Slack Has Raised Our Charges by $195k Per Year
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A nonprofit organization, Hack Club, is facing a $195k/year price increase from Slack, prompting a discussion about the vendor lock-in and alternatives to Slack.
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I’m curious now, what’s the largest company that’s clearly passing up additional revenue because they prefer to say, “nah we’re good. The current business model makes us enough money.”
Thanks for the heads-up -- I'll pass.
Same with private VC/PE held companies. The board will replace the C-Suite if they aren't maximizing value.
You'd need to find a company which is huge but privately held by a group of people with only good intentions.
* Fiduciary duty to act in shareholders' interests. This is not the same thing as "maximize profits".
Maximizing profits makes the stock price go up. That benefits the C-suite. Because they're paid in stock.
The board designs their compensation package that way because they figure "number go up" is the easiest way to show they're acting in shareholders' interests.
I'm reading this book because, well, that's the kind of place I'd like to work. I think it makes sense to get a feel for how these places think, in order to really identify job opportunities
Edit: here's a Wikipedia page on the topic https://en.wikipedia.org/wiki/Hidden_champions
Strix became less hidden for me personally after listening to The Life Scientific interview with John Taylor [1]. There is plenty of fascinating information, probably because Jim Al-Khalili is a great scientific interviewer. Recently, I recalled it in the context of AI, self-driving, and safety. Strix controllers have a second level of protection if the main automatic shut-off circuit fails. That’s probably why we never hear of fires or other incidents due to a failed Strix controller.
[1] https://www.bbc.co.uk/programmes/b0b42z87
In some sense, what seems important is a business culture that has a mission or meaning to exist other than make shareholders money. I'd wager their employees will absolutely geek out about what the companies do throughout the organization. A lot of corporations these days, once you get above a couple of layers of management, is all fluff. I can't think of the last time I talked to a mid-level or above "engineering" manager in a tech company about any nuanced or interesting discussion about technology.
>By 2019, Deng had turned his attention to consumer goods. Pool robots, though low-profile, offered untapped potential, especially in markets like the US, where high labor costs made automation more appealing.
>“For what these machines can do today, they should cost USD 300–400,” he said. “That’s already the cap. Anything higher is just an ‘IQ tax,’ unless the cleaning function actually gets significantly better.”
The problem is that you want other people to fund your goodness.
Technology allowed companies to expand and centralize on a national scale, and capital pushed that to the conclusion we're at now, where there are a few gigantic players (at most) and almost all recourse against bad faith has been precluded. Nowadays if a customer is taken advantage of, they can't drive 5 extra minutes in the opposite direction and take their business elsewhere, or shame the owner in the local paper. Only impenetrable monoliths remain.
Frankly, we should all have learned by now after example upon example of this bait and switch type behavior being pulled on us. They lure the children into their windowless panel van with the candy of a cool offering and then violate us once they’ve slammed the doors shut and have us captured. Why are we still falling for this trap of becoming dependent on these hosted services?
Is it laziness? Lack of competence? Comfort? Stupidity? Foolishness? After shooting ourselves in the feet several times whose fault are these types of things? We know the predators will predate … Why do we still wander into their jaws?
We know there are open source Slack alternatives. Is it education? Is it naive contract terms? What makes us so foolish?
High time preference. The free stuff is here today, and the pain will only come much later, so I can disregard it for now.
Their "threads" feature was also great: it was just like replies in Discord (all go into the channel) but you could open up the thread to get it isolated. Worked way better than slack replies which just devolve instantly into you losing all track and messages can't be found again.
I desperately wish Discord worked like this. As you say, current threads just shove away conversation and it's quickly lost.
My question (and pcthrowaway's) response is about what happens when you send a message inside a thread without replying to a message. I was wondering if it would be sent into the main channel, with no context, which would be confusing.
Afterwards, all responses sent in the thread are part of that thread. By default, on versions of Mattermost in the last year, these are visually separated from the channel, almost like a sub-channel that you can reply in. In the web app, the thread is off to the side of the main channel.
Responses in the thread do not show up on the channel; the top-level messages which have replies in-thread say the number of messages in that thread, which you can click on to open the thread. Messages sent to the main channel go to the main channel, but in the thread view, you're not necessarily replying to any one specific message, just posting a message in the thread.
I think there are other ways to view this though, so based on user settings it may also be possible to see threaded responses in the main channel (I haven't experimented with the alternate view settings though)
Not sure if that answers your question, but you can always join the mattermost official server and try it out yourself if you're curious: https://community.mattermost.com/
No, I'm just focusing on reply-chains and their interactions with threads because the former often leads to the latter, and I misunderstood the original comment.
This clarifies things though and is indeed exactly how Discord does it. I just wish there was a better way of handling threads - it seems to me that it's too easy for a conversation to be shoved into a thread and then be forgotten if you're not actively looking for it. That's fine in some cases, like work discussions, but not for say a social community.
Thanks for the responses!
Oh dear. It sounds like they made it like slack/discord which I hate.
And wasn’t the free version made kind of unusable through very limited retention like a decade ago?
If they determined that Hacker Club violated some terms of the nonprofit demanding they move to regular or be kicked out seems not as bad
Although frankly this is a good lesson for a bunch of young hackers to learn.
If slack found out that the company isn't really a non-profit, or that it violated the requirements in the non-profit agreement (such as promoting discrimination) it would justify a demand for immediate payment in my opinion.
Not defending Slack / Salesforce. You just can't deal with them with that level of naivety.
We use Zulip (https://zulip.org/) for our corporate chat, and we've never looked back. It's been good, and it's fully open source. We self-host, but paid hosting is easy to get too if you want.
At this point anyone looking to avoid a price hike like the one described above should probably consider something they'll have more control over.
I'd probably go with my own Mastodon server if I was a company that needed any such communication tool. I'm sure there are other alternatives out there too
That was not very obvious from their landing page!
Well in that case, carry on!
It says in bold letters:
"Your data is yours!
For ultimate control and compliance, self-host Zulip’s 100% open-source software"
I guess I've been on the internet too long, my brain automatically blacks certain language out, like a biological spam filter.
...You could go to the Slack website right now and see? We're on the internet. It's all on the internet. We can literally just check.
Doesn't seem to mention anything about being open source, anything privacy-related, data, or hosting.
> When you self-host Zulip, you get the same software as our Zulip Cloud customers.
> Unlike the competition, you don't pay for SAML authentication, LDAP sync, or advanced roles and permissions. There is no “open core” catch — just freely available world-class software.
The optional pricing plans for self-hosted mention that you are buying email and chat support for SAML and other features, but I don't see where they're charging for access to SAML on self-hosted Zulip.
you might notice it's 100% free software
now there is always the question how a company used Slack, e.g. just some ad-hoc fast communication channels like "general", "food", "events" or a in depth usage with a lot of in-depth usage, including video conferences, channels for every squad/project/sprint/whatever
but the relevant thing to realize is that there is subtle but very relevant difference between a "social network" focused tool and a work place communications focused tool
and Mastodon has a very clear focus on the former while Zulip has a clear focus on the later
It's not only guys named Larry who are lawnmowers. Don't stick your hand in. *Own* your shit. Be suspicious of anyone who tries to convince you not to. If it's "easy" it might come back to bite you.
Even if some self-hostable software stack does a rug pull and changes the license, you just don't have to update. You can go log into the database and export to whatever format you want.
It was things like "internally hosted wikis were too hard to use for non-technical staff", "even though they work, the internal apps are old", "we want something that is standard", "we can't fall behind the other firms". The point about cloud provider apps all being familiar is valid but none of this stuff was that hard. It felt like the reason we switched (apart from persistent rumors about deals between sales teams) was because executives decided our internal apps lacked a cool factor. So good luck convincing non-technical executives that the cloud apps they are accustomed to seeing shouldn't be used.
Yeah? cool. Just get microsoft's cloud suite, its standard across non-cool companies.
Life is not worth living bikeshedding about chat apps.
Except the software is often pretty annoying. And even in 2025, MS will still randomly eat random files and the auto recovery still doesn’t work reliably.
its not the amazing stack when i worked at $startup, but also we dont really spend any time futzing with it.
Microsoft releases a new feature, we get it. cool.
Eventually this leads to pressure to give them newer/better tools
Sometimes, these nontechnical users are dealing with problems as real power users that technical users may not see - there really might be a better way to do something and they may have already seen it at another company or something like that
It also happens that something might be working great but looks really dated and right or not, it can give new employees a bad impression
Still another thing is of course that sometimes someone is just throwing a hissy fit and wants something for no good reason but they somehow get the powers that be to listen to them
I’m dealing with this now - everyone is going out and buying AI tools because there is so much pressure to have AI tools and everyone feels like they are falling behind if they don’t go out and buy 10 task-specific AI tools
All that is to say that it could be that those users you referred to were facing problems that you may have been too far removed from the business to understand, it’s not a knock on you, it happens. It’s also possible they just wanted something new and shiny. The pressure to do that kind of stuff is real - I can’t imagine forcing people off of slack, for example
I would very much understand it if the reasons given were like "We miss the following capabilities that our competitors have: ...", or "We have trouble interoperating with key partners", etc. These would be actually good reasons to pay more, and risk more.
I don’t think this phenomenon is unique to software - there are people who redo their kitchens every year because they can and people who are doing it for the first time in 30 years - it’s just what it is
Enterprise software—software bought by people who don't have to use it—is as a rule abysmal. My model of how this happens is that there are large barriers to entry, and actually working well is not one of them, because the guy signing the PO doesn't have visibility into whether they work well or not. I don't know what the barriers are, but I suspect they include hiring people who already know CTOs, bribing ignorant shills like the Gartner Group, and having a convincing appear you'll still be in business in 10 years.
Most SaaS companies can disable data exports at any time. Even if you’re regularly backing up that data when they disable it you need to instantly move to a new service or there’s going to be a gap.
Obvious caveat here - the law of course must be made for monopolies.
Even a daily export won't save you from the export functionality disappearing with zero notice, because it's really disruptive to try and stop using a service with zero notice. Your company will be left with several weeks if not months of un-exported data.
They can be sneaky about the removal, just let it "break" and it might be months before you are sure they aren't going to fix it.
A large group of hackers likely can figure out a way to export it all...
Honestly, it's hard to feel too bad for people making the choices to use this stuff without considering an escape plan or safety net and then getting burned by it.
You choose to not get fire insurance on your house, your house burned down... like yeah, that sucks, I do genuinely feel bad that happened to you. But also, you took a risk presumably to save money and it bit you in the ass, and now you unfortunately have to pay the price.
Sometimes SaaS really does make the most sense. Having your people doing part-time, non-core operations of an important service they are not experts in can be a huge distraction (and this is a hard thing for us tech people to admit!).
But you need to go into SaaS thinking about how you'd get out: maybe that's data export, maybe it's solid contracts. If they don't offer this or you can't afford it... well, don't use it. Or take the risk and just pray your house doesn't burn down.
Part of being in business is anticipating risks and having a plan -- which could be deciding to accept the risk. What sucks is you're implicitly accepting the risk of anything you didn't think of, even if the seller is quite aware or even counting on it. It's a harsh lesson when something this happens.
Slack are leveraging their position and it makes them assholes (or capitalists, I suppose, depending on your point of view), but you can't control what they do. You can only control your choices.
If the company charged 10% of X for some time to prove the value (or “lock you in” if you prefer), then great, you got a subsidized ride for some time.
I do think platforms should offer data export, and I think customers should demand it, and I am open to the law requiring it.
But ultimately I don’t have a ton of sympathy for the “suddenly this tool I assumed would be underpriced forever actually wants to charge what I think it’s worth” position.
I know, unpopular opinion, roast away. Or tell me why any company should assume its suppliers will never exercise their leverage and take that consumer surplus right back.
Everyone starts off with a price that's too low because you want a "no" from a customer to be "no, because your product isn't useful to me" and not "no, I don't have that kind of money". (Maybe this is a flaw and generalizes to generative AI. I like Github Copilot for $0/month. I would not like it for $200/month. If it costs them $200/month to run it, then there is a big problem with the business model.)
The reality no one wants to admit - most software companies have no moat whatsoever if they aren’t allowed to be anti competitive.
I’ve nothing against self hosting, but it isn’t necessarily cheaper than saas just because you can get amazing amounts of hardware for what amounts to a rounding error in accounting.
That rounding error in accounting is also a monthly charge, and it sometimes happens that you get a spontaneous demand for $50K in a week and $200K in the next year. That could buy you enough hardware to run a chat for every school hacking club in the world, and a sysadmin to manage it.
It's certainly true that some providers are worse than others, but I don't think any of them are "safe" in the long term. Self-hosting is one solution, but even apart from that, a competitive market of multiple providers makes rugpulls like this less likely, because in such an environment even people who are not directly screwed may decide to jump ship to avoid being screwed later.
Think of it, this example alone is a $250k risk and it seems from this point forward that $250k risk is significantly high and the impact is major, considering there’s a short decision fuse on the extortion.
Would you be ready to retain data; set up, deploy, transition, restore, and scale alternatives to Slack within a week or your institution be forced to pay such blackmail/extortion?
I feel like the perception of money is distorted in tech circles. To me $10,000 is a pretty massive sum of money. For most people $250,000 represents a life-changing amount of money.
However the value of money is quite absolute, it's dictated by the exchange rate after all. If $250,000 is nothing more than "pretty big", then your perception is either quite distorted or the rate of inflation is much more severe than I understood it to be.
You are conflating price and the value. I assure you that to a billionaire, $250,000 is of nearly no value at all.
Everything is relative.
I understand that you could also take that money and move somewhere it would last for a long long time.
Insisting that money is absolute does not seem accurate to me. That is sounds like making the claim that the things you could buy with that money are the same everywhere.
My previous employer had daily revenue in the area of $10 million.
$250k barely registers. They've got more pocket change than that lost in their couch.
Anything that's less than an hour worth of revenue is a small expenditure. To them, this extortion would probably elicit the equivalence of a shrug, or at most a mildly annoyed grunt
For 99.9% of nonprofits, their annual budgets are in the single digit thousands or less. A sudden $250k bill is fatal.
Honestly just a heuristic that says any company simply on principle would rather leave than eat a 4000% price increase.
N customers * X% drop out rate * $200K > N * $5K
Then its a profitable operation for slack.
They were currently being paid some amount, and got their product in front of the next generation of Software Engineers. People who hopefully will like the product, and grow up to evangelize it in their workplace.
Instead now, they'll get paid $0 (because obviously the non-profit can't afford the new price) and they won't get their product in front of those students.
See similar example of Microsoft losing mindshare with the next generation in the early/mid 2000's by locking down paid access to all their developer tooling/documentation.
$50k today + no more business vs 10 yearsx$5k business
If you really need to juice the quarterly numbers, it is a strategy
How was the price computed? If Slack charging per user, how did this organization have so many users? Why is their new provider more favorable in pricing?
If Slack was previously offering a nonprofit discount, what happened to it? Did they decide that this organization was ineligible, or are they shutting it down in general?
They spent multiple paragraphs complaining about Slack, and gave Mattermost a brief mention in a single sentence. I'd enjoy hearing praise about Mattermost if they're willing to provide it as well.
Imagine your landlord increased the rent by 4000% and it's due in 5 days or you're out on the street.
Sure, they have the right to increase their prices, but there should be at least a month notice for something like this.
A move this aggressive (e.g. pushing companies on Slack to pay 10x more, immediately, or get lost) is not isolated and probably the result of institutional forces. It's not like the random sales person in charge of this decided to be destructive. Salesforce the company is getting squeezed and this is one of the outgrowths of that pressure. And it speaks to the insane dysfunction that must be taking place in the bowels of Salesforce right now, I'm sure it's crazy.
[1] https://qz.com/salesforce-beats-q2-earnings-ai
[0] https://www.latimes.com/business/story/2025-09-02/salesforce...
[1] https://www.fastcompany.com/91359024/salesforce-using-ai-art...
Slack can probably charge an extra $10/month/user for this.
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