It’s not typically you see a longtime firm burn via three CEOs in lower than a 12 months. However via circumstances past its management, that’s what has occurred at Slack, the corporate Salesforce acquired in 2020 for $28 billion. In November, Slack launched Denise Dresser as the newest particular person to occupy the nook workplace.
Dresser acknowledges it wasn’t simple to step into the position underneath these circumstances, however she is settling in. “You understand, like something, it’s all the time arduous to step into any new firm and do it in a manner that’s swish, however I believe the staff gave me loads of teaching, and we actually noticed the imaginative and prescient collectively,” Dresser instructed TechCrunch.
She grew up within the suburbs outdoors of Boston, was educated on the College of Massachusetts at Amherst the place she studied accounting and labored at Salesforce for the final dozen years in varied govt roles.
Her predecessor, Lidiane Jones, was simply 10 months into the job when she introduced she was leaving to be CEO at Bumble, pushed by the attract of operating a stand-alone public firm. Jones herself had changed firm co-founder Stewart Butterfield when he introduced that he was leaving on the finish of 2022.
It’s tough changing a founder-CEO as Jones did. It could possibly be much more difficult to take over simply 10 months later for his successor, however some govt turnover is predicted within the years following an acquisition, says Arjun Bhatia, a William Blair analyst who follows Salesforce. “You need a secure management staff, in fact, and also you need somebody who’s specializing in it, however the CEO turnover we’ve seen is just not regarding at this level,” Bhatia instructed TechCrunch. “If that turns into extra recurring, actually that view may change, however I believe it’s a pure course after an acquisition like this for an organization like Slack to seek out its place contained in the Salesforce ecosystem.”
Dresser says that she’s merely constructing on what her predecessors did earlier than she bought there, whereas bringing her personal persona to the job. “I ask plenty of questions, and I undoubtedly am an accountant at coronary heart,” she stated. “So I wish to be organized and I’ll proceed that on, but it surely’s not prefer it’s a giant pull. I believe the muse is already there, and it’s an extremely well-run group.”
How has Slack fared at Massive CRM?
If you take a look at the value that Salesforce paid to personal Slack, even giving some leeway for 2020 inventory costs and the over-exuberance of the interval, it nonetheless looks like a attain. The idea on the time was that Slack could possibly be the communication layer on high of all of the enterprise software program that Salesforce sells. It’s nonetheless the hope, the truth is, however income development has slowed dramatically at Slack since its acquisition.
We don’t have actual income numbers as a result of Salesforce stopped reporting them final spring, but it surely does share the share of development from the prior 12 months. Development has slowed considerably from 46% YoY in Q32023 to only 16% in Q42024. For probably the most half, the development has been down — and it’s as much as Dresser to show that round.
Picture Credit: Salesforce
Slack might change this development by discovering new enterprise alternatives and protecting present clients pleased whereas on the identical time not being so intently tied to Salesforce that it loses clients who aren’t Salesforce-centric.
Dresser could also be caught between these seemingly conflicting necessities, says Brent Leary, principal analyst at CRM Necessities. He, too, has been monitoring Salesforce since its earliest days. “She’s bought to have the ability to work out what the best steadiness is between Slack as a standalone model that continues to draw non-Salesforce clients, whereas enabling Salesforce clients to make use of Slack in all places throughout the platform they should collaborate,” Leary stated.
However Dresser doesn’t suppose it’s all that sophisticated. “I don’t know if I believe it’s that powerful. I believe it was the unique imaginative and prescient when the 2 firms got here collectively,” she stated. “I believe there’s an actual recognition that there’s one thing very particular right here that we wish to nurture and proceed. And I believe that’s been a reasonably constant theme from the very starting.”
The potential of generative AI
One huge change she must handle has been the event of generative AI in software program, in Slack and throughout the Salesforce household of merchandise. Dresser says that AI is a pure match for Slack as a result of as a communications platform with a lot of embedded information, it’ll assist customers harness, perceive and discover information nuggets within the mass of data.
“When you concentrate on it from a higher-level perspective, Slack has a lot of the world’s conversations occurring in unstructured information,” she stated. “After which you concentrate on Salesforce having this unimaginable set of buyer information, a few of the world’s most valued information. The chance to convey structured and unstructured information into Slack and combine these actually creates this highly effective platform for the long run.”
All of that relies upon, in fact, on execution: You possibly can’t simply sprinkle AI fairy mud on a product and hope it’s going to work. However Dresser claims that AI helped her rise up to hurry in her new place way more rapidly than would have been doable with out having the ability to entry summaries of lengthy product threads. Summarization is a giant promoting level for generative AI, and utilizing it to avoid wasting time understanding lengthy conversational threads could possibly be a giant use case. However once more, it relies on the standard of the summaries.
One other huge situation Dresser faces is how you can compete with Microsoft, which brings Groups to the desk mixed with Workplace 365, Dynamics 365, and AI within the type of Microsoft Copilot rolled out throughout the platform, says J. P. Gownder, an analyst at Forrester Analysis. “It’s logical for Slack to attempt to increase its person base by integrating Salesforce extra intently, but it surely should be cautious to not alienate present clients, who’re tremendously loyal to what’s provided at the moment. Within the meantime, Microsoft Groups is a behemoth that has an opportunity to seize much more minutes by way of Copilot,” Gownder instructed TechCrunch.
However Bhatia factors out that Microsoft nonetheless works greatest contained in the Microsoft ecosystem, and Slack might have a bonus in that regard. “Microsoft doesn’t have that interoperability play as a lot. Their benefit by far is distribution. And two huge benefits that Slack has of their market are interoperability and ease of use,” he stated.
Another diploma of issue for Dresser is that the remaining Slack co-founder, CTO Cal Henderson, left on the starting of March, changed by none aside from Salesforce co-founder and CTO Parker Harris. Though Harris brings a protracted historical past of constructing Salesforce, Slack is shedding an individual who has a deep understanding of Slack’s technical underpinnings.
Dresser actually understands that she faces these challenges forward, that she must win over workers and clients and discover a technique to hold Slack rising and important contained in the huge Salesforce ecosystem. However she says her position is actually about making human connections, and the remainder will work itself out.
“I attempt to simply assist folks perceive that I’m right here as a result of I’m deeply, deeply captivated with what we will do for the world, for our customers, and our workers as effectively at Slack and the broader Salesforce — and I wouldn’t be right here if I wasn’t.”
