Salesforce CRM is witnessing a strong adoption of its cloud-based products and solution as customers are undergoing a major digital transformation amid the pandemic-induced travel and office opening restrictions imposed by governments across the world. Moreover, the company’s sustained focus on acquisitions and partnerships is helping it enhance its product offerings and expand across newer markets.
Digitization Fueling Demand for Salesforce’s Solutions
The rapid adoption of cloud-based solutions is spurring demand for Salesforce’s products. The company’s focus on introducing more aligned products per the customer needs is driving its top line.
Its ability to provide an integrated solution for customers’ business problems is the key driver. The firm’s products like Trailhead and myTrailhead are helping companies through their transformation processes as well as increasing the business scale with modern technology.
Salesforce believes digital transformation will consistently open up a huge growth opportunity for the entire industry. As enterprises progress with digital transformation efforts, the use of cloud services is likely to significantly shoot up in the upcoming period.
According to Gartner estimates, the spending on public cloud services will grow from $270 billion in 2020 to more than $397 billion by 2022. Per a Grand View Research report, the global CRM software market is projected to witness a CAGR of 10.6% during 2021-2028. With its SaaS-based CRM and social enterprise applications, we believe Salesforce is well positioned to lead the market.
Acquisitions Perk Up Growth
Salesforce has been strengthening its core competencies by pursuing strategic collaborations and acquisitions. Notably, the buyouts of Slack, Tableau, ClickSoftware, Mulesoft, Datorama and CloudCraze over the last couple of years have been significantly beneficial for the company.
The acquisition of Slack has enhanced Salesforce’s team collaboration software capabilities and added a massive number of global customers. Apart from this, the buyout will help Salesforce in better competing with Microsoft MSFT, which is growing as a chief rival with its Dynamics CRM apps.
The acquisition of Tableau is in sync with the company’s strategy to diversify beyond customer relationship management and provide more data insights to the clients. The acquisition of the tech start-up — Vlocity — in June 2020 is anticipated to help Salesforce enhance its capabilities, and expand the customer base across the communications, media, healthcare, energy, insurance and financial services, and entertainment industries.
We believe Salesforce’s sustained focus on expanding its business through strategic acquisitions and investments will fuel growth over the long run.
Partnerships Help in International Expansion
Salesforce's partnership agreements with the likes of Amazon AMZN and Alphabet GOOGL for the firms’ cloud services have been helping it expand its international operations. The company has also entered into an alliance with Apple, through which it is offering new apps for iPhones and iPads.
Salesforce has also expanded its global strategic alliance with Amazon Web Services to focus on new product integrations that will simplify secure data sharing, and synchronizing across the AWS and Salesforce services.
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