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    Zendesk

    Success Story
    Market Entry Case Study🌍 Denmark 🇦🇺 Australia14 July 20265 min read0 views

    How Zendesk Made Melbourne Its Asia-Pacific Launchpad

    The customer-service software firm that made Melbourne its Asia-Pacific launchpad.

    MARKET ENTRY
    CASE STUDY
    SaaS — customer service and support software
    1
    FOUNDERS
    1
    AU EMPLOYEES

    In September 2011, Zendesk arrived in Melbourne with a team of five and an ambition that went well beyond sales coverage. Within seven years, the Australian operation had beaten San Francisco and Dublin in an internal contest to host one of the company's most strategic engineering hubs — making Melbourne not just a regional beachhead, but part of Zendesk's global product engine.

    Company Zendesk
    Origin Denmark (founded Copenhagen, 2007); HQ San Francisco
    Sector SaaS — customer service and support software
    Entry year 2011
    Entry mode Direct — APAC regional HQ plus a local product development centre
    Outcome Success — Melbourne became a global engineering hub; Zendesk was acquired for $10.2B in 2022

    Background

    Zendesk was founded in Copenhagen in 2007 and relocated its headquarters to San Francisco as it scaled. By 2011 it was one of the fastest-growing SaaS companies in the world, and Australia was already generating meaningful organic demand: Australian businesses were early, enthusiastic adopters of cloud software, and the ANZ market offered English-language customers in a timezone that could anchor an entire Asia-Pacific operation.

    Rather than servicing that demand remotely from California, Zendesk made Australia its first major commitment outside the US and Europe.

    Entry strategy

    A regional HQ, not a sales outpost

    In September 2011 Zendesk opened its Asia-Pacific headquarters at Level 1, 482 Bourke Street, Melbourne, with an initial team of five and plans to double headcount by year end. Positioning the office as the APAC headquarters — rather than an "Australian sales office" — mattered: it gave the local team a regional mandate, budget and seniority from day one.

    The office was led by Michael Folmer Hansen — Zendesk's first-ever employee — who took the role of vice president and managing director for Asia-Pacific, giving the new market a leader with founder-level product knowledge and a direct line to HQ. And Zendesk wasn't starting cold: at launch it already had about 1,200 APAC customers — roughly 700 in Australia and 200 in New Zealand — including Lonely Planet, REA Group and New Zealand Post.

    Product development from day one

    The same month, Zendesk announced an Australian Development Centre in Melbourne, committing to hire around 20 developers by September 2013. This was the tactical masterstroke of the entry: by building product locally rather than just selling locally, Zendesk tapped Melbourne's engineering talent pool, gave the office strategic weight inside the company, and made the Australian operation progressively harder to deprioritise or shut down.

    Partnering with the Victorian Government

    Zendesk worked closely with the Victorian Government as it scaled. When the company moved into a much larger office at 395 Collins Street in November 2015 — with capacity for 200 staff against a local team of about 70 at the time — the opening featured Victoria's Minister for Small Business, Innovation and Trade, Philip Dalidakis, and a formal partnership with the state government. CEO and co-founder Mikkel Svane publicly credited Melbourne's technology talent as the reason for the commitment.

    Government partnership delivered credibility, talent-pipeline support and expansion assistance that money couldn't easily buy.

    Build a senior local bench early

    Zendesk staffed the region with senior operators quickly: in July 2013 it appointed Amy Foo as APAC finance director (covering finance and HR) and Daniel Scheltinga as APAC support and services director, running support teams across Melbourne, Tokyo and Manila, while returned-expat engineer Jason Smale led APAC engineering. By late 2013 the business was adding about 10 new Australian customers a day — growth driven almost entirely by word-of-mouth referrals and self-serve trials converting to paid.

    Winning internal investment

    In 2018 the strategy compounded: Melbourne was selected — over San Francisco and Dublin — as the site of Zendesk's Platform Development Centre, creating 72 new engineering jobs over three years, a win documented by Invest Victoria as a flagship foreign-investment case study.

    Why it worked

    • Regional mandate from day one. The Melbourne office owned APAC, not just Australia, which justified senior hires and real investment early.
    • Engineering, not just sales. Building product locally anchored the operation and created a virtuous cycle of internal investment.
    • Government as a growth partner. The Victorian Government relationship supported each expansion phase and generated sustained local goodwill and press.
    • Riding organic demand. Australian businesses were already adopting Zendesk; the local presence converted grassroots adoption into enterprise relationships.

    Key metrics

    • 2011: APAC HQ opens with a team of 5; Australian Development Centre announced with ~20 developer roles committed by 2013
    • 2011 launch: about 1,200 APAC customers — roughly 700 AU and 200 NZ — incl. Lonely Planet, REA Group, New Zealand Post
    • 2013: about 10 new Australian customers a day, largely word-of-mouth; ANZ customer base reaches 3,500 by 2015
    • 2015: local team of ~70, new 395 Collins Street office with capacity for 200
    • 2018: Platform Development Centre creates 72 engineering jobs over three years — won against San Francisco and Dublin
    • 2022: Zendesk acquired by Hellman & Friedman and Permira for $10.2B
    • 2024: Zendesk Pty Ltd generates A$133M in local revenue with 346 employees

    Lessons for market entrants

    1. Give the first local office a regional mandate — an "APAC HQ" attracts better talent and bigger budgets than a "country sales office".
    2. Put product development in-market early. Engineering roots make a local operation strategically indispensable to HQ.
    3. Treat state governments as genuine partners: talent pipelines, expansion support and credibility all flow from the relationship.
    4. Start small and compound. Five people in 2011 became a global product hub by 2018 because each phase earned the next.

    Sources

    1. [1]Zendesk — APAC HQ launch, Melbourne (press release)
    2. [2]Zendesk — Australian development centre, Melbourne (press release)
    3. [3]Zendesk — Melbourne technology hub & Victorian Government partnership (press release)
    4. [4]Invest Victoria — Zendesk case studies
    5. [5]Wikipedia — Zendesk
    6. [6]Zendesk — new directors for APAC team (press release)
    7. [7]Marketing Mag — Zendesk expands in Australia with Victorian Government grant
    8. [8]IBISWorld — Zendesk Pty Ltd company profile

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