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Slack Is Going Public at a $16B Valuation

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Re: Slack Is Going Public at a $16B Valuation

#101
post #65

Earlier quoted context omitted.

Why does anyone use the app instead of the site?

The site also is a heavy resource hog but you're right that it's overall less. There are plenty of lightweight clients that use the Slack API. I don't see why people complain so hard that the official client is heavy. Weechat with Slack is a dream feels like the good-ole IRC days.

The site doesn’t use any resources when I close its tab.

Re: Slack Is Going Public at a $16B Valuation

#102
post #32

Earlier quoted context omitted.

> and they didn't need to bend or break laws to succeed. I agree. There is no law against half-assed, bloated Electron based desktop software that can bring even recent hardware to its knees.

Why does anyone use the app instead of the site?

For me it’s a usability thing—I tend to lose track of SPA tabs, often by closing the window or not being able to differentiate them from content tabs. I do use web apps but I vastly prefer using my machine’s window manager and window buttons/lists.

Re: Slack Is Going Public at a $16B Valuation

#103
post #48

Earlier quoted context omitted.

Their moat is sticky enough and they know it. They can decide what verticals they want to compete it, but their company mission to make business-communication more effective is still as open a field as it was when they were founded. They may have to acquire their Instagram equivalent some time in the future, but I can easily imagine that their Enterprise Customers are here to stay.

>Their moat is sticky enough and they know it. I'm not sure that they're not just a feature. Even if MS teams sucks compared to Slack, the MS salesman can talk to the CIO of Megacorp and say they'll add it in for half of what Slack costs. They see X million in savings and suddenly the entire organization is using MS Teams instead of Slack.

Microsoft isn’t Oracle. They put Teams in the bundle and slowly break whatever they are replacing. In this case Skype.

If you’re big enough for Microsoft to care about you, you already have embedded SEs compensated based on OneDrive and Teams adoption. Your IT middle management pushes teams.

Your CIO is getting the cyber pitch based in the insecurity of your O365 implementation. The fix is to buy Azure AD or the next bundle (EMS), or maybe the E5 O365/Windows subscription.

Re: Slack Is Going Public at a $16B Valuation

#104

Earlier quoted context omitted.

Atlassian was already profitable weren’t they? There’s a disclaimer these unicorns put in their S1s - “we are not profitable and may never be” - Atlassian probably didn’t have to do that. That should count for something right?

That disclaimer is as old as dirt. I saw a company that sent public in 1960 had the same. Won't be surprised if Atlassian had the same.

Atlassian is profitable and has been from the beginning. It was bootstrapped.

Re: Slack Is Going Public at a $16B Valuation

#105

Their valuation stems from MAUs and majority are on the generous free tier. Do investors really think they can monetize the free users?

I've said this elsewhere in the thread, but Slack could already be making money off me if they offered an attractively priced plan for open source and hobbyist communities and gave workspace owners an easy way to forward that monthly subscription fee onto the users. But at the moment I use Slack a lot and pay them nothing.

Re: Slack Is Going Public at a $16B Valuation

#106

Earlier quoted context omitted.

Solid revenue and solid growth. I was not saying Slack has no monetization, but getting from 400M to 16B is 40X growth. To expand that quickly would require monetizing your existing users most of whom use the free tier. How does Slack really plan to do that?

why do they need to reach 16B in annual revenue? I dont think you will find any tech stock with a market cap of 1x revenue.

Fair enough, but 40X multiplier is on the tail end for tech companies that don’t sell ads (not to say they won’t in the future).

Re: Slack Is Going Public at a $16B Valuation

#107

Congrats to them. I used to be an avid user (loved the way some integrations could help productivity), but since then moved on to Discord, which feels superior in every aspect, especially since it's free. I'm not sure how I feel about the valuation. I'd like to see how the user base, especially the ratio of paying users, has been growing. It feels likely that most of the companies that would have been easy to convert…

How is Discord superior? I haven't really used it but my first impressions are that it seems very tailored to the gaming community. I have used Slack extensively and it appears more professional. And if Discord is free, how do they make money / keep the lights on? I do worry about Slack's pricing since there is a vast chasm between their free plan and their paid plans. I use Slack to run some open source and hobbyist…

Discord has much better performance for large communities, and I've found it to be perfect for remote collaboration with its intuitive and super low friction voice channels.

But the issue around professionalism that you bring up is certainly valid. I don't want to have to maintain separate accounts for work vs play (unless there's a seamless way to switch between them, like for Google, but currently there isn't), but currently there's no way to present different personas to different communities from the same account. Some examples:

- Can't change avatar based on server: https://support.discordapp.com/hc/en-us/community/posts/3600...

- Real account name shows up on profile even if you provide a different nickname to the server: https://support.discordapp.com/hc/en-us/articles/219070107-S...

I think they're still super laser focused on their core demographic of gamers rather than trying to expand into professional use and compete with the likes of Slack. You can certainly still use it in a professional capacity and it generally works great, and is better than Slack in some areas, but the lack of effort put into catering to those use cases definitely shows.

FWIW, I currently work around the issues around multi-account management using Firefox's excellent containers feature (using 1 work container to segregate all of my work accounts from personal ones without also having separate views of history).

Re: Slack Is Going Public at a $16B Valuation

#108
post #70

Earlier quoted context omitted.

Their moat is sticky enough and they know it. They can decide what verticals they want to compete it, but their company mission to make business-communication more effective is still as open a field as it was when they were founded. They may have to acquire their Instagram equivalent some time in the future, but I can easily imagine that their Enterprise Customers are here to stay.

My very-large project switched chat apps in one weekend (backed by a few weeks of prep by IT team). We had JIRA integration on day one, and one or two missing things within a week. It wasn't that big a deal. I think Slack aficionados overestimate how much investment most companies have in custom integrations and bots and things that increase switching costs.

Chat history seems like the issue to me. My company has tons of institutional knowledge locked away in slack channels.

Re: Slack Is Going Public at a $16B Valuation

#109
post #48

Earlier quoted context omitted.

>Their moat is sticky enough and they know it. I'm not sure that they're not just a feature. Even if MS teams sucks compared to Slack, the MS salesman can talk to the CIO of Megacorp and say they'll add it in for half of what Slack costs. They see X million in savings and suddenly the entire organization is using MS Teams instead of Slack.

My company is already paying for Teams as part of our O365 Installation. We won't use it, simply because of the network effect the Shared Channels have created. We have shared channels with Integration Partners, Suppliers, Enterprise Customers... These are extremely valuable ways of communication once setup, especially with simple file-transfer thrown in, etc. Leaving Slack would mean slamming the door in the face of…

I don’t know a single enterprise client that enables external Slack users. People are far too careless with what they share in IM (like private SSH keys and IP addresses), and Slack history is a juicy target for hackers diving for secrets.

Enterprise users usually just use it for internal messaging.

Re: Slack Is Going Public at a $16B Valuation

#110
It's still crazy to me that a $16B company can't make the financials of a true native app for Windows and macOS work. Microsoft has some real soul searching to do to fix up Windows development and make it easier and more attractive to companies. Thankfully it seems like both Microsoft and Apple are at least trying to make things easier. Apple will probably do the best with Project Catalyst (I mean, they already got Twitter!), but Microsoft is investing in React Native for Windows which could prove really interesting. Hopefully Microsoft doesn't settle for just making Electron better.
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