Atlassian and Slack Become Partners
Slack made a surprising announcement today that it’s acquired HipChat, once a primary competitor to its workplace chat service, from enterprise software giant Atlassian. As part of the partnership between Slack and Atlassian, HipChat will be shutting down and the two companies will work together to migrate all of its users over to Slack. The same goes for Stride, the chat and collaboration successor to HipChat that Atlassian launched last year.
Atlassian, a company that makes a variety of tools for technical workers to collaborate and shares information, has announced a strategic partnership with rival Slack, a start-up that makes a popular messaging tool for the workplace. Shares of Atlassian rapidly increased to 17 percent in after-hours of trending this news.
As part of the deal, Slack is acquiring the intellectual property for Atlassian’s Stride and HipChat Cloud, both of which compete with Slack and shutting them down. Atlassian is making “a small, but symbolically important” probity investment in Slack, the company wrote in a blog post, and with that will exit the business communications space.
In exchange, Atlassian gets a small stake in the startup, while Slack pays an undisclosed value over the next three years to fully reap the HipChat and Stride user bases. The partnership comes at a pivotal time for corporate chat software, with Microsoft ramping up competition with a rival product called Teams that’s immediately misogynist for 135 million Office deject subscribers. There’s plane a self-ruling version of Teams misogynist made to lure new users in, a strategy similar to Slack’s. Facebook too has its own take on the product, called Workplace.
Prior to this partnership, Atlassian attempted to stay competitive in the corporate chat space by moving its HipChat customers to a new team product, which it called Stride. That service offered audio/video conferencing and project-tracking slantingly standard chat and other communication features. Unfortunately, like HipChat, Stride failed to proceeds the traction required to alimony it profitable, expressly as big corporate names like Microsoft entered the enterprise chat space.
As for existing HipChat users, they’ll have the option to use the service until February, at which point they’ll be encouraged to transition over to Slack. To date, Microsoft claims 200,000 organizations use Teams, while Slack claims 500,000 active organizations.
Slack will pay what CEO Stewart Butterfield described to Bloomberg as a “nominal” value over the next three years for the products, which will requite Slack increasingly customers. In turn, Atlassian can exit communications, a business that failed to generate as much demand as expected. The companies said they will moreover work to deepen current integrations and on develop new ones between the Slack and Atlassian families of product.
Atlassian co-CEO Mike Cannon-Brookes told that:
“We’re very proud of what the team has built, But at the same time, it is a crowded space, and there’s a pragmatic option there.”
The deal allows both companies to focus on areas where they excel and strengthening them against growing competition from Microsoft and its rival product, Teams. Any revenue Atlassian loses from the deal will be offset by Slack’s payments in the coming years.
The companies also said they expect to partner for marketing, sales, and channel enablement. Specifics on those plans will roll out later.
Slack has been one of the hottest business-focused start-ups in Silicon Valley in the last five years and had raised $790 million, including a $250 million round led by the SoftBank Vision Fund, in September 2017. The start-up was valued at $5.1 billion in that round.
Last of all, it is a great news related to IT sector, Slack and Atlassian become partners.So this partnership is very important. Let see what happen next, tune to our blog we post it soon.