Hello. Stuart is a pleasure to have you here today. Thank you. How are you doing? I'm well. Cool. So typically we would start these with a question asked in the students how many you use Slack. But since it's the official communication platform for the GSB, we're going to have to do something a little different. How about a game of two truths in a law? All right. Cool. So up here on the screen, and just a second, we're going to see three statements that I pulled from my extensive research of your past. We're going to ask the audience to guess which one of them is a lie. So statement one, you were born with a name, Stuart Butterfield. Okay. Statement two, you have two philosophy degrees. All right. Statement three. Flicker, your first successful startup. It was conceived while battling with food poisoning. Okay. So with the audience, raise your hand if you think statement one is false. Oh, wow. It's a lot of people. Raise your hand if you think statement two is false. Okay. Raise your hand if you think statement three is false. Okay. Stuart, you look pretty good. It's number one. It's number one. So you were not born Stuart Butterfield. I was born Dharma, Jeremy Butterfield, to hippie parents in a little town called London, British Columbia, which is literally the end of the road. So Pacifico's highway is the same road that goes all the way down to Chile and then all the way up to where the fjords of British Columbia and the fact that there's no only people living any further north means that it was foolish to continue building the road. So, born there and grew up in a long cabin for the first couple of years. So grew up in a long cabin, Abe Lincoln also grew up in a long cabin. Very, yeah. That's why I bring it up for the positive associations. Yeah. So trust me understand, my parents named me Trvorski Tyling Garrett and as a four year old, I was not riding Trvorski on every spelling test. Yeah. So, I go by Tyling and you actually know me by Ty. Yeah. So, Qi-Y is very... I think it's like, so when I was 12, I really wanted to be normal. And for some reason I thought Stuart was a normal name, like Mike or something like that. And Stuart, it's a pretty bad name. Like, you'll notice this after I say, anytime you watch a movie, TV show, there's a character named Stuart, there's like the jerk version and then there's like the sad sack, kind of loser version. There's never like, there's never a protagonist with the exception of the mouse, Stuart Little. That was one of my favorite movies growing up. So if you could pick any name today, what would it be? It would be Darmajermi Butterfell, it's a second name.
Cool. So you handed it a little bit on your parents. What have been the most lasting influences from their parents though? That's a good question. I mean, it's hard to separate out that from what life would have been without those influences. My mom is incredibly supportive to the extent that when I was 16, I got into car accident, just totaled the car. My dad's car and my mom's reaction was, well, it's really good that you did that because you learned an important lesson about driving safety, which is not the reaction I was expecting. My dad was a real estate developer and real estate development usually works, the people incorporate a new entity for each project or each development. Maybe there's a management company that takes management fees, but it kind of isolates the investments, which means that it's like creating a business over and over again. Every two or three years, there's a fundraising cycle and there's kind of putting together the vision and a plan. And then over the next decade or so, that plays out. So I think that was a big influence for me just because I got to see the development of, I don't even know, but over the course of my childhood, once I was aware of what was going on, maybe five or six different businesses. And that was good practice because I think I started looking at the world that way.
That's cool. That's cool. So you were born Dharma Butterfield. You were raised by parents who aspire to live off the land. It only makes sense that you would be drawn to technology. So what led you to teach yourself to program at the age of seven? Computers were just so cool. And even, you see now, any three month or six month, all of it's just drawn to the iPad in a way that seems like it must be indicative of a lower level brain function that was hijacked in order to be attracted to this.
So for me, any, many screen just like, you know, any child, any screen was a super attractive. The idea that you could control what appeared was really magical. And this 1979, 1980, somewhere around there, I got an Apple TV at home. So we had one in the classroom. So the very first class at my school to have a computer in the classroom. And I would buy a copy of a magazine called Bite, which in the back, a couple of pages had programs that you could just type out yourself in Apple Basic. And you could change. a couple things and see what happened. And it was really, I have difficulty describing why it had such a powerful hold.
But what was interesting is if you fast forward like 20 years, there was, I liked, I had an early game console called an Intellivision. So I liked video games like most boys in my age. The numbers are, the arcades where you went and put quarters and machines and stuff like that. But computers themselves became less and less interested in me over the course of high school. But when I got to college, I got an account on the school's Unix machine and discovered the internet. This was 1992. And that was just totally mind expanding and almost couldn't believe that such a thing was possible.
And it had the same feeling of wonder, but to a higher degree, because it was like we, as a species, had developed the ability to transcend geography in a much more profound way than like long distance phone calls had or the telegraph had. You could find community, an agro up in, it's going to college in Victoria, British Columbia, which is again on the edge of the continent, very remote kind of provincial. And you could find people who were interested in exactly what you were anywhere in the world and that communication is happening at the speed of light. So that really opened it up.
And then fast forward another 10 years. So like in the early 2000s, I had this experience finally where I had my laptop with me. And what at one point in my life had been like the Steve Jobs bicycle for the mind, like this incredible machine that you have anything was possible and all this amazing software, when it wasn't connected to the internet was inert. It was basically kind of useless.
It was like a rock. So it was a very interesting experience to think about like the successive layers of what really matters. The first one being that ability to run arbitrary codes would generate more or less anything that a human can imagine and then the ability to put all of those together. And I think that was like the thing that has guided my career ever since is the exploration of that idea of computing technology as a means of facilitating human interaction. It's amazing.
So that's what drew you to technology initially, but you actually studied philosophy. So what inspired that decision? I really wanted to do a degree in cognitive science, but the school that I went to didn't have cognitive science.
So cognitive science is usually computer science, psychology, linguistics, and psychology. And so I wanted to take courses in all four to do an honors degree in psychology. Like every single course was requirement. In fact, you had to do like extra. Whereas philosophy is a pretty light set of requirements even to do an honors degree. So I chose philosophy literally like that. It was like of those four, the one that had the few requirements.
But after I started studying it, even though I was like, it was really, a deep philosophy of mine is really interested in neuropsych as an undergrad, the fundamentals of philosophy I found super fascinating. And this is, this is sounds bad. And it is bad in one sense. It's good in another sense. So you think about the last 2,500 years of kind of the history of inquiry of all different kinds. At some point everyone was a philosopher.
If you were interested in the world in an a religious way, like the beginning of science was philosophy. At some point mathematics, geometry, astronomy split off over the next many hundred years. Things like biology in the 19th century split off into its own discipline and psychology, anthropology, sociology, computer science, linguistics, women's studies. So all you had left was like an area of inquiry that has not directed at anything except for like itself and language.
So in one sense, it's really boring. So if you didn't ever study philosophy and you pick up a book of contemporary Anglo-American analytic philosophy, it is super, super boring. It's almost impenetrable without this giant vocabulary that weighs into it. But once you're into it, I still find it really fascinating because there's so many unanswerable questions. It's good to know.
So who was the most influential philosopher to you? I have a pretty broad range and I liked all kinds of thinkers, but like back to Aristotle, it's been those more contemporary, client and Donald Davidson. But if there's one, it was Vickish Lank, because that's why I ended up going to Cambridge. Amazing. Amazing.
So we're in 1997 now. You're armed with two philosophy degrees and a name for a philosopher, a butterfield. But you decided to become a web developer. What led you back into technology?
Well, so like I said, I got to college in 1992, which was like at least for my awareness, six months to maybe a year before the web really took off. I think Mosaic had been invented but wasn't really widely deployed. So the internet was email, IRC, a UNIX program called Talk. More than anything else, it was using that. And that meant that as soon as the web became a popular medium that started supplanting things like GoFur and Waze, I was there. And it was really, the HTML back then was just dead simple.
So very easy to teach yourself. So 93, I was, I don't know, one of five people in my hometown who knew HTML, which meant that 94, 95, 96 every year, my summer job, but also just my job during the school year was making websites for people who didn't know how to make websites because pretty much no one did. And it was 98, I finished my masters and was enrolled in the PhD. And it was the beginning, so a friend of mine had just finished his PhD in philosophy and went to a great school and did great thesis work and was really at the top of the range.
And got his first job, which was at the University of Louisville in Kentucky and he really didn't want to live in Kentucky. And it was a crappy job with low pay and it's a sessional position. So it renews every nine months. I thought of how many hoops I had to jump through just to get to that point. Or because it was 98 and the dot com thing that started to take off and I knew the web and all of my friends who were early web people were moving to San Francisco and getting jobs that paid two or three times as much and it was exciting and dynamic and we were changing the world.
So I had advice from a couple professors over the course of my career who essentially were this is a terrible life, please don't become an academic. If you're interested in this stuff, you can subscribe to the journals and attend the conferences. You don't have to actually do a PhD and then go be a professor. So I took that advice. Okay.
That's good to know. So I'm actually curious. Raise your hand if you have a humanities degree. Okay. Keep your hand raised if you're considering a career in technology. Okay.
So my question there is what were the advantages and disadvantages in having a humanities degree within the technology industry? It's tough because I mean there's multiple technology industries. So when I would say when I started in 98, the web was tech but it was populated much more by people with the background in like graphic design or architecture if you're making web development, the serious backend programmers had a parallel track to web server development but it was really like a totally different era and there wasn't anything in between like the architects and the graphic designers on one side and the people this won't be a familiar reference to many of you but the people using web logic and ATG, Dynamo and these like from today's contemporary perspective kind of really horrible application servers that had a fundamentally different approach to doing web development.
It was stateful applications, things like enterprise job beings and so I don't think it really made any difference. What your background was at that point? It could have been history, could have been finance, could have been physics and meanwhile there's a different technology industry which is like all of the descendants of Fairchild Semiconductor and Intel and HP and a bunch of companies that were native to this area but that was completely different. The design of circuit boards and processors and manufacturing computers was totally unrelated to the web and still today I think we say tech industry broadly, I think mostly what people mean is at least around the Bay Area is companies that receive VC backing as opposed to anything else. They're not necessarily specifically technology companies and the side effect of software eating the world in the famous smart and recent phrase is that every company is a technology company.
You can look at like Visa or MasterCard probably employ close to an order of magnitude more software developers than Stripe and everyone would say Stripe as a technology company is PayPal a financial services company or tech company is Airbnb a tech company or hospitality company. It's really it becomes increasingly hard to make that distinction unless you mean like technology is Huawei making 5G antenna chips and it's like Dell and then software businesses like lock. Thank you for that.
So you worked as a web designer for a few years before starting a video game company and launching your first video game never ending. What was your vision for that game? So when I said 92 the thing that was most interesting to me about the internet was using that. Using that is a those of you who don't know it. A hierarchical directory of news groups and it covered Moral's everything so they began with the three letter abbreviation so SCI was science and there was science physics and geology and so on. And then rack, rack dot music dot, rack dot music dot G dead grateful dad was in 92 the netflix of its time in the sense that it used more bandwidth and any other single thing on the internet. There's so much traffic of people discussing grateful dad that it kind of surpassed everything else.
你在成为一名网页设计师数年后开始了一家视频游戏公司,发布了你的第一款游戏《永不停止》。那时你的愿景是什么?当我提到92年时,最吸引我的是互联网的使用。互联网上有一个层次结构的目录新闻组, covers了 Moral's everything,所以它以三个字母的缩写开头,例如SCI代表科学,然后按照科学、物理学和地质学等进行分类。然后rack,rack点音乐点,rack点音乐点G dead grateful dad是92年在网上使用带宽最多的东西,就像当时的netflix一样。有很多人讨论Grateful Dead,因此它几乎超越了所有其他东西的流量。
So 93 I guess probably a year later I had the first experience of having a crush on someone that I had never actually met was just like from her online persona her sig files the things she said in comments. And the idea that that kind of connection was possible was I mean this really early stage was like very interesting to me. You go forward to 98 99 2000 and people had blogs there were the early social networks like six degrees and then friends to her was probably 2002 ish around there but people had started developing a persona and having interactions with other people over the internet in a bunch of different virtual communities. Some of those are really explicit like the wells are like one of the ancient ones but both in board systems discussion boards moves kind of like interactive chat based games. And the I said earlier that the idea of social interaction mediated by computing technology like the new possibilities that opens up was a thing that was really fascinating to me.
So when you say game I think people have the assumption that there's puzzle games and there's shooting games and there's sports games and stuff like that. This was none of those and this was just play as a pretext for social interaction. So this is a description that may or may not have appeal to some of you I will tell you that it does not have broad commercial appeal. And that's like whimsical world of like absurdist humor and kind of hopefully delightful little things to discover but it's mostly like a venue for people to interact and to form community with one another. And super popular among the small group of people from we developed this prototype and were testing it but that was 2002.
So some of you are probably were just little babies in 2002 but there was the dot com crash which started in 2000. There was the World Com and Enron accounting scandals. There was 9.11. It was just like a really dark time for financial markets. The NASDAQ was down I think 80 or 85% from its peaks and the S&P 500 was out of 65%. It's kind of like hard to imagine even in comparison to 2008. So no one wanted to invest in internet stuff period but definitely no one wanted to invest in web based massively multiplayer games. That was just like as frivolous as you could possibly be. We should bet that no one would invest in us and we didn't have enough money to finish it and we tried to cast around for something that we could do with the technology we developed that would create a commercially viable product and that turned out to be Flickr. Yeah so ironically game never ending didn't.
So how did you feel when you realized you had to shut down the game? Horrible. But at the same time they kind of happened like we were developing Flickr and in the games side by side for a couple of months. The decision to make Flickr and then its launch was three months separating those so it happened pretty quickly. But in that case it felt like it was a path forward. The team got to stay together. We had like we disappointed a lot of people who were playing it but also a lot of them are like cool Flickr is interesting too and they're just kind of migrated. So that wasn't that bad.
So it was a conference on law and virtual world in New York and flew from Vancouver where I was living and got food poisoning on the flight and I don't know if I could to vivid but it's just like puking in the immigration hall, JFK, puking in the cab on the freeway, get to the hotel and like step out of the cab and puk all over the car. So sorry little vivid.
I couldn't keep down anything. like ginger ale, water and that night at like three in the morning after being up a kind of feverish and frantic rode out the whole first version of Flickr. What it would be and how it would take advantage of those technologies. I will say this though that was the very first version which is very different than one and it had become and it was not actually very good. It got us going. So I have am yet to have a battle with food poisoning be so productive.
So Kudos to you there. You decided to focus on Flickr. When you made that shift did everyone on your team buy in immediately or what was that process like? No, so I'm pretty democratic leader sometimes. Maybe less so now than back then but we had a vote and there was a tie. So I called Eric Costello. It's actually one of the founders of Slack as well and just like does some background lobbying to get him to change his vote so that we could go ahead with it.
There's definitely like there's people who are still interested in making the game and felt like it was a shame to leave it behind. It was also I think in terms of the number of people online way too early, the technology that was available way too early. I think people forget. 2002 was the first year that any country got more than 50% internet penetration at home and that was the Netherlands. And even then that was almost all dial up connectivity so most Americans didn't have internet access. If they did it was at work and it was very narrowly prescribed and if they did anything online it was like maybe check sports doors and stock prices or something like that.
So there wasn't really a market for it but I just like making software just in the same way that I did when I was seven years old and I think everyone else on the team did too so we just got to make a different than a software. And in the end it was the game was play as a pretext or social interaction. Flickr was photography as a pretext for social interaction. It was the first one of the designers there called it massively multiplayer photo sharing which I thought was pretty accurate because it was the first thing other than the web shots which I heard about later where you could put a photo online and people could see it and comment on it and you could have a title and description and you could tag it and create groups and all of that kind of stuff. So it was a social network that revolved around photographs.
I think it started right around the same time as Facebook but Facebook was still just a harvard for another six months or a year and then just the IVs for another close to a year after that. Cool. So not to spoil the story but you eventually sell Flickr to Yahoo for excess of $20 million. I'm curious looking back now as you're leading Slack what lessons from your time at Flickr have been most influential on the leader that you are today?
It's hard to say because it was so long ago. We started developing in 2003, launched in 2004 and then this summer, sorry the winter break in 2004, 2005. There's this big decision about whether we're going to take VC funding or we're going to get bought by Yahoo. So it's 2005 to 2008 that I was there and there's definitely not something that stands as like the thing that I learned. There other than how hard it is to get something done or how hard it is, I mean that is a good lesson, how hard it is to get something done in an organization that size.
It was about 12,000 people and I think there's a couple things that were wrong with it at that time but the biggest one was it had basically stopped growing and in an environment where the pie isn't growing anymore, suddenly the game theoretic, the calculus especially among executives is very zero sum. So it was like people battling each other internally. But even to forget that for a second, any organization that fans thousands of people and it requires such an extraordinary injection of will to make anything happen that most things are for our practical purposes impossible.
Okay, so we fast forward to 2012. You have left Yahoo which by the way if you have not read Stuart's resignation letter from Yahoo, please Google it. He likenes himself to a 10 Smither named Brad. It's quite hilarious. So it's 2012, you're starting another video game company this time, TinySpec. At TinySpec you launch a game called Glitch. What gave you more confidence in the gaming area this time around?
So in 2009 we started the company in 2012 when we shut it down but it's the same group of people, you know, so four of us who had worked on Flickr and we all worked together. But 2002 to 2009 was pretty amazing time in the history of the internet so suddenly everyone had internet access and there were phones that were capable of internet access and black barriers and trios and there were a lot of people had high speed internet by that time. The world of open source software specifically to support development on the internet. We had just exploded so there was really not much available in 2002 but by 2009 we had a very robust mature Apache foundation and all of these great networking technologies. And computers were much faster and there's many more people online. We were much more experienced. It was very easy to raise money. Like if you just look at any factor in a giant matrix of like things that would lead this to be a good plan or to be successful we had shifted from like a two out of ten to an eight nine or ten out of ten except that that idea was still not very commercially viable.
Same idea like better graphics. Do you think that idea is ever going to be commercially viable? Well I mean so not I mean we could have kept going and paid all of our salaries and been happy and it would have been interesting but we had taken by that point like 17 million dollars in VC money. So I felt like it would have been an aberration and responsibility and the kind of contract we made with them to just do that. So we had to think of something else.
So you said 17 and a half million and funding you had you were around 45 employees around the time. So you find yourself in a familiar situation and you have to shut down that game again. What was the toughest part about that decision the second time around? So the second time around it was very different because it wasn't just hey everyone we are now as a group when a switch wasn't working on because there was animators and musicians and writers and illustrators, level designers, a whole bunch of people who just didn't have skills that were transferable to us so a lot of people were going to get laid off. I think there was 35 and in the three and a half years that we have been running the various versions of glitch there was pretty strong and very active robust community.
There wasn't like the couple hundred people who tested game and branding could just start using flicker they were going to disappear. And I think this is a hard thing to relate to or understand if you haven't gone through it and it's maybe somebody that hasn't happened in a long time and might not happen again. Like Tumblr seems like the last platform that had closed communities like that where it's now everything like Instagram is just one world connected to Facebook as well and Twitter is like everyone and there are definitely sub-communities but when communities exist in one specific platform and that platform disappears it's a little bit like that moment in the first Star Wars when Alder on gets blown up like it's just that society that little culture those relationships just won't exist anymore.
So that was very sad but obviously for me it's first of all embarrassing did all this press and made all these claims I had convinced all these people to come and it convinced any time we got any press and it was my head convinced I'm going to do it every time we got invested I had convinced I'm going to do it but more than anything else I had convinced all these people to come work on this and I told this story many times but the day that I made the announcement internally it called this all hands and people already a little bit apprehensive because we've been through a couple of different like here's the last thing we're going to try and there wasn't a day when we normally had an all hands and I locked eyes with someone as soon as they started talking about two or three months before I had convinced to move to a new city with his wife and two year old daughter away from where his in-laws lived and in-laws were helping to take care of the kid he moved to new city bought a house and now I was going to tell him that he didn't have a job anymore it was really really hard.
I think that's the like the impact on me reputationally or financially was in the grand scheme of things and relatively insignificant like I would just bounce back again but it's that's more than just disappointing someone like I was going to come meet you for dinner and I bailed the last minute or something like that this is like I convinced you to change the ultra the course of your life in a really significant way and then didn't it didn't happen so that was very very difficult in the end.
You like a little bit of positive news because we had five and a half million dollars left of that money we're able to shut down in a relatively elegant way so we've made a portfolio site which had everyone's resumes and did a bunch of reference letter writing. and kind of career coaching and helped get everyone a job and in most cases a better job than they had when they were working for us and we are able to give customers the choice of their money back where we could donate it to charity or whatever and that one person Tim leftler and that joining Slack book a year later so that part all worked out too but it doesn't mitigate at all like what it felt like in that moment it was really it was pretty terrible that's pretty heavy.
So how do you go from that terrible moment to launching Slack which reached a billion dollar evaluation and record setting pace of eight months? That worked out super well. We had developed this system that was the proto Slack again 92 I mentioned one of the software network tools that I used was called IRC or internet relay chat and we used IRC at Chinese back the company they made glitch and it's a very old technology so it's with most messaging systems of probably every messaging system you've ever used there's a concept of what's called store and forward so I'm a friend of a message to you but I can't reach you right now like there's no connection to your endpoint your client or your device it'll just be held and then forwarded to you the next time you connect but IRC didn't have that if you weren't connected at the moment that I sent the message you would just never receive it so we built the system to log the messages but once we had the message in database you wanted to be able to search them so we built search on top of that and then like bit by bit kind of feature by feature we built things to integrate with our file server so when someone uploaded a file and we get announced into IRC or if an alert went off in our data center then that would get put into IRC and slowly we developed the system which was like really the foundation of all of the ways in which the company communicated and was really beneficial and so we realized none of us are ever going to work without something like this ever again other teams of eight software developers would probably like it as well and so we decided that's what we're going to do and we thought that one day in the fullness of time if we had every single person who could possibly use this we would have a hundred million dollars in revenue and thereby be a billion dollar company and that just happened very quickly.
Yeah I definitely think the math checks out so it's Slack you created a product that not a lot of companies knew they needed how did you convince them otherwise that was tough the first first like three or four external teams to use like it took dozens of tries like going to their office and showing them and I think we learned a lot there about marketing probably isn't the right term but I think we actually had this problem a little bit with Flickr because Facebook came out and just stole the social photoshide market while Flickr was trying to decide whether it wanted to be social photo sharing or like a community for people who are interested in photography but if you can't explain what you're doing well enough that someone to whom you explain it can go on to explain it to someone else then it's a real problem because otherwise you're going to have to do all the exciting so we struggled to figure out the way to talk about it like what advantages it had what it was for but when you're when it's net new and it's not replacing something else it's very difficult there's I don't know if it's still frequently read but there's a classic book in marketing called positioning Jack Trout and Alan Reese I think and one of the things to talk about is if something's a new concept for you it's almost impossible for it to get purchased in somebody's brain somebody's mind so you have to find something else that they that already exists there and then alter that idea which is why you hear Uber for whatever because if you had to explain the whole thing from scratch it's very difficult it's why you hear like movie pitches that are you know jaws meets star wars or something like that and it's much easier to get that than to start from scratch but it was like it was a real slog to get anyone to even try it and the encouragement thing was once people started trying. it they almost invariably stuck with it they logged in every day it became like it was for us the foundation of how they communicated and so from 2014 to 2017 there was limited competitors for slack giving that it was such an innovative idea but in 2017 when slack had more than 100 million revenue which you predicted 650 employees and evaluation of around five billion dollars Microsoft launched their teams app how did you feel when you found out that app was coming out?
我确实认为数学计算是正确的,所以Slack是你创建的一款产品,很多公司不知道他们需要它,你是如何说服他们的呢?那很困难,一开始前三四个外部团队使用它时,需要尝试了数十次,到他们的办公室展示,我认为我们学到了很多有关营销的东西,可能并不是正确的术语,但我认为我们在Flickr上也遇到过这个问题,因为Facebook推出了社交照片隐藏市场,而Flickr还在尝试决定它是社交照片共享还是一个关注摄影的社区。但如果你不能很好地解释你在做什么,让你解释的人能够继续向其他人解释,那就是一个真正的问题,因为否则你就必须做所有令人兴奋的事情,我们努力找出如何谈论它的方式,它的优势是什么,它的目的是什么,但当它是全新的并且没有代替其他东西时,这是非常困难的,我不知道它是否经常被阅读,但市场营销有一本经典的书叫做Jack Trout和Alan Reese的定位,他们谈论的其中一件事是如果对你而言某些东西是一个新概念,它几乎无法在某人的大脑中被购买,你必须找到其他已经存在的东西,然后修改那个想法,这就是为什么你会听到“Uber for whatever”,因为如果你不得不从头开始解释整个事情,这非常困难,这就是为什么你会听到像“jaws meets star wars”的电影点子,比从头开始要容易得多,但是得到任何人甚至尝试它都是一个真正的挑战,激励的事情是,一旦人们开始尝试它,他们几乎总是坚持使用它,他们每天登录,它成为他们沟通的基础,所以从2014年到2017年,Slack的竞争对手很有限,因为它是一个如此创新的想法,但在2017年,当Slack获得了超过1亿美元的营业收入,你预测650名员工和约50亿美元的估值时,微软推出了他们的Teams应用,你发现他们推出这款应用程序时的感受如何?
I think mostly just good because it validated the idea and we had some advanced notice that it was coming up so we worked with Microsoft on some like early stuff with Microsoft research building question answering bots for first lock and had a pretty good relationship with by name Chilu who was a software exec at Yahoo who was the CTO of Microsoft left around then to go be to take over by do but we weren't especially worried just because when it was the first you know before it was first announced it was called Skype teams and had a pretty different approach and was just so far behind us from a product perspective that we weren't worried about people switching. Okay so now in 2020 how do you feel about Microsoft's team app?
It got a lot better as Microsoft. I think there's a bunch of things that make it much more of a challenge for us today than it was then and it's not just that it's better because it's actually not better enough compared to how it was that any of our large customers could switch to it. Like our biggest single user is IBM, somewhere close to 300,000 daily active users, over 10,000 workspaces and teams is limited to 5,000 users per workspace and you can't federate them together so there's just be no way to support that kind of structure so it wouldn't work for them and there's many other things that are very, very fundamental limitations so for 5,000 people you can have 200 channels and if you want to add a 200 and first you have to hard delete one with all of the messages but none of that really matters in the face of if you want to be able to collaborate on a word doc like with track changes and send it back and forth your lawyers working on a contract or marketing people working on a press release and you are an Office 365 customer you more or less have to use teams now and the 100 million users of Skype for Business are being migrated over to teams because Skype for Business is being shut down so there's a bunch of things that are kind of for us it but maybe most fundamental is we have 12 million that only remember what our public number is on daily active users 12.
作为微软,它已经变得更好了。我认为有很多事情使它比以前更具挑战性,这不仅仅是因为它变得更好了,因为与之前相比,它实际上并没有变得足够好,以至于我们的任何一位大客户都可以转向它。比如,我们最大的单一用户是IBM,大约有30万个日活跃用户,超过1万个工作区,而Teams每个工作区的用户限制是5,000,你不能将它们联合起来,所以根本不可能支持这种结构,因此对于他们来说是不可行的,还有很多其他非常根本的限制,对于5,000人,你最多只有200个频道,如果你想添加第201个频道,你必须硬删除其中一个频道及所有相关的消息,但所有这些在协作处理Word文档时并不重要,就像跟踪更改并来回发送它,你的律师在处理合同,市场营销人员在发布新闻稿,如果你是Office 365的客户,你更或多或少必须现在开始使用Teams,而1亿个Skype for Business的用户正在迁移到Teams,因为Skype for Business正在关闭,所以有很多事情对我们来说很关键,但最基本的可能是我们有1200万个每天活跃用户,只有这个公开数字。
So 12 million and there's at least 200 million people for whom Slack or something like it is the preferred way to work so 200 million people who's working lives are mediated by email and they're moving over I think is inevitable so that's 6% which means 94% of people don't use it yet and if you don't use it and you don't have any idea and you hear that there's two alternatives one Slack and one's teams and because you're an Office 365 customer teams is already free and integrated with all the Microsoft tools then why would you give an evaluate Slack or Microsoft was aggressive in a way that was surprising to a lot of people even who watched the company closely like putting out a press release with our daily active users in it during our quiet period post the listing but if they can put it in press release and tank our share price then and you're not watching this stuff very close you don't have a fine degree resolution then you might think as a customer why would I invest in Slack and I think you know there's going to be out of business in three years like Microsoft's going to inevitably kill them that doesn't be a waste of my time to even look at it and it's not like at that point the fact that they're different really matters to you because you don't use either and it's not really replacing anything so it's much more of a thread now I think we underestimated the degree of importance like the financial times person of the year was Sachin Adela so there's a big right up of that and there's six consecutive paragraphs that are about Slack and there's like there's no other maybe the names of some competitive companies are mentioned in one sentence here and there but like it's it's the biggest chunk of it and so I think that's because all the things that can be used as leverage by Microsoft to expand relationships inside of businesses exchange the email server and the fact that people are very used to outlook is like the principle one that kind of gets them in and that makes it difficult for people to switch and if people stop paying attention to email email declines in relative importance compared to the other software use that's a really difficult position for them so from their perspective I think this is what would cheat Lou thought back like 2016 this is slack successful to the you know to the maximum extent that's an existential threat to Microsoft I don't think that's actually true because so many things so many other things would change in the world on the path to that but I think there is a that is a thought process.
Despite selling out and actually becoming a consultant I studied mechanical engineering and undergrad and as a black engineer I really appreciate what Slack has been doing on from the perspective of diversity inclusion back in 2015 Slack shared a diversity report which revealed that most of their black employees were in technical roles contrasted with a lot of companies that were hired black individuals primarily into administrative roles and in that same report 45% of managers will female females so to a room full of individuals who will start companies or be at companies what advice you have for creating diverse workplaces start early I think that's the biggest thing when we were 20 employees I would say due to the 2030 maybe like wow there's a lot of white dudes and in that case it wasn't too late but it was close to too late you know it was like more of a slug to get started because what happened was you we have one black woman engineer and then someone another one comes to interview and she sees the first one and suddenly it's like a completely different assessment of what's going on here and then there's two and then the third one comes for an interview and it feels like there's community and people talk and have a network so that getting started early I think is the most important thing and I think it can be a kind of a fraught topic I think for people like people aren't sure what to say or they're uncomfortable and I think there's a really pervasive and incorrect belief that you would have to lower the bar to hire someone who isn't like the canonical candidate like the archetypal candidate for this role I think that's usually not the truth for two reasons.
One is you just have to look harder you're going to see more people in fact that can raise the bar but people have different challenges in their life and I don't think you can you know perfectly understand someone's background just from their gender identity or their ethnicity but on the whole to for a woman to get to a certain place in her career they had to work a lot harder than for a black engineer to get to a certain place and in his or her career they had to work a lot harder than this is where it gets fraught in Ben Horowitz's words Jewish Chinese or Indian guys in Silicon Valley because there's just like these these networks that are that are very powerful and you have an enormous advantage so for two people with like equivalent. credentials the person who's probably going to be more talented more capable and had to overcome more obstacles to get to where they are is going to be the one who doesn't have the traditional archetypal presentation. That's amazing thank you for sharing that I'm sure I hope people were taking notes.
So we've gone through the journey of your career you started as a web developer you found in a company that you that was acquired by Yahoo you launched a second company that raised more than $1.2 billion in venture funding and you eventually took that company public you've been a leader throughout this entire time what has changed about your leadership style and what stayed the same. It's always hard to really to to to assess yourself I think I'm relatively self aware even of those things that don't work and it doesn't matter that I know that they don't work I still can't change them but there is a difference in the mechanics of being a leader at different scales because when it's 20 people and we all kind of know each other it's very different like my I say something and then we argue about it maybe I changed your mind and it's all good and you know there's a power dynamic where I'm a CEO and whoever and everyone else is not the CEO but when you get to 500 people or a thousand people where we're at now a couple of thousand people it's very different.
The someone's going to come into a presentation for some new product development and it's like a relatively new designer or engineer or product manager we've never met before. To me this is just like a one more 30 minute meeting in my schedule which is to to to to to to to to to to and for them this is something they've been thinking about for weeks like but probably talked to their spouse about it and they're either excited or they're nervous they want to know so the degree of impact that my words have is like from the perspective of me crazy out of proportion to the amount of action. It's another words like this it's like a super super powerful microphone on at all all the time so if anything's negative or critical if I have a relationship with someone that I've worked together for a long time it's not really a big deal if it's someone that you know that might be the only time they interact with me ever in their whole career and slack or like you know that might be the first year actually they never have a company and they might not have another one for several years it carries a huge amount of weight so it's hard because is that the amount of time we have like including questions from everyone that is okay I'll try to be a little more concise.
I'm reading on Twitter people arguing about Warren's tax plan and someone said something like if Dwayne the Roth Johnson just paid this tax at this rate then we would have an extra $50 million and then that's a much it would cost to solve the plant water crisis and it's not me it's just a totally absurd argument because federal budget is something like $2.7 trillion so $50 million plus or minus is not the reason why that doesn't get solved it doesn't get solved for all kinds of reasons and people think that way all the time that it's just like money or it's just resources for anything significant to happen certainly anything involved dozens of people that alone hundreds or thousands.
我在 Twitter 上看到人们正在争论 Warren 的税收计划,有人说如果 Dwayne the Roth Johnson 只按照这个税率缴纳税款,我们就可以多获得5000万美元,这就足以解决植物水危机,但这个观点完全荒谬。因为联邦预算大约是2.7万亿美元,所以大约增加或减少5000万美元不是导致问题无法解决的原因,问题的根本在于各种各样的原因。人们经常这样思考,认为只需要有足够的钱或资源就可以发生重大变化,但实际上,对于任何涉及几十人甚至上百人或上千人的事件,都需要更多的支持。
The amount of will that has to go in the amount of like selling the amount of vision the amount of like coercion and cajoling and the amount of encouragement and support all of those things is just enormous so the game does change as the company gets bigger and things evolve and I think probably only gets more difficult but that's you know what I've been learning this whole time is how to do that without like crushing people how to do that without creating an environment where it's you know entirely top down like iron fist from above and it can be tough.
Because you know I have a different perspective than anyone else because I see everything so I talk to someone in engineering I get you know that head of sales reports to me head of marketing reports to me head of finance reports to me our general council reports to me so I have a very different perspective than than what is ultimately relatively narrow and generally a better idea what we do because I also talk to customers more than pretty much anyone else other than a sales person and I talk to our investors more than anyone else I talk to our board more than anyone else yes it's really you know I think there are better sources than me for like top 10 tips because I don't none of them seem that simple to me and it's not that they're they're not out there but the real challenge of leadership and maybe there's one book I would recommend which is leadership and self-deception the real like fundamental challenge leadership is the same as the fundamental challenge of just being a human being.
And I think that's so sound a little bit weird perhaps but like living with an open heart and not seeing other people as on one hand either instruments that can be used to your advantage or obstacles that are in the way of something that you're trying to do which is the kind of default judgment of all people with whom you are not close instinctually so like you're on a southwest flight and there's like people are still aborting and the middle seat between you isn't taken you're like please not take the seat please don't take the seat please don't take the seat a person has a whole life you know on their own ambitions and desires and partics and stuff like that but to you in that moment they're just a potential pain in the ass that might take the middle seat next to you and that that's pervasive and when you're really trying to accomplish something it can be very tempting to see people either as instruments or obstacles amazing.
So we're going to go to the audience for we probably have a time for about two questions so hi Stewart I really appreciate your comments on diversity so it makes me feel better about my Stanford Slack addiction my question is what were some of the key and best things you did on the product and design front in the early days of Slack so for example how much of Slack success do you attribute to your personal eye for design versus hiring the best designers versus feature prioritization or even just the inside about having a personality curious what advice you'd share there for aspiring entrepreneurs yeah so I'm much sure I want to like slice it up by who gets more credit but I think the fundamental approach was how much easier can we make people's lives and when I look at other products it's really the I'm trying to think of like the shortest version of this I can it can be an amazing app and if the password reset thing doesn't work and I'm need to reset my password use it then I'm just locked out.
So there's like there's very basic fundamental things that you can you have to get right and which aren't the interesting ones fact someone tweeted something the other day which I liked that kind of illustrates this from a different perspective and it's someone asking Ray Crok the kind of founder and for CEO of McDonald's why was McDonald so successful and he says because we have clean bathrooms and they say that's easy you know that's so simple I don't that doesn't explain it and Ray Crok said are your bathrooms clean and it actually is like a challenge so there's some some real fundamentals but the things that we did that were most successful were those things which made life more convenient for people and one of those was for example typing your password on your phone is a pain so. we'll send you a magic link that logs you in or because for complex reasons most people wanted to have notifications or every message and Slack when they first signed up so they felt comfortable and knew how it worked but we didn't think that was a good way for them to set their preferences long-term after you know a few notifications we would interject and say would you like to switch to our preferred settings and that kind of thoughtfulness or consideration that kind of being thinking of yourself as a host and the customer as your guests I think is the the secret as it were to a good design
and we have time for one more question can you hear me yeah thank you so much for taking the time to speak with us today so in your answer is it was really clear that like what you've been interested in is kind of facilitating communication through different mediums whether it be video games photography you know now Slack was that understanding clear to you through your journey and if not was there like an aha moment that you realized this is what the issue you really wanted to work on was yeah I don't so the desire was there but I don't think I recognize that is as one single thing because Slack is also a massively multiplayer workplace software yeah that's the kind of the the principled distinction between Slack and pretty much every other tool and it is very much like the games that we wanted to play you take objects and you can manipulate them and distribute them and form groups and and all of that but I don't think I really recognize them as being fundamentally similar until much later the thing that I thought as being the common thread was just it's all software and software that groups of people use together to me is the most interesting challenges because it has all the regular challenges of scalability on the one hand and design and usability on the other but social dynamics because of the feedback loop where the output of the system can also be an input to the system are much more difficult to to design for and therefore much more interesting
Amazing, thank you all for the questions. Um, Dharma, you have to pledge a chat with you. It's not often that we get time with a classically trained philosopher, so I have a new spin on our typical lightning round. I'm gonna ask you a few questions that keep me up at night. Is that okay? Cool.
So we'll start with an easy one. Is water wet? Yes. Okay. If soap hits the floor, is the floor clean or is it soap dirty? Soap dirty, yeah. Dirty soap. All right. I have to make sure I pronounce this one the right way. It's expecting the unexpected; make the unexpected expected? No, no, we're going to know. Okay.
Um, final one. You ready? One word or less, what is the meaning of life? Oh, I thought the question was one word or less. Uh, for those of you who read Thug a Sashdatter, familiar with history Buddhism, I'll say 'mu'.
Yeah, we have a minute and twenty seconds, right? So, I would love to hear more. It's funny, uh, there is like a like- when I said before, uh, that American philosophy is really um, boring on the one hand, and you take a while a subject matter, there are- there's an enormous um corpus of research and argument and even books written but certainly like thousands of papers on the question of do holes exist? Like h-o-l-e, like is there such a thing as a hole or is it the absence of something? Unless they swear that is a giant argument.
So, I find it easier just to come down on the side of one or the other. The meaning of life? To love one another. Okay, I like that one. Ladies and gentlemen, Stuart Butterfield. Thank you.