In September, the software company Atlassian launched a new workplace chat app called Stride, aimed at using similar app Slack. "We have been excited about the tension we've seen from tens of thousands of teams who have adopted it as their communications platform," said the company in March blog.
Now, less than a year later, Atlassian releases the plug of the product, along with its former chat chat app HipChat. Atlassian said it would stop the two products by February 15, 2019 and end the communications business.
At the top of it, the intellectual property of Stride and HipChat transfers to Slack, as part of a deal the companies described as a "partnership." "Slak wants to migrate Atlassian users to their product." Atlassian also made a "equity investment" in Slack that Slack calls "small but symbolically important." The companies did not reveal the terms of the agreement.
The agreement seems to confirm what millions of office workers already know: Slack has become the dominant tool for workplace announcements. The company has more active users than Microsoft's competing team product, including many who are surprisingly passionate about it.
Slack started eating HipChat's market share in 2014, says Wade Foster, CEO of Zapier, who offers tools that allow users to connect different sky-hosted applications. According to Zapier's data, the number of people who joined Slakk to other applications, the number of people who did the same with HipChat by the end of 2014, decreased. The number of people using HipChat with Zapier, went quickly down, while the number using Slack skyrocket.  It is and saw a record of defeat from Atlassian. "They gave up on a third-party product to focus on being first in other places with developers." Must have been a very hard choice, "said Ross Mayfield, the founder of Pingpad, a launch that builds a collaboration tool for Slack and other platform platforms for the workplace.
The agreement may still have large islands for Atlassian, "said Jonathan Allan Kees, senior analyst at Summit Insights Group. The two companies will cross-promote each other's products, which may give Atlassian new customers to products including the JIRA bug tracking application "Communication is a very busy place in terms of peers, and this will allow Atlassian to focus on its core products, which grows," Kees said. In fact, the investors pushed Atlassian's share up 15% in aftershore after the deal was announced.
Atlassian and Slack have long worked together to ensure integration between their products. IDC analyst Wayne Kurtzman says companies have long been t frenemier, but says the contest comes to the end with two winners. "The deep Slack integration keeps Atlassian products in the middle of the workflow," said Kurtzman. "Both companies should enjoy increased profitability and customer satisfaction."
Not all Atlassian customers are happy. In a post on Atlasian message board, a customer complained that his company can not use Slack or other products based in the cloud. Slack does not offer a version of its product that can be run "on site" at the customers' own data centers. Atlassic spokeswoman Kelsey Castellow says that the company will support local customers until the licenses expire and then help Pingpils Mayfield says HipChat's error shows that demand for the premises is likely to fall as more companies switch to cloud-based services.
For Slack, the agreement means a smaller competitor and helps to break Atlassian's customers into their own products, instead of Microsoft. In March, Microsoft announced that law, which is included in the company's Office 365 cloud-based service was used by more than 200,000 organizations. It is well behind the 500,000 organizations Slack cited in May, but the teams had only been around for a year at the time of advertising.
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