made Slack free above.

I wonder if Slack lets organizations do on-premises (for compliance purposes, as you mention) e.g., as GitHub Enterprise does (many companies don't want to keep their raw source code in someone else's cloud).

They don't have such a product yet

Kind of surprising, to be honest. Business communication could be more valuable than source code to a bad actor.

The enterprise version they note is secure enough but still discouraged because it’s less about security and more about perception. Why would customers want to use the Microsoft equivalent if even their employees don’t.

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