Home Applications Slack purchases HipChat to show rivalry against Microsoft

Slack purchases HipChat to show rivalry against Microsoft


Slack takes over HipChat from Atlassian, enterprise software giant and a huge corporation. HipChat is a workplace chat service commonly used at the enterprise level by the employees to have an internal communication or chat within the office premises.

Slack’s main motivation behind acquiring the small start-up software is to blow out the tech giant Microsoft. Chief Executives of Slack and Atlassian said, “Slack will pay a considerable amount of value to AtlassianHipChat for next three years in order to use their service.”

CEO of Slack, Stewart Butterfield overlooked to have further discussions on this topic. While, the vice president of product management team of AtlassianJoffRedfern, said, “Our Company has invested even-handedly in Slack for which they have acquired IP for stride and HipChat cloud. Here onwards both will be discontinued.”

The purchase covers only the intellectual property rights of both the chat services. The partnership will bring a number of customers towards Slack. It can probably make additional money what Atlassian business failed to do.

Slack works on monthly subscription pay service. Microsoft, on the other hand, reveals ‘Team’ software to over 135 million office cloud customers. Currently, it has provided a free trial service for one month especially for those who haven’t subscribed to Office 365.

Both the companies have their own room for services. Atlassian works well in project management software while Slack in chat rooms. There are around hundreds and thousands of groups who use Slack and simultaneously use Atlassian products such as Trello and Jira. Some of the groups include NASA’s Jet Propulsion Laboratory and Capital One.

Redfern further continued, “We will be ceasing both the services – HipChat Data Centre and HipChat Server to work with Slack.” Over 2,600 employees of Atlassian will switch to the other service. If we talk about Microsoft, they have more than 200,000 businesses across 181 markets all over the world using Teams for internal chatting, video calling, audio calling, and sharing documents over Microsoft 365.

Slack currently has 500,000 active organizations that work whole and sole to make out money. Along with HipChat and Stride, there are several other Atlassian products that did not do well, says Wayne Kurtzman, a business analyst at IDC.

Atlassian had put in some efforts to shift their customers to Stride, which contained combined features of Microsoft and Slack.  It provided video and audio conferencing along with project tracking feature. HipChat customers will still be able to use the service installed on their servers for the next two to three years.

Butterfield said that he won’t force customers to go with the service. They may switch to it as and when interested.