Matrix: a European alternative to Slack and Microsoft Teams for small businesses
By Simon Casano · Published on 02/10/2026 · Updated on 26/10/2026 · 7 min read
Also available in: Français · Nederlands · Deutsch
In short
- Matrix is an open standard for team chat, the way email is for mail: you choose your server, where it is hosted and which app you use.
- Compared with Slack and Teams, it encrypts private conversations end to end, it federates with other organisations, and it can cost a flat price whatever the number of users.
- It needs a little support at the start, especially for encryption keys, and has fewer ready-made integrations.
- Public bodies already use it at scale: Tchap in France, BwMessenger in the German armed forces, TI-Messenger in German healthcare.
Slack and Microsoft Teams have become the default tools for team chat. They are convenient, but your conversations are stored by an American company, the price goes up with every user, and you depend entirely on their decisions.
Matrix takes a different approach: an open standard that you can host yourself or have hosted in Europe. This guide explains what Matrix is, what actually changes compared with Slack and Teams, what it costs and how to switch without disrupting your team.
What is Matrix?
Matrix is an open communication protocol maintained by the Matrix.org Foundation. It is not an app but a standard, a bit like email: anyone can run a server, and different apps can talk to each other.
In practice, an organisation has its own Matrix server, most often Synapse, on its own domain name. Addresses look like @firstname:your-company.be. Users sign in with an app such as Element, available on desktop, in the browser and on smartphones.
It offers what you expect from team chat: rooms, the equivalent of Slack channels, direct messages, threads, file sharing, reactions and audio and video calls. Rooms can be grouped into spaces, for example one space for the company and another for a project with a client.
Matrix, Slack and Teams side by side
All three tools cover the same day-to-day needs. They differ mainly on control of your data, encryption and the way they are billed.
| Criterion | Matrix (hosted) | Slack | Microsoft Teams |
|---|---|---|---|
| Where the data is | On your server, in the country you choose | With Slack (Salesforce), EU residency depending on the plan | With Microsoft, EU storage depending on the contract |
| End-to-end encryption of messages | Yes, by default for direct messages and private rooms | No | Not for messages, optional for some calls |
| Chatting with other organisations | Open federation between Matrix servers | Slack Connect, between Slack customers | External access, between Microsoft organisations |
| Billing | Flat price per server possible | Per user per month | Per user per month, often within Microsoft 365 |
| Software | Open source (protocol and server) | Proprietary | Proprietary |
| Ready-made integrations | Fewer (bridges, bots, webhooks) | Very many | Very many, especially Microsoft 365 |
What actually changes
- Your data stays on your server: you choose where it is hosted, for example in the European Union, and who has access. That makes GDPR documentation simpler.
- End-to-end encryption: only the participants of an encrypted conversation can read it, not even the hosting provider. Slack and Teams do not encrypt messages this way.
- Federation: your users can talk to people on other Matrix servers (partners, clients, suppliers) without everyone having to create an account on the other side.
- No lock-in: the protocol and the software are open source. If you change hosting provider, you keep your domain. To keep accounts and history as well, the server database has to be migrated: ask your provider whether they supply that export.
- Price: Slack and Teams are billed per user. A hosted Matrix server can come at a flat price, whatever the number of people.
End-to-end encryption in practice
In Element, direct messages and private rooms are encrypted end to end by default. Each device has its own keys: the server carries and stores the messages but cannot read them. Public rooms, open to anyone, are usually not encrypted, since anyone can join them.
This protection comes at a price: if a user loses all their devices without having saved their recovery key, they can no longer read their old encrypted messages. The hosting provider cannot decrypt them on their behalf. Good practice is simple:
- turn on key backup at the first sign-in and keep the recovery key in a password manager;
- verify each new device from a device that is already signed in, much like scanning a QR code;
- remember that when someone leaves, their encrypted messages stay unreadable for the company: what must be kept is shared in rooms, not in direct messages.
Encryption protects the content of messages. Metadata, meaning who talks to whom and when, remains visible to the server. That is one more reason to choose where it is hosted.
Federation: talking to other organisations
Federation works like email. Your server your-company.be can exchange messages with the server of a client or a supplier. A shared room then exists on both servers, and everyone keeps their account at home.
It is useful for a joint project, a group of companies or an association working with several partners. It is not mandatory: a server can be limited to a few trusted domains, or stay closed if you only want to talk internally.
Worth knowing: files and images exchanged with other servers are copied onto yours. A heavily federated server therefore sees its storage grow faster.
What it costs
With a tool billed per user, every new person increases the bill. With a Matrix server hosted at a flat price, the price depends on the size of the server, not on the number of users. Here is what that looks like with Xeron’s plans, Belgian VAT included:
| Team size | Xeron plan | Price per month (incl. VAT) | Tool billed per user |
|---|---|---|---|
| 5 people | Starter (up to 20) | €5 | 5 × the price per user |
| 15 people | Starter (up to 20) | €5 | 15 × the price per user |
| 60 people | Standard (up to 100) | €10 | 60 × the price per user |
| 150 people | Pro (unlimited) | €20 | 150 × the price per user |
The subscription is not the only cost: also plan an hour or two of training at the start, and the time to recreate your channels. If you host Matrix yourself, add the server, security updates and backups, which need regular attention.
Who uses Matrix?
Matrix is not a fringe project. The French state uses it for Tchap, the messaging app for its civil servants. In Germany, the armed forces use it for BwMessenger, and the healthcare sector relies on it for TI-Messenger, which lets care professionals exchange securely.
These choices are made for the same reasons as in a small business: keeping control of your data, encrypting conversations and not depending on a single vendor. The difference is scale: what works for hundreds of thousands of users also works for a team of ten.
What about other alternatives?
Matrix is not the only open-source option. Mattermost and Zulip, for example, are open-source team chat tools that you can host yourself. They feel closer to Slack, but they do not encrypt messages end to end by default and do not offer open federation between organisations.
If the confidentiality of your conversations or talking to other organisations matters to you, Matrix is currently the most complete choice. If what you mainly want is a self-hosted Slack without end-to-end encryption, the other options are worth a try.
Limits to be aware of
Matrix is not perfect, and it is better to know this before you switch:
- Fewer integrations: Slack and Teams connect to hundreds of tools in one click. With Matrix the choice is smaller, even though bridges, bots and webhooks exist.
- Managing encryption keys: to read old encrypted messages on a new device, each user has to keep their recovery key. It is a habit to learn.
- A slightly different experience: Element looks like Slack, but some settings are specific to Matrix. A short training session at the start avoids a lot of questions.
- Media storage: shared files, especially with federation, take up space. Check the storage included and what happens when it is full.
Moving a small business to Matrix
A successful switch happens in stages:
- Start with a pilot team of a few people for two or three weeks, on real work.
- Recreate your main channels as rooms, and group them in a space for the company.
- Show everyone how to install Element on their computer and phone, and save their recovery key.
- Name one person to answer questions during the first weeks.
- Set a date from which internal conversations happen on Matrix, and keep the old tool read-only for a while.
Slack or Teams history does not transfer easily. The simplest approach is often to export what needs to be archived and start afresh in Matrix.
If you do not want to manage a server, managed Matrix hosting takes care of installation, security updates and backups. You keep your domain and your data, without the maintenance.