In summary, here’s why Salesforce acquiring Slack was a brilliant move:
- It provides organizations with a system of record for their employees’ work.
- It captures every interaction of the customer lifecycle.
- Its brand equity and reach will drive adoption of Slack in the enterprise.
- It streamlines external communication, making Sales teams more efficient.
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Is Salesforce paying too much for slack?
Slack and other instant-messaging platforms have only become more vital during the pandemic as millions of people work from home. And just last month, Salesforce announced it was buying Slack for a whopping $27.7 billion — that’s a pretty huge deal for a company that’s just seven years old.
When will Salesforce acquire Slack?
The transaction is anticipated to close in the second quarter of Salesforce’s fiscal year 2022, subject to approval by the Slack stockholders, the receipt of required regulatory approvals and other customary closing conditions.
Does Salesforce own slack?
Who owns Slack? Share All sharing options for: Now Salesforce officially owns Slack. Cloud computing giant Salesforce has completed its acquisition of Slack, a $27.7 billion dollar deal that adds the messaging app to its suite of enterprise software without immediately changing Slack’s functionality, branding, or leadership.
When is Salesforce buying slack?
With those questions in mind, here are 16 things for investors to know:
- The rumors all started because people familiar with the deal said Salesforce is in talks to buy Slack.
- As a result of those rumors, WORK stock is up nearly 23% in the market.
- CRM stock, however, is not so lucky. …
- This is likely because any such deal would value Slack at more than its $17 billion market capitalization.
The system of record for work
Traditionally, CRM (customer relationship management) software has been about, well, managing one’s customers. Indeed, CRM’s very definition is:
Distribution to the enterprise
The top 1% of Slack’s customer base (by contract value) accounts for 50% of Slack’s total revenue; that’s ~$450 million alone ( source ).
Streamlined external communication
Earlier this year, Slack launched Slack Connect, which enabled multiple organizations to communicate with one another, all from one Slack channel. It was a game changer for organizations of all types; their internal and external communication could now occur from the same place.
Product Roadmap
The Salesforce ecosystem of products has grown larger and more complex over the years (largely driven by the aforementioned acquisition strategy) and a major challenge that comes with this type of SaaS portfolio expansion is building the communication layer that sits between all applications.
Gives Salesforce Access to the SMB market
While Salesforce has always served earlier-stage organizations in the SMB market, they don’t often release products specifically targeting this segment.
Slack Developer and 3rd Party App Ecosystem
When it comes to the top 3rd party APIs being used to connect a company’s internal tools, Slack was used by 37% of respondents in a recent study on internal apps – #3 behind only GitHub and AWS. (Salesforce was 9th on the list with 16%.)
Competition with Microsoft
Microsoft has been a dominant player in consumer & enterprise technology for decades and the sheer scale of their user base afford them massive advantages.
What will Salesforce do with Slack?
Salesforce has a mixed track record with post-acquisition integration.
Slack to Salesforce Integration Overview
There is already huge value in connecting your Slack and Salesforce instance, which can be done through native integrations, using tools like Zapier, or with custom API development for more complex, bidirectional syncs.
How much did Salesforce buy Slack?
Salesforce has agreed to acquire Slack for $27.7 billion. (Bloomberg) Salesforce.com Inc. agreed to buy Slack Technologies Inc. for $27.7 billion in cash and stock, giving the corporate software giant a popular workplace-communications platform in one of the biggest technology deals of the year. Together, Salesforce and Slack will shape …
Who owns Slack Connect?
Salesforce CEO Marc Benioff says the Slack Connect digital communications application will integrate with the Salesforce suite of cloud-based ecommerce, marketing, sales, service and analytics software to help companies better serve their customers. Salesforce has agreed to acquire Slack for $27.7 billion.
Is Slack owned by Salesforce?
Salesforce ownership will mark a new era for Slack, a tech upstart with the lofty goal of trying to replace the need for business emails. The cloud-software giant may be able to sell Slack’s chatroom product to existing customers around the world, making it even more popular. Slack said in March that it had reached 12.5 million users who were simultaneously connected on its platform, which has grown more essential while corporate employees work from home during the coronavirus pandemic. Slack has boosted revenue in the midst of Covid-19, but the company’s billings have been underwhelming because of shaky demand from small and mid-sized clients.
When will Salesforce close?
Marc Benioff, chairman and CEO. Salesforce.com Inc. Tweet This. The transaction, Salesforce’s largest-ever acquisition, is expected to close by the end of July, the San Francisco-based company said Tuesday in a statement.
Is Slack a rival to Microsoft?
The Slack deal would give Salesforce, the leader in programs for managing customer relationships, another angle of attack against Microsoft Corp., which has itself become a major force in internet-based computing. Microsoft’s Teams product, which offers a workplace chatroom, automation tools and videoconference hosting, is a top rival to Slack.
Is Slack going public?
Slack, which is expected to increase its sales by almost 40% to $877 million this fiscal year, could help that effort. Slack, launched in 2013, went public via a direct listing in 2019. Bloomberg News and other publications reported that companies including Amazon.com Inc., Microsoft, and Alphabet Inc.’s Google expressed interest in buying Slack …
Who is the CEO of Slack?
Stewart Butterfield, Slack’s co-founder and CEO, will continue to run the business as a Salesforce unit when the deal is completed. He said he is excited to join the company that sparked the cloud revolution. “The opportunity we see together is massive,” Butterfield said in the statement.
Does Slack compete with Microsoft?
Yes , Slack competes with Microsoft. But Slack is past $1B in annual revenues with a dominant brand and very high net revenue retention (120%+). Salesforce may not be great at creating brand new things anymore. But it knows how to lean into a dominant market share.
Is Slack an enterprise?
They know how to take an established brand and grow it faster, and build or expand a new core offering around it. Slack has already become very enterprise. The majority of Slack’s growth is from larger, enterprise accounts where Salesforce is strong. $100k+ deals are the majority of its growth engine.
Is Salesforce good?
Salesforce is very, very good at providing a bigger solution — and then charging more for it. Watch it over time drive up Slack ACVs, most likely. It looks like Slack has been under some pricing pressure from Microsoft. That won’t go away, but Salesforce knows how to sell against a cheaper solution.
The System of Record For Work
Distribution to The Enterprise
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The top 1% of Slack’s customer base (by contract value) accounts for 50% of Slack’s total revenue; that’s ~$450 million alone (source). Needless to say, the enterprise is where the big bucks are to be made. Margins are bigger, switching costs are higher, and there’s upsell opportunities galore (training, expansion, upgrades, etc). Today, 61 of the Fortune 100 companie…
Streamlined External Communication
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Earlier this year, Slack launched Slack Connect, which enabled multiple organizations to communicate with one another, all from one Slack channel. It was a game changer for organizations of all types; their internal and external communication could now occur from the same place. Conversations between organizations usually take place over email, whi…