If you missed the news…Salesforce is buying Slack for $28 billion. To be clear, the deal is $27.7 billion in cold hard cash plus Salesforce stock. But who cares about money, amirite? Why does this deal even make sense?
Ina Fried for Axios:
[Salesforce] CEO Marc Benioff characterized the move as a bet that the pandemic-driven shift to remote work isn’t a temporary blip but rather a permanent transformation.
Slack has the lead in its still-nascent space, but was facing a challenge of its own — namely that Microsoft’s rival Teams was bundled into Office subscriptions. As a standalone company, Slack couldn’t easily manage such a move, nor could it afford to get into a price war.
I liked what Aaron Levie (Co-founder and CEO of Box) said about this deal and the future of work:
What’s amazing is that even though the current wave of enterprise software to power the future of work has been going strong for 10+ years, we’re still in the very earliest of stages in this market. The last decade has been about building the tools that power new ways to work from anywhere, collaborate with anyone, and automate workflows and business processes in the cloud. The next decade will be the era when organizations adopt these technologies en masse and transform their enterprises. While many of us in Silicon Valley and similar ecosystems have been using tools like Slack for years now (and even Microsoft Teams, more recently), 90%+ of the world’s digital workers are still not leveraging these modern platforms for the majority of their work. While it’s hard to imagine, we’re still in the early innings of this market.