Utah's 'Silicon Slopes' tech industry is gaining momentum and challenging Silicon Valley's dominance.

• Over a decade ago, Adobe established an office in Salt Lake City, which has since grown into a thriving tech ecosystem with over 1,000 big companies and startups.
• In the Wasatch mountain range of Utah, the city of Lehi has emerged as a center for technology companies such as Oracle and Microsoft.
• Tech jobs are experiencing growth in the area, although it may not match the magnitude of California's Silicon Valley.

CNBC's quarterly Cities of Success series examines cities that have evolved into thriving business centers, drawing in capital, corporations, and talent due to their entrepreneurial mindset.

The tech scene in Salt Lake City is booming, with its ecosystem, known as Silicon Slopes, becoming a thriving network of startups and big tech companies over the past two decades. This rapid growth has earned it the top spot on Wall Street Journal's list of hottest job markets in 2023.

In the development of Silicon Slopes, companies such as Adobe played a crucial role. In 2009, Adobe acquired web analytics company Omniture for $1.8 billion, which allowed the software giant to establish a campus in Lehi, just 30 minutes south of Salt Lake City.

In 2009, Adobe was primarily orchards and farmland, according to Wade Sherman, Adobe's senior vice president and general counsel, who has been with the company for nearly 16 years since joining through the acquisition of Omniture.

In 2012, Adobe opened a 280,000 square-foot building, and in 2022, the company expanded with a second phase, adding a 162,000 square-foot facility. As a result, Adobe can now accommodate an additional 1,000 employees, bringing its total workforce to around 2,000 employees.

Adobe was the first to establish a presence in Lehi, laying the groundwork for the tech industry's growth and expansion into what it is today. Now, the Silicon Slopes ecosystem boasts over 1,000 companies.

The nickname "Silicon Slopes" refers to the cities in the Wasatch mountain range, including Draper, Lehi, Orem, and Provo. The hub of the ecosystem is Lehi, home to major tech companies like Microsoft and Adobe. This tech cluster has provided an ideal environment for startups to flourish within the Silicon Slopes ecosystem.

"Brad Rencher, CEO of HR and payroll company BambooHR, stated that he was present on the day Adobe made the decision to construct the building. He added, "It has been immensely enjoyable to observe the growth of companies and structures surrounding that area.""

Rencher, who spent over a decade at Adobe before becoming CEO of BambooHR, attributes Adobe's arrival as a catalyst for Silicon Slopes growth. "That was a pivotal moment in the history of Silicon Slopes," he said. "Since then, people have taken that torch and run with it."

Silicon Slopes is proving to be a powerful force, as evidenced by Bamboo HR's 1,100 employees in Utah and its annual recurring revenue of over $250 million, according to Rencher.

Sherman emphasizes the need to acknowledge key differences when making comparisons to Silicon Valley.

""Although it is not yet as large and expansive as Silicon Valley, the level of passion, energy, and innovation among its people is impressive," he stated."

According to CBRE's annual scoring tech talent report, Salt Lake City ranked 12th in North America for labor market conditions, costs, and quality for tech workers. The city experienced a 12.9% growth in tech jobs from 2019 to 2023, as stated in the report.

Catherine Wong, COO & chief product officer at Entrata, who has built her career in the Silicon Slopes ecosystem and previously worked at Adobe, Omniture, and Domo, predicts further growth.

In 2021, Entrata raised $507 million in a funding round, led by private equity firm Silver Lake. As of October 1, 2024, Entrata is the second most funded company in Utah, according to CB Insights.

"The ingredients are all here," said Wong, "we have the funding pipeline, the educational institutions, and the culture."

Vivent, a smart home tech company, was founded by Todd Pedersen in 1999, predating Adobe's move to the Salt Lake area.

"According to Pedersen, there was no venture capital to invest in the state of Utah back then, and no one was interested in doing so. The only option was to grow the business through cash flow or not have one at all."

In 2012, Blackstone, a private equity giant, purchased Vivient for $2 billion, attracting attention to the company's success.

"As success accumulates, it creates a snowball effect, attracting more success," Pedersen stated.

The leaders and entrepreneurs of the city hope that the snowball effect will continue to roll down Silicon Slopes.

Sherman expressed pride in the pioneer heritage of the Silicon Slopes ecosystem.

Adobe did not journey to Salt Lake City in a covered wagon, but the company bravely laid the groundwork for other daring entrepreneurs to follow in their footsteps.