With today’s announcement from Atlassian that it was selling the IP assets of its two enterprise communications tools, Hipchat and Stride, to Slack, it closes the book on one of the earliest competitors in the modern enterprise collaboration space. It was also a clear signal that Slack is not afraid to take on its giant competitors by forming key alliances.
The fact the announcement came from Slack co-founder and CEO Stewart Butterfield on Twitter only exacerbated that fact. Atlassian has a set of popular developer tools like Jira, Confluence and Bitbucket. At this point, Hipchat and Stride had really become superfluous to the company and they sold the IP to their competitor.
Not only was Slack buying the assets and Atlassian was effectively shutting down these products, Atlassian was also investing in Slack, a move that shows it’s throwing its financial weight behind the company as well and forming an alliance with them.
Slack has been burning it up since in launched in 2014 with just 16,000 daily active users. At last count in May the company was reporting 8 million active users, 3 million of which were paid. That’s up from 6 million DAUs and 2 million paid users in September 2017. At the time, the company was reporting $200 million in annual recurring revenue. It’s a fair bet with the number of paid users growing by third at last count, that revenue number has increased significantly as well
Slack and products of its ilk like Workplace by Facebook, Google Hangouts and Microsoft Teams are trying to revolutionize the way we communicate and collaborate inside organizations. Slack has managed to advance the idea of enterprise communications that began in the early 2000 with chat clients, advanced to Enterprise 2.0 tools like Yammer and Jive in the mid-2000s, and finally evolved into modern tools like Slack we are using today in the mobile-cloud era.
Slack has been able to succeed so well in business because it does much more than provide a channel to communicate. It has built a platform on top of which companies can plug in an assortment of tools they are using every day to do their jobs like ServiceNow for help desk tickets, Salesforce for CRM and marketing data and Zendesk for customer service information.
This ability to provide a simple way to do all of your business in one place without a lot of task switching has been a holy grail of sorts in the enterprise for years. The two previously mentioned iterations, chat clients and Enterprise 2.0 tools, tried and failed to achieve this, but Slack has managed to create this single platform and made it easy for companies to integrate services.
This has been automated even further by the use of bots, which can act as trusted assistants inside of Slack providing additional information and performing tasks for you on your behalf when it makes sense.
Slack has an otherworldly valuation of over $5 billion right now and is on its way to an eventual IPO. Atlassian might have thrown in the towel on enterprise communications, but it has opened the door to getting a piece of that IPO action while giving its customers what they want and forming a strong bond with Slack.
Others like Facebook and Microsoft also have a strong presence in this space and continue to build out their products. It’s not as though anyone else is showing signs of throwing up their hands just yet. In fact, Just today Facebook bought Redkix to enhance its offering by giving users the ability to collaborate via email or the Workplace by Facebook interface, but Atlassian’s acquiescence is a strong signal that if you had any doubt, Slack is a leader here and they got a big boost with today’s announcement.