Atlassian has given up on its Stride and HipChat team chat products, entering into a partnership with rival company Slack.
Stride, which was only launched last September, will be discontinued alongside HipChat, with Slack having purchased the IP for these products for an undisclosed sum.
Users of these Atlassian products have been offered a “migration path” to change over to Slack.
In return, Atlassian is making what Slack CEO Stewart Butterfield described as a “small but symbolically important investment in Slack.”
“We share a vision of simplifying and automating the enormous effort that teams everywhere expend just to stay aligned, coordinated and productive. Hundreds of thousands of teams are already using Slack with JIRA, Confluence, Bitbucket, Trello, etc. — this will have a big impact,” Butterfield tweeted.
The partnership will help tighten Slack’s grip on the market, just days after Microsoft launched its free version of Teams.
VP of product management at Atlassian, Joff Redfern, praised Slack’s dominance in the collaborative software market.
“Over the past year, however, the market in real-time communications has changed pretty dramatically. And throughout that change, one product has continued to stand out from the others: Slack. While we’ve made great early progress with Stride, we believe the best way forward for our customers and for Atlassian is to enter into a strategic partnership with Slack,” he said.
“Even with this change, we are not abandoning our original vision. We believe that this partnership is the best way to advance our mission to unleash the potential of every team.”
The move will also see both companies “deepen” existing integrations of products.
Atlassian co-CEO Mike Cannon-Brookes paid tribute to his staff. "Shout out to all of the Atlassians who worked their asses off building Stride + Hipchat," he tweeted. "We built a great product."
No announcement has been made with regards to staffing.
News of the new partnership saw Atlassian’s shares jump 10% during Friday’s session, one analyst labelling the deal as “logical, impressive and frankly brilliant.”
But not everyone is as impressed, with a number of Atlassian users taking to the community forum to vent their frustration.
Users of the on-premise HipChat look as though they will be the most impacted.
“What the hell are on-premise customers supposed to do?! We just implemented and invested in this app! We're building apps in-house for our own purposes. We have zero ability to use Cloud services of ANY type. You are offering ZERO alternatives,” one user said.
“I cannot believe you'd lead us on and tell us that you were going to continue investing in HipChat.”
Stride and HipChat will be officially discontinued after 15 February 2019.