Zoho founder, Sridhar Vembu on Salesforce Slack Deal: Very soon we will see an exodus of talent out of Slack as cashed out engineers and product managers and marketers rush to the exits.

1/ The Salesforce – Slack acquisition demonstrates
the “operating system” of the technology industry.

The assumption is that professionals in Slack and professionals in Salesforce can nicely blend together to produce awesome results for customers and shareholders.

Culture!

2/ Slack and Salesforce grew up totally differently. The org cultures cannot be more different. “Culture eats strategy for breakfast” as the saying goes.

Yet somehow in the romantic excitement of the deal, all that is forgotten. Money is blind after all.

3/ Very soon we will see an exodus of talent out of Slack as cashed out engineers and product managers and marketers rush to the exits. Leadership waits discreetly till the check clears.

And new professionals have to come in and make good on the old romantic premise/promise.

4/ The very large sum paid has burdened the Salesforce balance sheet. They already have steep debt on the monumental skyscraper in San Francisco. The customer has to pay for all this.

Large scale technology acquisitions have an extremely poor track record for these reasons.

5/ If that’s all true, why do such acquisitions happen at all? Corporate hubris. Ego.

And Salesforce perpetually manufactures growth by counting acquired company revenues as “growth” as the stock market looks the other way, courtesy the Fed.

This game ends some day.


» NextBigWhat’s #Threadmill brings you curated wisdom from Twitter threads on product, life and growth.

Sign Up for NextBigWhat Newsletter

Daily.

You May Also Like

The Catch-22 of building a business on Apple’s APIs #sherlocking

What’s good for Apple isn’t necessarily good for you Apple always encourages adopting their latest APIs, tools, and languages like Swift; they’re incredibly powerful resources, but they also make us dependent on Apple’s ecosystem. From Apple’s perspective, they are happy to lock developers in. If they can have tons of incredible and unique apps that are exclusive to their platforms, that makes Apple’s products that much more compelling to their customers. But for a third-party developer, dependency on Apple’s APIs puts you in a tricky spot: it limits your customer base, and it puts your business at risk if Apple decides to compete with your product offering. If Apple ever offers a similar product for free, bundled into the operating system, it will be tough for your app to compete. Apple has an extensive history of sherlocking, and has continued this behavior with the most recent release of its mobile OS