These two startups are out to dethrone Slack

Different approaches, similar goal: foster better teamwork

There's nothing like raging success to bring on a pack of competitors, and that's exactly what's now happening in the enterprise-collaboration arena.

Ever since the public launch of its team-communication software two years ago, Slack has taken enterprises by storm, propelled by its freemium business model and plenty of investor enthusiasm. Today, it claims 2.3 million daily active users, more than 675,000 paid seats and over US$64 million in annual recurring revenue.

Other companies smell opportunity.

Two new contenders entered the scene this week, both hoping to claim a piece of the pie for themselves. On Wednesday, it was SpotCues with what it calls the industry's first location-based contextual social network. On Thursday, Kore debuted a "bot-based" messaging platform.

Different approaches, same general goal: doing Slack one better.

"What Slack has done is make this market extremely visible," said Adam Preset, a principal research analyst with Gartner. "Competitors are calculating whether Slack will own that entire market and placing a bet that individuals, teams and enterprises might want something different."

SpotCues' bet is on technology that uses Wi-Fi or geofencing to create a social network at any location, allowing users to join the network in real-time, interact with mobile users near them and access location-specific apps. SpotCues is launching into large businesses first with a focus on connecting and engaging employees, but it also plans to expand into other organized communities.

"Enterprises have long desired a culture-building tool designed specifically for social collaboration using mobile phones," said Praveen Kanyadi, cofounder of the company.

Kore, on the other hand, has focused on "bots," or lightweight programs that connect with third-party apps and business systems via APIs. Essentially, the bots let users communicate with apps and business systems through the same interface they use to chat with coworkers. More than 100 prebuilt bots come included, offering integration with a variety of enterprise software. Kore and SAP are also collaborating on more.

Kore promises to marry team communications and business systems "in a simple, modern interface that people will love," said Raj Koneru, the company's CEO. In addition, Kore gives CIOs the "control and security they need," he added.

While much of the rhetoric today is about Slack because of its early emergence as a de facto leader, "the target is actually this issue around team communications," said T.J. Keitt, a senior analyst with Forrester.

It's a big issue for enterprises. The market for the broader category of unified communications is about $42 billion worldwide, Gartner's Preset said. "That's a huge market. The messaging piece of it is relatively modest, but even a modest portion is a good amount."

There's plenty of room for competition, said Vanessa Thompson, a research vice president with IDC.

Slack's good timing and PR helped it capture the "eyes and ears" of venture capitalists, but the company also showed there are new options for solving the "increasingly systemic business challenge" of connecting project-based workers, Thompson said.

Modes of collaboration are converging from workspaces, presence, messaging, groups, activity streams, voice and video, she said. "New products can have any number of these capabilities natively or be able to connect with other services to serve broader needs," Thompson added.

Frequently, companies will use more than one collaboration tool.

"There is some displacement taking place, but we will see organizations running a number of Slack-type applications in parallel to solve different and diverse requirements," Thompson said.

Whether Slack's dominance continues remains to be seen.

"There's always the risk that the mega vendors in this space -- Microsoft, Google and IBM -- will decide they want to create something like Slack and bundle it into their popular collaboration and productivity portfolios," said Forrester's Keitt.

To keep growing its business, Slack will have to evolve its platform, and that poses risks of its own, he added.

While the competitive landscape may shift as more competitors emerge, there's no doubt of the category's continuing importance.

"The message is the atomic unit of collaboration," Preset said. "Organizations focused on communication really want to get the messaging platform right."

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Conversations over a cuppa with CMO: Microsoft's Pip Arthur

​In this latest episode of our conversations over a cuppa with CMO, we catch up with the delightful Pip Arthur, Microsoft Australia's chief marketing officer and communications director, to talk about thinking differently, delivering on B2B connection in the crisis, brand purpose and marketing transformation.

More Videos

JP54,D2, D6, JetA1 EN590Dear Buyer/ Buyer mandate,We currently have Available FOB Rotterdam/Houston for JP54,D2, D6,JetA1 with good and w...

Collins Johnson

Oath to fully acquire Yahoo7 from Seven West Media

Read more

Great content and well explained. Everything you need to know about Digital Design, this article has got you covered. You may also check ...

Ryota Miyagi

Why the art of human-centred design has become a vital CX tool

Read more

Interested in virtual events? If you are looking for an amazing virtual booth, this is definitely worth checking https://virtualbooth.ad...

Cecille Pabon

Report: Covid effect sees digital events on the rise long-term

Read more

Thank you so much for sharing such an informative article. It’s really impressive.Click Here & Create Status and share with family

Sanwataram

Predictions: 14 digital marketing predictions for 2021

Read more

Nice!https://www.live-radio-onli...

OmiljeniRadio RadioStanice Uzi

Google+ and Blogger cozy up with new comment system

Read more

Blog Posts

A Brand for social justice

In 2020, brands did something they’d never done before: They spoke up about race.

Dipanjan Chatterjee and Xiaofeng Wang

VP and principal analyst and senior analyst, Forrester

Determining our Humanity

‘Business as unusual’ is a term my organisation has adopted to describe the professional aftermath of COVID-19 and the rest of the tragic events this year. Social distancing, perspex screens at counters and masks in all manner of situations have introduced us to a world we were never familiar with. But, as we keep being reminded, this is the new normal. This is the world we created. Yet we also have the opportunity to create something else.

Katja Forbes

Managing director of Designit, Australia and New Zealand

Should your business go back to the future?

In times of uncertainty, people gravitate towards the familiar. How can businesses capitalise on this to overcome the recessionary conditions brought on by COVID? Craig Flanders explains.

Craig Flanders

CEO, Spinach

Sign in