Salesforce Announces the Acquisition of Demandware for $2.8 bn

The acquisition of this multi-billion dollar digital commerce market will extend the customer success platform of Salesforce with new Salesforce Commerce Cloud.

sales force acquires demandwareGreatResponder.com  Salesforce announces the acquisition of Demandware that provides a cloud-based e-commerce platform and related services for retailers and brands worldwide, going public during 2012 after raising $88 million in its initial public offering of $16 a share. Salesforce has announced it will commence a tender offer for all outstanding shares of Demandware for $75 per share, with the deal set to complete by July 31, 2016, the end of Salesforce’s second quarter.

“Demandware is an amazing company—the global cloud leader in the multi-billion dollar digital commerce market,” said Marc Benioff, chairman and CEO, Salesforce. “With Demandware, Salesforce will be well positioned to deliver the future of commerce as part of our Customer Success Platform and create yet another billion dollar cloud.”

As with the Marketing Cloud proposition, Salesforce is seemingly happy to pay healthily above share value to break into new markets when it cannot develop the capabilities organically. The company acquired ExactTarget for $2.5 billion in 2013; this was previously Salesforce’s largest acquisition, which built the foundation of the Marketing Cloud proposition.

“Demandware and Salesforce share the same passionate focus on customer success,” said Tom Ebling, CEO, Demandware. “Becoming part of Salesforce will accelerate our vision to empower the world’s leading brands with the most innovative digital commerce solutions that enable them to connect 1:1 with customers across any channel.”

Demandware currently works with a number of brands around the world, including Design Within Reach, Lands’ End, L’Oreal and Marks & Spencer, to deliver customized experiences for customers across web, mobile, social and in the store. The acquisition is expected to increase Salesforce’s revenues by approximately $100 million to $120 million through the remainder of the financial year.

Salesforce’s acquisition of Demandware, a recognized leader in the space, will extend the company’s CRM leadership and position it to capture this multi-billion dollar digital commerce market with what will be the new Salesforce Commerce Cloud.

The Salesforce Commerce Cloud will be an integral part of Salesforce’s Customer Success Platform, creating opportunities for companies to connect with their customers in entirely new ways.

Salesforce customers will have access to the industry’s leading enterprise cloud commerce platform, and Demandware’s customers will be able to leverage Salesforce’s leading sales, service, marketing, communities, analytics, IoT and platform solutions to deliver a more comprehensive, personalized consumer experience.

Salesforce Selects AWS to Run its Core Services Internationally

The company has planned international infrastructure  services  to run on AWS and these services  includes Sales Cloud, Service Cloud, App Cloud, Community Cloud, Analytics Cloud and more.

salesforceGreatResponder.com  Salesforce announces that it will run some of its core services on AWS in various international markets, as well as continue its investments into its own data centers.

“We are excited to expand our strategic relationship with Amazon as our preferred public cloud infrastructure provider,” said Marc Benioff, chairman and CEO, Salesforce. “There is no public cloud infrastructure provider that is more sophisticated or has more robust enterprise capabilities for supporting the needs of our growing global customer base.”

Though Salesforce would not have appeared to have suffered any serious negative impact from the outage in recent weeks, the move could be seen as a means to rebuild trust in its robustness, leaning on AWS’ brand credibility to provide assurances. The move would also give the Salesforce team options should another outage occur within its own data centers. The geographies this announcement will apply to have not been announced at the time of writing.

“Leading enterprises and ISVs around the world are migrating their business-critical applications to the AWS Cloud to be more agile and efficient, reduce costs, and take advantage of the security, reliability, and broad functionality we offer,” said Andy Jassy, CEO, AWS. “Companies rely on Salesforce to transform their businesses and we are thrilled Salesforce has chosen AWS as their public cloud infrastructure partner.”

Sales Cloud, Service Cloud, App Cloud, Community Cloud and Analytics-Cloud and some others will now be available on AWS, though the move does not mean Salesforce is moving away from their own data centers.

Salesforce already has a strong relationship with Amazon. Many Salesforce services, including Heroku, Marketing Cloud Social Studio, SalesforceIQ and the recently announced Salesforce IoT Cloud run on AWS infrastructure. And Salesforce is Amazon’s company-wide customer platform.

AWS has sophisticated and robust enterprise capabilities for supporting the needs of Salesforce’s growing global customer base. AWS will help accelerate its ability to bring new infrastructure online more quickly and efficiently. Salesforce will utilize AWS in select international markets to help bring new infrastructure online more quickly and efficiently.

Customers can expect that Salesforce will continue to deliver the same secure, trusted, reliable and available cloud computing services to customers, regardless of the underlying infrastructure.

Microsoft Grows Aggressively in SaaS Market 2015

The latest research from the synergy research group finds that the Microsoft is growing in the Software as a Service (SaaS) Market, but Salesforce still is the leader of this market.

SaaS Market 2015GreatResponder.com  Latest data from Synergy Research Group shows that Microsoft is now challenging the position of leader in the enterprise Software as a Service market. In the year 2015 Microsoft increased its market share by nearly 3 percentage points, but it was still a small way at the back of long time leader Salesforce. Though, Microsoft continues to grow its Software as a Service revenue much more speedily.

According to the research, Microsoft established the 2nd top level of increase within the division at 70 % year-on-year, only at the back of SAP who were at 73 %, but still only sits 2nd in the market share rankings. Salesforce is one of only four in the top ten in the division who proved less than 50% growth, however, still accounts for just under 15% of the global market share for Software as a Service. Adobe, IBM, Oracle, Google, ADP, Intuit and Workday complete the top ten.

“In many ways SaaS is a more mature market than other cloud markets like IaaS or PaaS,” said John Dinsdale, Chief Analyst at Synergy Research Group. “However, even for SaaS it is still early days in terms of market adoption. It is notable that the big three traditional software vendors – Microsoft, Oracle and IBM – are all now growing their SaaS revenues faster than the overall market and yet SaaS accounts for less than 8% of their total software revenues.”

The Software as a Service has been indicating strong growth over the past few years, as Synergy calculated approximately this market division has grown by 40% over the last 12 months, and it is expected to be triple over the next five years. The expected growth trends are also supported by a Research by Cisco. Last year the group forecasted that by 2019 59% of total cloud workloads will be SaaS, as evaluate to 45% in 2014.

The research also shows Microsoft as making constructive steps in the customer SaaS market segment beside its enterprise business. Whereas the user segment is approximately a third of the size of the enterprise market, the company’s growth in this division exceeding rivals who at present, have a more secure position in the market.