Salesforce buys Slack for $27.7bn [UPDATED]
UPDATE Salesforce has completed its Slack acquisition, the company's biggest to date. Salesforce paid $27.7 billion for the business messaging app
Salesforce is buying messaging platform Slack in a deal valuing the company at around $27.7 billion.
The move comes as technology companies scrabble for ownership of a post-pandemic move to hybrid working where employees need effective communication, productivity and sharing tools on an everything-everywhere basis.
Salesforce intends to combine Slack with its Salesforce Customer 360 platform, describing the resulting product as “transformative for customers and the industry”. A statement from Slack said: “The combination will create the operating system for the new way to work, uniquely enabling companies to grow and succeed in the all-digital world.”
'Made in heaven'
Marc Benioff, chair and CEO of Salesforce said, “Stewart and his team have built one of the most beloved platforms in enterprise software history, with an incredible ecosystem around it. This is a match made in heaven. Together, Salesforce and Slack will shape the future of enterprise software and transform the way everyone works in the all-digital, work-from-anywhere world. I’m thrilled to welcome Slack to the Salesforce ohana [family] once the transaction closes.”
Stewart Butterfield, Slack CEO and co-founder, said, “Salesforce started the cloud revolution, and two decades later, we are still tapping into all the possibilities it offers to transform the way we work. The opportunity we see together is massive. As software plays a more and more critical role in the performance of every organisation, we share a vision of reduced complexity, increased power and flexibility and, ultimately, a greater degree of alignment and organisational agility. Personally, I believe this is the most strategic combination in the history of software, and I can’t wait to get going.”
Slack integrates with 2,400 productivity apps, leading the companies to claim their combined product “will create the most extensive open ecosystem of apps and workflows for business”.
ServiceNow pumps millions into EU service compliance
ServiceNow, the digital workflow company, has announced a multimillion euro investment to help EU customers meet compliance requirements.
The legal, technical and organisational safeguards will help companies to comply with the the Schrems II judgment and European Data Protection Board (EDPB) Recommendations issued in June 2021.
ServiceNow’s investment means all EU-hosted data will be exclusively handled within the EU, and the cloud-hosted digital workflow provider claims its solution will come “without impact on current delivery and service”.
ServiceNow upgrade: free of charge
There will be no cost for current customers to opt in to the data compliance solution, even though ServiceNow is investing an unspecified multimillion euro sum and hiring more than 80 new staff across the bloc.
Mark Cockerill, vice president legal, EMEA and global head of privacy at ServiceNow, said: “With any regulation change, cloud services companies have a choice. They can adopt a ‘wait and see’ approach or get proactive and help customers and partners innovate. At ServiceNow we are on the front foot, continually investing in our customers, allowing them to operate with the highest level of choice and control over their EU data.
ServiceNow upgrade: ‘peace of mind’
“Our new EU-centric service delivery model will give our current customers and partners peace of mind. For customers and partners operating in highly regulated industries, or in the public sector, or those that have yet to make the switch to the cloud, this model gives them certainty and simplicity when selecting the cloud service that best suits their needs.”
Carla Arend, lead analyst, cloud in europe for IDC, said, “The Schrems II ruling has led European organizations to revisit their cloud-related data protection policies and processes when it comes to international data transfers through cloud services.
“Contractual, privacy, and security safeguards and the assurance that data will be kept and handled in the EU help European organizations to comply with European data protection laws while taking advantage of global cloud platforms. Vendors, such as ServiceNow, that invest to support their customers in response to this ruling are providing essential choice to their customers.”