aquisition

  • Salesforce to buy Mulesoft

    After last week’s announcements big Salesforce announcements relating to Dropbox, CloudCraze and Salesforce Essentials. It appears that 2018 could be shaping up to be a big year for acquisitions… As Salesforce has announced they will buy Mulesoft.

    UPDATE: It has now been officially announced, that Salesforce will acquire Mulesoft for $6.5bn (source here). Previously, Business Insider had confirmed that Salesforce was working on a big deal, but they couldn’t confirm the acquisition target was Mulesoft.

    Is 2018, the year to buy?

    After a quiet 2017 on the acquisition front. We have now seen a number of purchases early on in 2018, is this just the start of a big year of acquisitions?

    With CloudCraze announce just last week, focusing on B2B e-commerce. And Attic Labs adding to the Quip offering. Could we see Mulesoft being added soon?

    When this deal closes, it will be one of Salesforce’s largest purchases to date, coming in at an estimated $6.5bn.

    Also, this would be another acquisition which was initially funded by Salesforce Ventures. As Mulesoft received $128m in funding from Salesforce Ventures back in 2015. (Look out Dropbox!)

    Salesforce to buy Mulesoft – but what is Mulesoft?

    Salesforce to buy Mulesoft for $6.5bn
    Mulesoft is in target.

    Mulesoft has created a cloud platform called Anypoint. As a platform, this aims to facilitate data integration across multiple systems. And it is targeted at enterprise companies, counting Coca-Cola, McDonald’s and Spotify as customers.

    By using published APIs for applications, the platform takes a fair amount of the development out of connecting systems together. In turn, this helps speed up the delivery time to integrate systems together.

    Mulesoft is also behind the Dataloader.io platform, which many businesses use for admin data loading tasks, instead of the Apex Dataloader.

    Why would Mulesoft help Salesforce?

    As we know Salesforce is huge in the enterprise CRM market. This is a market which also typically has multiple systems which need to integrate with each other, be it CRM, ERP or general database systems – ultimately there needs to be a connection where data will be synchronised.

    There are a variety of tools you can use. But many of them require a developer to create and maintain. I have seen a number of different solutions to this problem over the years. Though tools like Jitterbit, Boomi and Mulesoft have taken a page out of Salesforce’s book and have reduced the development overhead needed to integrate often complex systems.

    Where does this help Salesforce though?

    As we have seen over the last few years, there is a push from Salesforce to support Big Data Objects, External Objects with oData and Lightning Connect. It is all about data!

    This is where you can imagine – a platform like Mulesoft would be an add-on subscription. ‘Integration Cloud’ anyone? But much like Wave Analytics is to Reports and Dashboards. Mulesoft would be in a different league to the existing Salesforce solutions. (Also no doubt, Mulesoft would have a side benefit for Wave Analytics = more data! More sources! )

    The value for Salesforce also lies in being able to help customers, integrate and connect systems to the base CRM system. After all, if you get customers to continue to integrate Salesforce in their IT infrastructure, you make it harder for them to move away from Salesforce… And there is a lot of money in that!

    Personally, I would love to see how other add-ons, like Einstein, could in turn be used to make this even more compelling in the future!

  • The week in review (Salesforce buys CloudCraze & drops $100m on Dropbox IPO)

    Well it goes a few weeks with nothing being announced and then **BAM** three big announcements within a week.  This week for Salesforce Briefs, we look at the big announcements in the Salesforce universe.  As per predictions for 2018, this week we see Salesforce announce the second major acquisition of 2018 (the first being Attic Labs) – announcing they are buying CloudCraze.  Salesforce also announced it was planning to deepening integration ties with Dropbox, and also splashed a cool, $100m IPO investment in the company.

    To top off the week, Salesforce has also announce the retirement of Desk.com and SalesforceIQ.  While announcing a new Salesforce Essentials bundle, aimed at small businesses.

    Read on for all things Salesforce, this week.

    Acquisition #2 for 2018: Salesforce snaps up CloudCraze

    Salesforce has made a huge play for the e-commerce market this week.  This week announcing that Salesforce buys CloudCraze.

    CloudCraze is the B2B e-commerce solution for a number of household brand names like Coca-Cola.

    Salesforce continues on aquisition path in 2018. Salesforce buys CloudCraze
    Salesforce buys CloudCraze

    It is yet another acquisition that first started with an investment from Salesforce Ventures (in 2017).

    So what is the play here?  Well it is clear that Salesforce is beefing up its Commerce Cloud offering.  This acquisition feels very similar to past acquisitions of Pardot and Exact Target, allowing Salesforce to tackle the B2B & B2C markets.

    Also as Salesforce continues to aim for growth towards $60bn by the 2030’s, one way to do that is to grow via acquisitions.  Just with the added advantage that also helps to diverse the market they cover…  So expect to see more acquisitions this year.

    For an interesting take on this, read on here at CRN or the statement from CloudCraze and Salesforce here.

    Salesforce drops $100m on Dropbox & announces new integrations

    After first announcing a deeper level of integration with Dropbox for Marketing Cloud, Commerce Cloud and Quip.  Salesforce has followed up that announcement by investing $100m in Dropbox.

    Will this be a potential acquisition in the future too?  It is too early to tell, but I would love to see it drive Salesforce to ‘catch up’, as the the cost of extra data storage from Salesforce is prohibitively expensive…

    This potentially values Dropbox’s at anywhere between $7-8bn, which is staggering for a company that is not making a profit!

    Additionally, SalesforceBen and ZDNet has a good breakdown of the integration with Dropbox.

    Retirement for Desk.com & SalesforceIQ, but new Salesforce Essentials…

    It is the end of the road for Desk.com and SalesforceIQ (well it will be in March 2020), as Salesforce has also announcement the retirement of Desk.com, SalesforceIQ and a number of other small business products.  These are products aimed at the Small/Medium Business (SMB) market, where customer either don’t want or need (or can’t afford) a full Salesforce Sales/Service Cloud solution…

    Instead they have announced a new Salesforce Essentials SMB package aimed to getting small businesses onto the Salesforce ecosystem quicker, with an offering that is a more ‘out of the box’ solution that needs less setting up.

    Retirement of Desk.com was announced this week.
    Sample of Desk.com with Jira

    For a quick history lesson, Desk.com (or Assistly as it was called) was originally bought back in 2011, to help bolster Salesforce’s customer service/support credentials for small businesses.  Particularly if they couldn’t afford/had no interest in Service Cloud.

    SalesforceIQ product to be retired.
    SalesforceIQ from email to mobile… (Source: Salesforce)

    While SalesforceIQ was aimed at the sales side of the SMB market.  Attempting to streamline emails and drive sales productivity for the SMB market.  Surprise, surprise it was also a previous acquisition.  And it was brought into the Salesforce ecosystem back in 2014, after Salesforce bought RelateIQ.

    Additional reading, can be found at TechRepublic and Diginomica.

  • The week in review (Salesforce buys Attic Labs & the move into Salesforce Tower begins)

    This week in Salesforce Briefs, we jump into the latest news from the Salesforce ecosystem.  This week we see Salesforce back on the acquisition path acquiring Attic Labs.  Salesforce also not happy with resting on its laurels, has also has announced plans to be a $64B company.

    To top it off this week, the move into Salesforce Tower has begun and we also learn that Salesforce is planning to ditch the Oracle databases…  So read on for all things Salesforce this week.

    First acquisition of 2018: Salesforce buys Attic Labs

    Remember the buying spree Salesforce went on in 2016?  Part of that buying spree, was the acquisition of Quip for US$750m.  But today, Salesforce announced a new companion to the Quip family by buying Attic Labs.

    noms from Attic Labs
    noms from Attic Labs

    Who are they?  Well Attic Labs had an open-source product called Noms.

     

    Aside from a cute logo, Salesforce bought Attic Labs for the product itself which is a decentralised database.  Allowing users to synchronise any changes made to a shared document, even when a users are offline for any duration of time.

    If you have seen any demo of Quip, one of the platforms key features is the ability to share documents and sync changes.  So Noms will no doubt allow Salesforce to take the Quip platform even further in the future.

    (Refer Crunchbase for more.)

    Salesforce revenue growth targets… Target for $60b set!

    Salesforce has never hidden its lofty ambitions when it comes to revenue targets.  Announcing at Dreamforce this year they on track for the $10b revenue target for FY17/18.  But in news this week, Salesforce are setting their revenue target that by 2034 they will achieve $60b in revenue!

    Photo: Brent Leary, CRM Essentials (Sourced from Techcrunch)
    Photo: Brent Leary, CRM Essentials, Sourced: Techcrunch

    Personally my mind can’t even comprehend that figure.  That is the GDP of a small country!  Luxemberg, Panama, Costa Rico and Uruguay all have around $60b in projected GDP for 2017.  And that $60b is Salesforce’s own revenue target, not how much the Salesforce ecosystem would contribute across the world…

    (Read more over on Techcrunch.)

    Salesforce move into Salesforce Tower

    Salesforce started the process of moving into the new Salesforce Tower in San Francisco this week.  The 61 story building, which towers over the San Francisco skyline is anything but ordinary.  So in typical Salesforce fashion, it wasn’t any ordinary office relocation.

    To mark the occasion Salesforce had a DJ on-site to help get the party started, staff had an opportunity to also dance next to an augmented reality version of Cody.  I mean who wouldn’t want to dance alongside an augmented reality version of Cody?

    What a way to start your day in a new office!? 🙂

    (Read more here.)

    Salesforce to ditch Oracle?

    Since time began (well at least for our Salesforce-world), Salesforce and Oracle have been at loggerheads with each other… Well more so Marc Benioff and Larry Ellison.  But truth be told, underneath Salesforce is an Oracle database powering every transaction that gets processed.

    Salesforce has been using Oracle technology to build the Force.com platform, and in the process still contribute hefty sums of money to Oracle’s revenue.  Due to this system architecture – which sits underneath Salesforce’s own platform – there are a number of limitations to what Salesforce can ultimately develop.

    This can explain some of the ideas we see on the IdeaExchange, and why we think it could be such a simple change to make, it still seems to stall and not get delivered. You can listen a panel allude to some of the restraints they have on the platform in the True to the Core discussion from Dreamforce this year.  Along with a number of really useful insights into the future of Force.com as a platform…

    But getting back on track, the tide might be turning and Salesforce is apparently looking to develop its own base database and remove Oracle from the picture.  What this means in the long term, should be a more responsive platform overall and give Salesforce more flexibility with their own platform.

    (Read more from CNBC or CNBC.)

     

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