logoalt Hacker News

Slack has raised our charges by $195k per year

841 pointsby JustSkyfalltoday at 1:37 AM414 commentsview on HN

Comments

casqtoday at 4:09 AM

Hi, I’m Christina, cofounder of Hack Club. We just announced this news to our community, and this post is from one of the teenagers in Hack Club. It’s an accurate description of what’s happened, and we’re grateful to them for posting. Slack changed the terms of a special deal we were given last year to charge us for staff and volunteers (not for every teenager coding), and we built programs around that special rate. Then this spring they changed the terms to every single user without telling us or sending a new contract, and then ignored our outreach and delayed us and told us to ignore the bill and not to pay as late as Aug 29

Then, suddenly, they called us 2 days ago and said they are going to de-activate the Hack Club Slack, including all message history from 11 years, unless we pay them $50,000 USD this week and $200,000 USD/year moving forward (plus additional annual fees for new accounts, including inactive ones)

For anyone reading this, we would really appreciate any way to contact people at Salesforce to discuss time to migrate because deactivating us in 5 days destroys all the work of thousands of teen coders at Hack Club and alum unnecessarily. We are not asking for anything for free. This was an underhanded process by the sales team to raise our rate exorbitantly from a qualified educational 501(c)(3) charity serving young developers or destroy all their projects, DMs and work forever. If Salesforce’s goals have changed- ok. Give us a reasonable amount of time to migrate- and don’t club us over the head like this. We have had an 11 year great relationship with Slack- and have introduced the company to many many future engineers and founders. My email if you can help us: [email protected]

show 1 reply
nodar86today at 6:47 AM

Hey! I have an open-source project for browsing an exported slack archive, it may be useful to you so you can see and search the history: https://github.com/pkarolyi/slack-archive-browser

I haven’t maintained it in a while since it works for us, but PRs are welcome :)

A good first one would be adding non-slack authentication as currently it only supports Slack openid for logging in, but it uses next-auth and should be simple to extend

show 1 reply
Havoctoday at 7:42 AM

> Slack reached out to us and said that if we don’t agree to pay an extra $50k this week and $200k a year, they’ll deactivate our Slack

Did they show up with a baseball bat in hand? That’s some big city mobster tactics right there

fn-motetoday at 2:24 AM

I was ready to be unsympathetic - too bad for the company - but then I read TFA and it's a rug pull on a nonprofit teaching coding to kids....

https://hackclub.com/

(They do help clubs sell things, taking "7% of income", so they do have a revenue stream, but the money that Slack wants would pay a veritable army of student interns.)

show 5 replies
tossandthrowtoday at 7:42 AM

Slack has been a down hill project for the past 5 years and has become incredibly bad.

Unfortunately,this should be the sentiment with all SaaS projects.

When a platform, like in this case, is inherent to the value proposition and can not easily be exchanged (building programs around it), one should consider self hosting.

show 1 reply
realityfactchextoday at 2:22 AM

Since you're a nonprofit that teaches coding, it could be a great time to consider self-hosting a FOSS chat tool.

Suggestions: Campfire [0] or Zulip [1].

Also, if the data in chat is being held hostage, the org might be using chat wrong. Right tool for right purpose. If starting over, perhaps consider if it would make sense to put that documentation or whatever it is that will get "lost" from Slack into a wiki or repo or other appropriate tool?

Big empathy, though. It must be pretty crushing. But that is why serious geeks have long been for FOSS.

  [0] https://once.com/campfire (recently became FOSS) 
  [1] https://zulip.com
show 2 replies
stroebstoday at 6:07 AM

Classic Salesforce. The exact same thing happened with our org and Heroku. Zero empathy, just pony up or we trash your company.

show 1 reply
jacindatoday at 6:57 AM

+1 to the other comments recommending Zulip over Mattermost. The threading model is fantastic.

Also, for a non-profit teaching coding note that they regularly have interns under the Google Summer of Code program and it's open source, so the students can even help with it.

https://summerofcode.withgoogle.com/programs/2025/organizati...

show 1 reply
kragentoday at 2:58 AM

Slack's business model has always been that you give them all your most critical data and they sell you access to it. This is basically the business model of the traditional kind of ransomware, before people got better at making backups.

You probably should expect large bill increases over time from ransomware-as-a-service companies like Slack. Not all of them—people are capable of behaving decently—but probably the nature of the category is such that you should expect it of most of them.

When switching providers is impossible, the pricing of maximum profit for the provider is the pricing where the buyer is exactly zero. Slack presumably doesn't have quite enough information about their clients' businesses to calibrate this exactly, but if they can approach it approximately, they'll make a lot of money; even though they drive some of their customers out of business, those losses are compensated for by the higher revenues from their surviving customers.

ozgrakkurttoday at 7:13 AM

You could rent a server + hire an infra engineer full time to manage chat for just this amount of money

okcoder1today at 5:42 AM

Hi! An official announcement from Zach Latta has been made in the Hack Club Slack. We're moving to Mattermost now and we're trying to export all messages, DMs, etc. Disclaimer: I am a member of Hack Club's Slack and NOT a working personnel there.

Hobadeetoday at 6:09 AM

This isn't just you. We have quite a few clients in this same boat. (One client is migrating to Teams in a couple of weeks for this exact reason.) We have quite a few RIA clients, and because of archiving requirements, this is happening to every single one of them. These aren't poor companies, but Slack is making it really hard to justify the expense anymore. We will have quite a few companies dump them when renewal comes around.

show 2 replies
mixcocamtoday at 7:38 AM

Mailing lists, just switch to mailing lists with a web archive for internal discussions. You can have a chat with messages which auto-delete every 30 days for quick discussions (we use the talk chat from nextcloud - not great but does what we need).

All of our real discussions are sent to a mailing list with a web archive (like lkml.org, except private). That way we can still reference precise messages easily. It has been working great for us.

show 1 reply
anonzzziestoday at 7:50 AM

Move to Zulip already...

p0w3n3dtoday at 5:20 AM

We're using teams in my new company, which is awful for textual communication (lacks threads in chats, groups are more like old forums than new IM). I've been experimenting with self-hosted Mattermost but it seems that it also requires paid license in some situations (e.g. does not have groups for some reason in the free version).

I was unable to find another system. Would anyone recommend me something?

show 2 replies
junartoday at 2:13 AM

I really wish this post had more details.

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?

show 2 replies
lenbot7today at 6:59 AM

As a member of the hack club slack, to update you all, we have been backing up absolutely everything and going as quick as we can

freedivertoday at 2:40 AM

We are using a hosted Zulip instance for company chats at Kagi, not just to prevent scenarios like this but also for data privacy reasons.

nikcubtoday at 3:24 AM

There are also reports of this happening with their CRM customers[0]. One look at their YTD stock chart (-27%) may suggest why.

Very Oracle behaviour from the company started as the anti-Oracle.

[0] https://www.reddit.com/r/salesforce/comments/1n93cl0/crm_pri...

show 1 reply
novateatoday at 2:28 AM

Another Hack Club member here, this situation is hard on many of us since we built many of our projects around Slack integration, and we now have to rapidly re-code them so they don't break. It's not great, especially in the middle of the school week (reminder that hack club is a coding nonprofit for teenagers, so i have to go to school and have homework while doing this)

show 1 reply
raxxorraxortoday at 7:21 AM

Nobody should pay more than $195 for a chat app per year for unlimited usage. Completely insane pricing.

Take care about how you plan infrastructure.

jppopetoday at 2:27 AM

I totally feel for your group in this situation, and more than anything I think the timeline is pretty rough.

To address the rest of the comments in the thread though... most pricing structures are to incentivize growth or to maximize profit. In the days of Bill Macaitis Slack was a growth company, and they were trying to build as much good will as possible, because good will is good for growth (especially to reduce cost on marketing). Salesforce doesn't care about good will or growth at this point, because the market penetration phase is basically over. Retaining good will over maximizing profit at this stage won't help them with what they are trying to do, and they aren't that kind of company anyway. Its not like Patagonia bought slack or something.

The lesson, if there is one, is that as a consumer to keep the companies honest we need more competition (and no I'm not talking about Microsoft teams). However this is exactly the opposite of what investors want. Think about that when you decide to buy a product from a well funded VC backed startup. Being cheap and moving fast aren't the end state.

Izmakitoday at 7:35 AM

Tell Slack to go ** themselves, and move everything to a free platform that the teens and kids already use: Discord.

show 1 reply
flunhattoday at 2:15 AM

For whatever reason, Salesforce has failed to capitalize on the AI excitement/craze [1]. Its earnings growth is just not what it used to be (i.e. during the peak cloud era of 2010s-202x).

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

show 3 replies
ggmtoday at 6:54 AM

I have worked with an NFP who worked with Mattermost and they were very responsive as backend support.

I have no exposure to pricing, but the fact they talk to people directly impressed me immensely.

IETF uses meetecho and it has meeting-support stuff including speaker control and voting mechanisms (I know, we dont vote in the IETF...) which I think are interesting. Thats more useful in the live online state. Again, the devs are unusually available.

I don't personally like discord, although many FOSS projects are on it. I think the whole stickers and like just .. turn me off.

v3ss0ntoday at 6:30 AM

Zulip is much better alternative due it it's threaded nature and it have nice slack import tool. Please give a try.

show 2 replies
s20ntoday at 7:06 AM

Personally, I and my friends self host matrix for our organization but Mattermost is also a fine free-software alternative.

There are plenty more reasons to avoid using Slack, see: Reasons not to use Slack by Richard Stallman <https://stallman.org/slack.html>

show 1 reply
matthewaveryusatoday at 5:30 AM

For those of you recommending matrix, have you tried in earnest to use it? I couldn't get reliable video and call to work, even with stun/turn servers properly configured (chrome doesn't trust let's encrypt for ICE certs, that was a fun one to debug, had to go with zerossl).

Sometimes the phone wouldn't ring, rarely did video work.

The element app for android doesn't notify correctly unless the app is open.

For day to day desktop chat it's great, but it falls apart on videoconferencing and mobile

show 2 replies
moi2388today at 5:22 AM

I personally would’ve gone for matrix since it’s free and open source, but I’m sure this license will be better..

rollulustoday at 5:58 AM

“Pay 50k$ within a week or we’ll delete your data”. Ransomware gangs are even friendlier than this.

show 2 replies
andy_ppptoday at 6:39 AM

Honestly, I did not know Salesforce had bought Slack. I would encourage everyone here to avoid that company - their business model seems to be create a spiderweb of critical touch points within an organisation and its data then suddenly hike prices. Certainly in this case but I’ve heard it happen with other products too.

show 1 reply
OhMeadhbhtoday at 7:17 AM

The cloud is other people's computers.

Cort3ztoday at 7:30 AM

Wonder how the ROI on this is going to be for salesforce.

kfogeltoday at 2:03 AM

So many stories like this about Slack.

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.

show 2 replies
joshmlewistoday at 3:08 AM

It's also not a coincidence that Slack is neutering the ability to access channel history via the API very soon. With a very generous rate limit of 2 requests per minute I believe it was and a max of ~10 messages. This is already enforced for new marketplace apps and will apply to all apps starting in March according to their docs.

mkhaliltoday at 4:48 AM

Unpopular opinion: I think it's wild that ANY ORG would pay $200k for a chat app. If I ever ran an org that needed a chat app and the costs came even close to $200k a year, I would rather hire an engineer, contract a designer, and create our own, or more likely, contribute/fork an open source project like Matrix; providing us with the ability to *really* integrate it into our company/tools - as oppose spending it on IRC+ for "good enough" integration. PLUS ... our data stays on under our control.

joshutoday at 5:52 AM

we built a tool on slack for communities and companies, and then did some outreach to community leaders about trying it out. they almost universally said that they hated being captive to slack and wanted to transition away.

jillesvangurptoday at 6:48 AM

We're on the freemium plan with them. I don't see a big need to pay Slack. It's a low value commodity. Most of that stuff is highly transient anyway and even for their recent history their search is pretty limited. I always struggle to find stuff back in slack. Our company policy is to stick anything important in a place where we won't lose it (Google drive mainly).

And since we actually pay for Google Workspaces, we could switch to their chat solution. I haven't actually bothered even trying that so far. Because they'll probably cancel it in a few years. And there are a gazillion alternatives. I've used everything from news groups, irc, icq, hip chat, discord, etc. in the past quarter century or so. And that's just for work related communication. The main reason for me to use Slack is that it's there and cheap and it kind of works. I have no big pressing need to switch. Or to pay anyone for this stuff.

Slack was the cute sexy new thing about ten years ago. Then they got acquired by Salesforce and now it's just yet another corporate thing; so enshittification is a given. But they might want to remember that the only reason they got this big is through their generous freemium offering. Cut that off and the rest just bleeds out as well. Along with all the revenue. They wouldn't be the first chat solution that joins the ranks of the once big and long forgotten.

show 1 reply
drowntogetoday at 6:27 AM

Do not use Slack.

show 1 reply
arp242today at 2:00 AM

Did you have a special deal with Slack? I don't understand how they can just increase the price with a few days notice?

show 3 replies
ThinkBeattoday at 2:40 AM

If you are going the way to self-host it so you own all your won data. all you have to do is run mattermost in production on hardware you control at 99.9% Or 80% or whatever uptime is deemed necessary.

Or you can use an out of the box host, but then your data is not in your direct control.

DarkmSparkstoday at 3:08 AM

The fact they think they can charge this much tells me that there is a lot of room for competition in the webguis for irc space.

Anyone fancy building on for self hosting? Im booked up solid till February but this would make a nice Christmas project.

fredrikgangsotoday at 6:16 AM

Sad to read, but I also got inspiring.

thepancaketoday at 6:54 AM

Nothing to see here, only yet another case of vendor lock in and the unfortunate decision to use anything but FOSS.

arrty88today at 3:19 AM

That’s salesforce for you! My employer left slack due to 7 figure bill for seats that were 10 times smaller due to shrinking company.

PHGamertoday at 7:10 AM

should just switch to discord. each project can have its own server

show 2 replies
cmckntoday at 3:00 AM

I’m not familiar with this organization. For those curious: https://projects.propublica.org/nonprofits/organizations/812...

In 2023 they had $11.4 million in revenue, almost entirely donations, and spent about $6 million. They had about $10 million in assets.

show 2 replies
wpmtoday at 2:03 AM

I can sympathize, but this was always the end deal for cloud SaaS apps. Give em a taste, get em hooked, get years of institutional knowledge and process embedded in the app, refuse to let them export it, and crank the price up.

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.

show 8 replies
sneaktoday at 6:19 AM

Note that Mattermost is fake open source cosplay, and keeps important features in their non-foss application. If you want these table stakes features (like SSO or message expiry) you’ll find yourself maintaining your own fork or janky scaffolding (I have cronjobs that run SQL directly against the db).

They are using open source licenses simply as marketing for their proprietary enterprise software product.

It’s still better to self host than to use a SaaS, but the situation isn’t improved quite as much as one might think.

show 1 reply
aitchnyutoday at 5:24 AM

What "years of institutional knowledge" does Hack Club and others have in Slack? I assume anything more than a week old to be unsearchable. In fact I want chats older than 1 week to be deleted so inportant stuff will be copied to wiki.

show 2 replies

🔗 View 50 more comments