Nov
04
2019
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Microsoft Teams gets Yammer integration, secure private channels and more

You’re forgiven if you thought Yammer — Microsoft’s proto-Slack, not quite real-time chat application — was dead. It’s actually still alive (and well) — and still serves a purpose as a slower-moving social network-like channel for company and team-wide announcements. Today, Microsoft announced that, among other updates, it will offer a Yammer integration in Teams, its Slack competitor. Yammer in Teams will live in the left-hand sidebar.

With this, Microsoft’s two main enterprise communications platforms are finally growing together and will give users the option to use Teams for fast-moving chats and Yammer as their enterprise social network in the same way Facebook messenger and its news feed complement each other.

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Oh, and Yammer itself has been redesigned, too, using Microsoft’s Fluent Design System across all platforms. And Microsoft is also building it into Outlook, too, to let you respond to messages right from your inbox. This new Yammer will roll out as a private preview in December.

With this update, Teams is getting a number of other new features, too. These include secure private channels, multi-window chats and meetings, pinned channels and task integration with Microsoft To Do and Planner (because having one to-do app is never enough). Microsoft is also making a number of enhancements to Teams Rooms, with upcoming support for Cisco WebEx and Zoom meetings, the Teams Phone System, which is getting emergency calling, and the IT management features that help admins keep Teams secure.

A Teams client for Linux is also in the works and will be available in public preview later this year.

Nov
04
2019
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You can now ask Excel questions about your data

Microsoft today announced an update to Excel that brings natural language queries to the venerable spreadsheet tool. Available now to Office Insiders, this new feature allows you to talk to Excel like you’re talking to a person, and get quick answers to your queries without having to write a query.

“Natural language query is another step toward making data insights and visualization more approachable and accessible to users with various levels of Excel experience,” Microsoft explains. “Novice users will not need to know how to write a formula to gain useful insights from their data, while power users will be able to save time by automating the data discovery process by simply asking the right questions and quickly adding charts and tables they need for better and faster decisions.”

It’s worth noting that Google already offers similar features in Google Sheets. In my experience, Google sometimes does a pretty good job at finding data but also regularly fails to find even a single relevant data point, so it remains to be seen how good Excel is compared to that.

Today’s announcement is one in a series of recent launches for Excel that brought a number of new machine learning smarts to the spreadsheet. Among those is Excel’s ability to better understand your entries and provide you with additional information about stocks, geographical data and more.

Nov
04
2019
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Microsoft launches Power Virtual Agents, its no-code bot builder

Microsoft today announced the public preview of its Power Virtual Agents tool, a new no-code tool for building chatbots that’s part of the company’s Power Platform, which also includes the Microsoft Flow automation tool, which is being renamed to Power Automate today, and Power BI.

Built on top of Azure’s existing AI smarts and tools for building bots, Power Virtual Agents promises to make building a chatbot almost as easy as writing a Word document. With this, anybody within an organization could build a bot that walks a new employee through the onboarding experience, for example.

“Power Virtual Agent is the newest addition to the Power Platform family,” said Microsoft’s Charles Lamanna in an interview ahead of today’s announcement. “Power Virtual Agent is very much focused on the same type of low-code, accessible to anybody, no matter whether they’re a business user or business analyst or professional developer, to go build a conversational agent that’s AI-driven and can actually solve problems for your employees, for your customers, for your partners, in a very natural way.”

Power Virtual Agents handles the full lifecycle of the bot-building experience, from the creation of the dialog to making it available in chat systems that include Teams, Slack, Facebook Messenger and others. Using Microsoft’s AI smarts, users don’t have to spend a lot of time defining every possible question and answer, but can instead rely on the tool to understand intentions and trigger the right action. “We do intent understanding, as well as entity extraction, to go and find the best topic for you to go down,” explained Lamanna. Like similar AI systems, the service also learns over time, based on feedback it receives from users.

One nice feature here is that if your setup outgrows the no-code/low-code stage and you need to get to the actual code, you’ll be able to convert the bot to Azure resources as that’s what’s powering the bot anyway. Once you’ve edited the code, you obviously can’t take it back into the no-code environment. “We have an expression for Power Platform, which is ‘no cliffs.’ […] The idea of ‘no cliffs’ is that the most common problem with a low-code platform is that, at some point, you want more control, you want code. And that’s frequently where low-code platforms run out of gas and you really have issues because you can’t have the pro dev take it over, you can’t make it mission-critical.”

The service is also integrated with tools like Power Automate/Microsoft Flow to allow users to trigger actions on other services based on the information the chatbot gathers.

Lamanna stressed that the service also generates lots of advanced analytics for those who are building bots with it. With this, users can see what topics are being asked about and where the system fails to provide answers, for example. It also visualizes the different text inputs that people provide so that bot builders can react to that.

Over the course of the last two or three years, we went from a lot of hype around chatbots to deep disillusionment with the experience they actually delivered. Lamanna isn’t fazed by that. In part, those earlier efforts failed because the developers weren’t close enough to the users. They weren’t product experts or part of the HR team inside a company. By using a low-code/no-code tool, he argues, the actual topic experts can build these bots. “If you hand it over to a developer or an AI specialist, they’re geniuses when it comes to developing code, but they won’t know the details and ins and outs of, say, the shoe business — and vice versa. So it actually changes how development happens.”

Sep
29
2019
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Why is Dropbox reinventing itself?

According to Dropbox CEO Drew Houston, 80% of the product’s users rely on it, at least partially, for work.

It makes sense, then, that the company is refocusing to try and cement its spot in the workplace; to shed its image as “just” a file storage company (in a time when just about every big company has its own cloud storage offering) and evolve into something more immutably core to daily operations.

Earlier this week, Dropbox announced that the “new Dropbox” would be rolling out to all users. It takes the simple, shared folders that Dropbox is known for and turns them into what the company calls “Spaces” — little mini collaboration hubs for your team, complete with comment streams, AI for highlighting files you might need mid-meeting, and integrations into things like Slack, Trello and G Suite. With an overhauled interface that brings much of Dropbox’s functionality out of the OS and into its own dedicated app, it’s by far the biggest user-facing change the product has seen since launching 12 years ago.

Shortly after the announcement, I sat down with Dropbox VP of Product Adam Nash and CTO Quentin Clark . We chatted about why the company is changing things up, why they’re building this on top of the existing Dropbox product, and the things they know they just can’t change.

You can find these interviews below, edited for brevity and clarity.

Greg Kumparak: Can you explain the new focus a bit?

Adam Nash: Sure! I think you know this already, but I run products and growth, so I’m gonna have a bit of a product bias to this whole thing. But Dropbox… one of its differentiating characteristics is really that when we built this utility, this “magic folder”, it kind of went everywhere.

Aug
26
2019
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Nvidia and VMware team up to make GPU virtualization easier

Nvidia today announced that it has been working with VMware to bring its virtual GPU technology (vGPU) to VMware’s vSphere and VMware Cloud on AWS. The company’s core vGPU technology isn’t new, but it now supports server virtualization to enable enterprises to run their hardware-accelerated AI and data science workloads in environments like VMware’s vSphere, using its new vComputeServer technology.

Traditionally (as far as that’s a thing in AI training), GPU-accelerated workloads tend to run on bare metal servers, which were typically managed separately from the rest of a company’s servers.

“With vComputeServer, IT admins can better streamline management of GPU accelerated virtualized servers while retaining existing workflows and lowering overall operational costs,” Nvidia explains in today’s announcement. This also means that businesses will reap the cost benefits of GPU sharing and aggregation, thanks to the improved utilization this technology promises.

Note that vComputeServer works with VMware Sphere, vCenter and vMotion, as well as VMware Cloud. Indeed, the two companies are using the same vComputeServer technology to also bring accelerated GPU services to VMware Cloud on AWS. This allows enterprises to take their containerized applications and from their own data center to the cloud as needed — and then hook into AWS’s other cloud-based technologies.

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“From operational intelligence to artificial intelligence, businesses rely on GPU-accelerated computing to make fast, accurate predictions that directly impact their bottom line,” said Nvidia founder and CEO Jensen Huang . “Together with VMware, we’re designing the most advanced and highest performing GPU- accelerated hybrid cloud infrastructure to foster innovation across the enterprise.”

Aug
21
2019
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Splunk acquires cloud monitoring service SignalFx for $1.05B

Splunk, the publicly traded data processing and analytics company, today announced that it has acquired SignalFx for a total price of about $1.05 billion. Approximately 60% of this will be in cash and 40% in Splunk common stock. The companies expect the acquisition to close in the second half of 2020.

SignalFx, which emerged from stealth in 2015, provides real-time cloud monitoring solutions, predictive analytics and more. Upon close, Splunk argues, this acquisition will allow it to become a leader “in observability and APM for organizations at every stage of their cloud journey, from cloud-native apps to homegrown on-premises applications.”

Indeed, the acquisition will likely make Splunk a far stronger player in the cloud space as it expands its support for cloud-native applications and the modern infrastructures and architectures those rely on.

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Ahead of the acquisition, SignalFx had raised a total of $178.5 million, according to Crunchbase, including a recent Series E round. Investors include General Catalyst, Tiger Global Management, Andreessen Horowitz and CRV. Its customers include the likes of AthenaHealth, Change.org, Kayak, NBCUniversal and Yelp.

“Data fuels the modern business, and the acquisition of SignalFx squarely puts Splunk in position as a leader in monitoring and observability at massive scale,” said Doug Merritt, president and CEO, Splunk, in today’s announcement. “SignalFx will support our continued commitment to giving customers one platform that can monitor the entire enterprise application lifecycle. We are also incredibly impressed by the SignalFx team and leadership, whose expertise and professionalism are a strong addition to the Splunk family.”

Aug
19
2019
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Join The New Stack for Pancake & Podcast with Q&A at TC Sessions: Enterprise

Popular enterprise news and research site The New Stack is coming to TechCrunch Sessions: Enterprise on September 5 for a special Pancake & Podcast session with live Q&A, featuring, you guessed it, delicious pancakes and awesome panelists!

Here’s the “short stack” of what’s going to happen:

  • Pancake buffet opens at 7:45 am on Thursday, September 5 at TC Sessions: Enterprise
  • At 8:15 am the panel discussion/podcast kicks off; the topic, “The People and Technology You Need to Build a Modern Enterprise
  • After the discussion, the moderators will host a live audience Q&A session with the panelists
  • Once the Q&A is done, attendees will get the chance to win some amazing raffle prizes

You can only take part in this fun pancake-breakfast podcast if you register for a ticket to  TC Sessions: Enterprise. Use the code TNS30 to get 30% off the conference registration price!

Here’s the longer version of what’s going to happen:

At 8:15 a.m., The New Stack founder and publisher Alex Williams takes the stage as the moderator and host of the panel discussion. Our topic: “The People and Technology You Need to Build a Modern Enterprise.” We’ll start with intros of our panelists and then dive into the topic with Sid Sijbrandij, founder and CEO at GitLab, and Frederic Lardinois, enterprise reporter and editor at TechCrunch, as our initial panelists. More panelists to come!

Then it’s time for questions. Questions we could see getting asked (hint, hint): Who’s on your team? What makes a great technical team for the enterprise startup? What are the observations a journalist has about how the enterprise is changing? What about when the time comes for AI? Who will I need on my team?

And just before 9 a.m., we’ll pick a ticket out of the hat and announce our raffle winner. It’s the perfect way to start the day.

On a side note, the pancake breakfast discussion will be published as a podcast on The New Stack Analysts

But there’s only one way to get a prize and network with fellow attendees, and that’s by registering for TC Sessions: Enterprise and joining us for a short stack with The New Stack. Tickets are now $349, but you can save 30% with code TNS30.

Aug
19
2019
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Ally raises $8M Series A for its OKR solution

OKRs, or Objectives and Key Results, are a popular planning method in Silicon Valley. Like most of those methods that make you fill in some form once every quarter, I’m pretty sure employees find them rather annoying and a waste of their time. Ally wants to change that and make the process more useful. The company today announced that it has raised an $8 million Series A round led by Accel Partners, with participation from Vulcan Capital, Founders Co-op and Lee Fixel. The company, which launched in 2018, previously raised a $3 million seed round.

Ally founder and CEO Vetri Vellore tells me that he learned his management lessons and the value of OKR at his last startup, Chronus. After years of managing large teams at enterprises like Microsoft, he found himself challenged to manage a small team at a startup. “I went and looked for new models of running a business execution. And OKRs were one of those things I stumbled upon. And it worked phenomenally well for us,” Vellore said. That’s where the idea of Ally was born, which Vellore pursued after selling his last startup.

Most companies that adopt this methodology, though, tend to work with spreadsheets and Google Docs. Over time, that simply doesn’t work, especially as companies get larger. Ally, then, is meant to replace these other tools. The service is currently in use at “hundreds” of companies in more than 70 countries, Vellore tells me.

One of its early adopters was Remitly . “We began by using shared documents to align around OKRs at Remitly. When it came time to roll out OKRs to everyone in the company, Ally was by far the best tool we evaluated. OKRs deployed using Ally have helped our teams align around the right goals and have ultimately driven growth,” said Josh Hug, COO of Remitly.

Desktop Team OKRs Screenshot

Vellore tells me that he has seen teams go from annual or bi-annual OKRs to more frequently updated goals, too, which is something that’s easier to do when you have a more accessible tool for it. Nobody wants to use yet another tool, though, so Ally features deep integrations into Slack, with other integrations in the works (something Ally will use this new funding for).

Since adopting OKRs isn’t always easy for companies that previously used other methodologies (or nothing at all), Ally also offers training and consulting services with online and on-site coaching.

Pricing for Ally starts at $7 per month per user for a basic plan, but the company also offers a flat $29 per month plan for teams with up to 10 users, as well as an enterprise plan, which includes some more advanced features and single sign-on integrations.

Aug
15
2019
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How Facebook does IT

If you have ever worked at any sizable company, the word “IT” probably doesn’t conjure up many warm feelings. If you’re working for an old, traditional enterprise company, you probably don’t expect anything else, though. If you’re working for a modern tech company, though, chances are your expectations are a bit higher. And once you’re at the scale of a company like Facebook, a lot of the third-party services that work for smaller companies simply don’t work anymore.

To discuss how Facebook thinks about its IT strategy and why it now builds most of its IT tools in-house, I sat down with the company’s CIO, Atish Banerjea, at its Menlo Park headquarter.

Before joining Facebook in 2016 to head up what it now calls its “Enterprise Engineering” organization, Banerjea was the CIO or CTO at companies like NBCUniversal, Dex One and Pearson.

“If you think about Facebook 10 years ago, we were very much a traditional IT shop at that point,” he told me. “We were responsible for just core IT services, responsible for compliance and responsible for change management. But basically, if you think about the trajectory of the company, were probably about 2,000 employees around the end of 2010. But at the end of last year, we were close to 37,000 employees.”

Traditionally, IT organizations rely on third-party tools and software, but as Facebook grew to this current size, many third-party solutions simply weren’t able to scale with it. At that point, the team decided to take matters into its own hands and go from being a traditional IT organization to one that could build tools in-house. Today, the company is pretty much self-sufficient when it comes to running its IT operations, but getting to this point took a while.

“We had to pretty much reinvent ourselves into a true engineering product organization and went to a full ‘build’ mindset,” said Banerjea. That’s not something every organization is obviously able to do, but, as Banerjea joked, one of the reasons why this works at Facebook “is because we can — we have that benefit of the talent pool that is here at Facebook.”

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The company then took this talent and basically replicated the kind of team it would help on the customer side to build out its IT tools, with engineers, designers, product managers, content strategies, people and research. “We also made the decision at that point that we will hold the same bar and we will hold the same standards so that the products we create internally will be as world-class as the products we’re rolling out externally.”

One of the tools that wasn’t up to Facebook’s scaling challenges was video conferencing. The company was using a third-party tool for that, but that just wasn’t working anymore. In 2018, Facebook was consuming about 20 million conference minutes per month. In 2019, the company is now at 40 million per month.

Besides the obvious scaling challenge, Facebook is also doing this to be able to offer its employees custom software that fits their workflows. It’s one thing to adapt existing third-party tools, after all, and another to build custom tools to support a company’s business processes.

Banerjea told me that creating this new structure was a relatively easy sell inside the company. Every transformation comes with its own challenges, though. For Facebook’s Enterprise  Engineering team, that included having to recruit new skill sets into the organization. The first few months of this process were painful, Banerjea admitted, as the company had to up-level the skills of many existing employees and shed a significant number of contractors. “There are certain areas where we really felt that we had to have Facebook DNA in order to make sure that we were actually building things the right way,” he explained.

Facebook’s structure creates an additional challenge for the team. When you’re joining Facebook as a new employee, you have plenty of teams to choose from, after all, and if you have the choice of working on Instagram or WhatsApp or the core Facebook app — all of which touch millions of people — working on internal tools with fewer than 40,000 users doesn’t sound all that exciting.

“When young kids who come straight from college and they come into Facebook, they don’t know any better. So they think this is how the world is,” Banerjea said. “But when we have experienced people come in who have worked at other companies, the first thing I hear is ‘oh my goodness, we’ve never seen internal tools of this caliber before.’ The way we recruit, the way we do performance management, the way we do learning and development — every facet of how that employee works has been touched in terms of their life cycle here.”

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Facebook first started building these internal tools around 2012, though it wasn’t until Banerjea joined in 2016 that it rebranded the organization and set up today’s structure. He also noted that some of those original tools were good, but not up to the caliber employees would expect from the company.

“The really big change that we went through was up-leveling our building skills to really become at the same caliber as if we were to build those products for an external customer. We want to have the same experience for people internally.”

The company went as far as replacing and rebuilding the commercial Enterprise Resource Planning (ERP) system it had been using for years. If there’s one thing that big companies rely on, it’s their ERP systems, given they often handle everything from finance and HR to supply chain management and manufacturing. That’s basically what all of their backend tools rely on (and what companies like SAP, Oracle and others charge a lot of money for). “In that 2016/2017 time frame, we realized that that was not a very good strategy,” Banerjea said. In Facebook’s case, the old ERP handled the inventory management for its data centers, among many other things. When that old system went down, the company couldn’t ship parts to its data centers.

“So what we started doing was we started peeling off all the business logic from our backend ERP and we started rewriting it ourselves on our own platform,” he explained. “Today, for our ERP, the backend is just the database, but all the business logic, all of the functionality is actually all custom written by us on our own platform. So we’ve completely rewritten our ERP, so to speak.”

In practice, all of this means that ideally, Facebook’s employees face far less friction when they join the company, for example, or when they need to replace a broken laptop, get a new phone to test features or simply order a new screen for their desk.

One classic use case is onboarding, where new employees get their company laptop, mobile phones and access to all of their systems, for example. At Facebook, that’s also the start of a six-week bootcamp that gets new engineers up to speed with how things work at Facebook. Back in 2016, when new classes tended to still have less than 200 new employees, that was still mostly a manual task. Today, with far more incoming employees, the Enterprise Engineering team has automated most of that — and that includes managing the supply chain that ensures the laptops and phones for these new employees are actually available.

But the team also built the backend that powers the company’s more traditional IT help desks, where employees can walk up and get their issues fixed (and passwords reset).

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To talk more about how Facebook handles the logistics of that, I sat down with Koshambi Shah, who heads up the company’s Enterprise Supply Chain organization, which pretty much handles every piece of hardware and software the company delivers and deploys to its employees around the world (and that global nature of the company brings its own challenges and additional complexity). The team, which has fewer than 30 people, is made up of employees with experience in manufacturing, retail and consumer supply chains.

Typically, enterprises offer their employees a minimal set of choices when it comes to the laptops and phones they issue to their employees, and the operating systems that can run on them tend to be limited. Facebook’s engineers have to be able to test new features on a wide range of devices and operating systems. There are, after all, still users on the iPhone 4s or BlackBerry that the company wants to support. To do this, Shah’s organization actually makes thousands of SKUs available to employees and is able to deliver 98% of them within three days or less. It’s not just sending a laptop via FedEx, though. “We do the budgeting, the financial planning, the forecasting, the supply/demand balancing,” Shah said. “We do the asset management. We make sure the asset — what is needed, when it’s needed, where it’s needed — is there consistently.”

In many large companies, every asset request is double guessed. Facebook, on the other hand, places a lot of trust in its employees, it seems. There’s a self-service portal, the Enterprise Store, that allows employees to easily request phones, laptops, chargers (which get lost a lot) and other accessories as needed, without having to wait for approval (though if you request a laptop every week, somebody will surely want to have a word with you). Everything is obviously tracked in detail, but the overall experience is closer to shopping at an online retailer than using an enterprise asset management system. The Enterprise Store will tell you where a device is available, for example, so you can pick it up yourself (but you can always have it delivered to your desk, too, because this is, after all, a Silicon Valley company).

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For accessories, Facebook also offers self-service vending machines, and employees can walk up to the help desk.

The company also recently introduced an Amazon Locker-style setup that allows employees to check out devices as needed. At these smart lockers, employees simply have to scan their badge, choose a device and, once the appropriate door has opened, pick up the phone, tablet, laptop or VR devices they were looking for and move on. Once they are done with it, they can come back and check the device back in. No questions asked. “We trust that people make the right decision for the good of the company,” Shah said. For laptops and other accessories, the company does show the employee the price of those items, though, so it’s clear how much a certain request costs the company. “We empower you with the data for you to make the best decision for your company.”

Talking about cost, Shah told me the Supply Chain organization tracks a number of metrics. One of those is obviously cost. “We do give back about 4% year-over-year, that’s our commitment back to the businesses in terms of the efficiencies we build for every user we support. So we measure ourselves in terms of cost per supported user. And we give back 4% on an annualized basis in the efficiencies.”

Unsurprisingly, the company has by now gathered enough data about employee requests (Shah said the team fulfills about half a million transactions per year) that it can use machine learning to understand trends and be proactive about replacing devices, for example.

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Facebooks’ Enterprise Engineering group doesn’t just support internal customers, though. Another interesting aspect to Facebook’s Enterprise Engineering group is that it also runs the company’s internal and external events, including the likes of F8, the company’s annual developer conference. To do this, the company built out conference rooms that can seat thousands of people, with all of the logistics that go with that.

The company also showed me one of its newest meeting rooms where there are dozens of microphones and speakers hanging from the ceiling that make it easier for everybody in the room to participate in a meeting and be heard by everybody else. That’s part of what the organization’s “New Builds” team is responsible for, and something that’s possible because the company also takes a very hands-on approach to building and managing its offices.

Facebook also runs a number of small studios in its Menlo Park and New York offices, where both employees and the occasional external VIP can host Facebook Live videos.

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Indeed, live video, it seems, is one of the cornerstones of how Facebook employees collaborate and help employees who work from home. Typically, you’d just use the camera on your laptop or maybe a webcam connected to your desktop to do so. But because Facebook actually produces its own camera system with the consumer-oriented Portal, Banerjea’s team decided to use that.

“What we have done is we have actually re-engineered the Portal,” he told me. “We have connected with all of our video conferencing systems in the rooms. So if I have a Portal at home, I can dial into my video conferencing platform and have a conference call just like I’m sitting in any other conference room here in Facebook. And all that software, all the engineering on the portal, that has been done by our teams — some in partnership with our production teams, but a lot of it has been done with Enterprise Engineering.”

Unsurprisingly, there are also groups that manage some of the core infrastructure and security for the company’s internal tools and networks. All of those tools run in the same data centers as Facebook’s consumer-facing applications, though they are obviously sandboxed and isolated from them.

It’s one thing to build all of these tools for internal use, but now, the company is also starting to think about how it can bring some of these tools it built for internal use to some of its external customers. You may not think of Facebook as an enterprise company, but with its Workplace collaboration tool, it has an enterprise service that it sells externally, too. Last year, for the first time, Workplace added a new feature that was incubated inside of Enterprise Engineering. That feature was a version of Facebook’s public Safety Check that the Enterprise Engineering team had originally adapted to the company’s own internal use.

“Many of these things that we are building for Facebook, because we are now very close partners with our Workplace team — they are in the enterprise software business and we are the enterprise software group for Facebook — and many [features] we are building for Facebook are of interest to Workplace customers.”

As Workplace hit the market, Banerjea ended up talking to the CIOs of potential users, including the likes of Delta Air Lines, about how Facebook itself used Workplace internally. But as companies started to adopt Workplace, they realized that they needed integrations with existing third-party services like ERP platforms and Salesforce. Those companies then asked Facebook if it could build those integrations or work with partners to make them available. But at the same time, those customers got exposed to some of the tools that Facebook itself was building internally.

“Safety Check was the first one,” Banerjea said. “We are actually working on three more products this year.” He wouldn’t say what these are, of course, but there is clearly a pipeline of tools that Facebook has built for internal use that it is now looking to commercialize. That’s pretty unusual for any IT organization, which, after all, tends to only focus on internal customers. I don’t expect Facebook to pivot to an enterprise software company anytime soon, but initiatives like this are clearly important to the company and, in some ways, to the morale of the team.

This creates a bit of friction, too, though, given that the Enterprise Engineering group’s mission is to build internal tools for Facebook. “We are now figuring out the deployment model,” Banerjea said. Who, for example, is going to support the external tools the team built? Is it the Enterprise Engineering group or the Workplace team?

Chances are then, that Facebook will bring some of the tools it built for internal use to more enterprises in the long run. That definitely puts a different spin on the idea of the consumerization of enterprise tech. Clearly, not every company operates at the scale of Facebook and needs to build its own tools — and even some companies that could benefit from it don’t have the resources to do so. For Facebook, though, that move seems to have paid off and the tools I saw while talking to the team definitely looked more user-friendly than any off-the-shelf enterprise tools I’ve seen at other large companies.

Jul
30
2019
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Monday.com raises $150M more, now at $1.9B valuation, for workplace collaboration tools

Workplace collaboration platforms have become a crucial cornerstone of the modern office: workers’ lives are guided by software and what we do on our computers, and collaboration tools provide a way for us to let each other know what we’re working on, and how we’re doing it, in a format that’s (at best) easy to use without too much distraction from the work itself.

Now, Monday.com, one of the faster growing of these platforms, is announcing a $150 million round of equity funding — a whopping raise that points both to its success so far and the opportunity ahead for the wider collaboration space, specifically around better team communication and team management.

The Series D funding — led by Sapphire Ventures, with Hamilton Lane, HarbourVest Partners, ION Crossover Partners and Vintage Investment Partners also participating — is coming in at what reliable sources tell me is a valuation of $1.9 billion, or nearly four times Monday.com’s valuation when it last raised money a year ago.

The big bump is in part due to the company’s rapid expansion: it now has 80,000 organizations as customers, up from a mere 35,000 a year ago, with the number of actual employees within those organizations numbering as high as 4,000 employees, or as little as two, spanning some 200 industry verticals, including a fair number of companies that are non-technical in their nature (but that still rely on using software and computers to get their work done). The client list includes Carlsberg, Discovery Channel, Philips, Hulu and WeWork and a number of Fortune 500 companies.

“We have built flexibility into the platform,” said Roy Mann, the CEO who co-founded the company with Eran Zinman, which is one reason he believes why it’s found a lot of stickiness among the wider field of knowledge workers looking for products that work not unlike the apps that they use as average consumers.

All those figures are also helping to put Monday.com on track for an IPO in the near future, said Mann.

“An IPO is something that we are considering for the future,” he said in an interview. “We are just at 1% of our potential, and we’re in a position for huge growth.” In terms of when that might happen, he and Zinman would not specify a timeline, but Mann added that this potentially could be the last round before a public listing.

On the other hand, there are some big plans up ahead for the startup, including adding a free usage tier (to date, the only thing free on Monday.com is a free trial; all usage tiers have been otherwise paid), expanding geographically and into more languages, and continuing to develop the integration and automation technology that underpins the product. The aim is to have 200 applications working with Monday.com by the end of this year.

While the company is already generating cash and it has just raised a significant round, in the current market, that has definitely not kept venture-backed startups from raising more. (Monday.com, which first started life as Dapulse in 2014, has raised $234.1 million to date.)

Monday.com’s rise and growth are coming at an interesting moment for productivity software. There have been software platforms on the market for years aimed at helping workers communicate with each other, as well as to better track how projects and other activity are progressing. Despite being a relatively late entrant, Slack, the now-public workplace chat platform, has arguably defined the space. (It has even entered the modern work lexicon, where people now Slack each other, as a verb.)

That speaks to the opportunity to build products even when it looks like the market is established, but also — potentially — competition. Mann and Zinman are clear to point out that they definitely do not see Slack as a rival, though. “We even use Slack ourselves in the office,” Zinman noted.

The closer rivals, they note, are the likes of Airtable (now valued at $1.1 billion) and Notion (which we’ve confirmed with the company was raising and has now officially closed a round of $10 million on an equally outsized valuation of $800 million), as well as the wider field of project management tools like Jira, Wrike and Asana — although as Mann playfully pointed out, all of those could also feasibly be integrated into Monday.com and they would work better…

The market is still so nascent for collaboration tools that even with this crowded field, Mann said he believes there is room for everyone and the differentiations that each platform currently offers: Notion, he noted as an example, feels geared toward more personal workspace management, while Airtable is more about taking on spreadsheets.

Within that, Monday.com hopes to position itself as the ever-powerful and smart go-to place to get an overview of everything that’s happening, with low chat noise and no need for technical knowledge to gain understanding.

“Monday.com is revolutionizing the workplace software market and we’re delighted to be partnering with Roy, Eran, and the rest of the team in their mission to transform the way people work,” said Rajeev Dham, managing partner at Sapphire Ventures, in a statement. “Monday.com delivers the quality and ease of use typically reserved for consumer products to the enterprise, which we think unlocks significant value for workers and organizations alike.”

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