Two smaller companies are joining forces to take on Microsoft, one of the biggest tech giants in the world.
LumApps and Beekeeper just created a $1.1 billion company by combining their strengths. LumApps makes modern office communication tools for big companies like Airbus and LVMH. Beekeeper focuses on frontline workers including the retail staff, airport employees and field workers who don’t sit behind desks all day.
Microsoft’s SharePoint has dominated workplace communication since 2001, but it’s getting old and clunky. Many companies use it because they have to, not because they love it. This creates a perfect opportunity for challengers.
We’ve seen this playbook work before. Slack successfully challenged Microsoft’s email dominance before being bought by Salesforce for $27.7 billion in 2021. Now this French-Swiss team is trying the same strategy with intranet software.
What’s smart about this merger is how it covers all workers, both office employees and frontline staff. Most companies struggle to communicate effectively across these different groups. By solving both problems, the new company becomes much harder to replace.
The numbers look promising too. They’re already making $150 million annually and expect to double that by 2030. Plus, they claim they’ll be profitable from day one, which is unusual for a newly formed alliance.
However, Microsoft won’t sit quietly. During the pandemic, they quickly built Teams to compete with Slack and gained massive market share. They have deep pockets and existing relationships with almost every major company.
The real test is speed. Can this new company deliver better products fast enough before Microsoft responds? With solid backing from private equity firm Bridgepoint, they have the resources to try. Success will come down to execution.
