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Salesforce

Company

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The developer of the CRM system of the same name provided to customers only according to the SaaS model.

Content

Revenue and Net Profit billions

Number of employees
2015 year
3973
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Assets

+ Salesforce

According to Frank Skavo, the analyst of Strativa, Salesforce.com actually became the first who turned a cloud into the viable platform of corporate applications. To achieve it, in Salesforce.com decided to get rid of traditionally bulky user interfaces of CRM systems and borrowed the principles of design the consumer websites, including Amazon and Facebook.

Performance Indicators

Main article: Financial performance of Salesforce

2019: Growth of revenue by 29% to $17.1 billion

In 2020 financial year which came to the end at the end of January of the 2020th calendar revenue of Salesforce reached record $17.1 billion, having increased by 29% of rather previous year.

Sales of subscriptions for the software and services on support of products brought to the company an annual income in the amount of $16.04 billion that for 29% exceeds an indicator of year prescription. In the direction of professional services the 21% growth of turnover — to $1.06 billion is registered.

According to data from financial statements, the country of North and South America brought the companies of 71% of revenue according to the results of 2020 reporting year or $12.05 billion. The previous year these indicators were measured by 71% and $9.45 billion.

Sales to the company in Europe increased from $2.55 billion to $3.43 billion and provided the company with revenue for 20%. In the Pacific Rim the amount of business of Salesforce in 2020 to a fiscal year was $1.62 billion, having increased concerning revenue of the 2019th in $1.28 billion. 9% of sales of IT vendor were the share of this region.

As for products, the most part of revenues of the company is still created by the solutions Sales Cloud (cloud services for the organization of sales and marketing) — $4.6 billion in 2020 financial year were earned from them. In the 2019th sales equaled $4.04 billion.

The solutions Service Cloud generated the companies $4.67 billion annual revenues against $3.62 billion a year ago. In the direction of Marketing and Commerce Cloud growth of turnover from $1.9 billion to $2.51 billion is registered. At last, in the Salesforce Platform and Other segment revenue increased significantly too — from $2.85 billion in 2019 to $4.47 billion a year later.

2020 Salesforce completed a fiscal year with net profit in the amount of $126 million that strongly falls short of profit in the 2019th. The company did not state the reason of this recession in the financial report.[1]

Company takeovers

Main article: Absorption and asset sale of Salesforce

History

2020: Large-scale expansion to EMEA

On May 26, 2020 it became known that Salesforce intends to begin large-scale expansion in EMEA region — for this purpose the company created the advisory board on business development in this region which was headed by Alex Dighton, the president and the director of the strategy of Salesforce.

At the end of 2019 Salesforce recorded the highest growth rates in EMEA. The company said that now help the clients with Europe, in the Middle East and in Africa to be recovered after COVID crisis, and will be to find a task of council methods to do it more effectively.

Salesforce begins large-scale expansion to EMEA
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Knowledge and experience of advisory board members will help us to overcome unprecedented difficulties which change our world — the president and the chief executive officer of Salesforce Gavin Patterson commented.
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In addition to Dighton, will enter into council: Stefan Haydenraykh, Jane-Ann Gadiya, Ana Garcia Fo, Harald Krueger, Peter Lescher, Guillaume Pepi, Francesco Trapani, Veronique Vail and Alexander Vinendts.

Stefan Haydenraykh will become vice-chairman of the board. He joins the board of a number of the companies, including EQT, Perella Weinberg and EMH Partners. From 2004 to 2011 was the CEO of Hero, and during the period from 2012 to 2019 — the head of Beiersdorf.

Other members of council held and continue different executive positions of the different companies. Many of them in the past were chief executives.

So, Jane-Ann Gadiya till March, 2020 headed the British division of Salesforce, Ana Garcia Fo is included, in addition, into government of the French telecom operator of Eutelsat, Harald Krueger is the former chairman of the board of BMW, Peter Lescher is the former president and the chief executive of Siemens, Guillaume Pepi is the former French official, Francesco Trapani is the former chief executive of Bulgari and the board member of Tiffany and Co, Veronique Vail is the former top manager of JP Morgan, and Alexander Vinendts is the former chief executive of Aegon.[2]

2019

The average salary — $150 thousand.

In September, 2019 the recruiting Glassdoor portal published the rating of the American companies with the greatest salaries.  In Salesforce the annual average salary of employees made $150,000. Read more here.

Salesforce joined Hyperledger

In the middle of June, 2019 Norilsk Nickel and also Microsoft and Salesforce companies joined consortium Hyperledger. New participants of the organization will pay membership fees and to develop new applications using Hyperledger. Read more here.

Staff increase on 1500 people

On January 18, 2019 Salesforce announced a personnel increase on 1500 people. New jobs will be created in Ireland therefore the staff of the company in this country more than will double.

According to the Reuters news agency with reference to the statement of Salesforce, to the statement for growth of number of employees in Dublin worked 1400 people there.

Salesforce announced a personnel increase on 1500 people

New specialists are invited to positions in the field of sales, software development and business services. The initiative of Salesforce was one of the largest investments into labor power in Ireland for previous years.

The company creates new jobs within the planned moving to a new campus nearly 40 thousand square meters in the north of the Irish capital. Office complex consisting of four buildings will be constructed in the middle of 2021. This campus will become the regional center for personnel of Salesforce in spheres of sales, customer service, technical and business operations.

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Europe is the most fast-growing region of Salesforce, and Ireland played a significant role in our success — the president of the international business of Saleforce Miguel Milano said.
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Risk of an exit of Britain from the European Union and a possibility of escalation of global trade  war threaten open economy of Ireland, however it does not stop the international corporations from arrival to the country or business developments there. The companies are still attracted by a low rate of corporate tax in  Ireland  — 12.5%.

By the end of 2018 the total number of personnel at the Irish offices of the foreign companies was about 230 thousand people that corresponded to about 10% of all working population.

Meanwhile, on January 18, 2019 Salesforce announced providing a grant in the amount of 878 thousand euros the Irish charitable organization Educate Together.[3]

2018

Integration of technologies of Apple and creation of joint SDK

On September 24, 2018 Apple and Salesforce announced large-scale cooperation in the corporate sector. Within joint work of technology of Apple will be closely integrated with business software of the partner and also the SDK tools by means of which developers will be able to create for iPhone and iPad of the application with a cloud platform from Salesforce in a basis will be released.

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Thanks to this partnership we integrate possibilities of the host of the CRM platform with the best devices for business which iPhones and iPad are —  the head of Salesforce Marc Benioff says. — Having combined efforts, Salesforce and Apple open a new era of mobile innovations, giving opportunities developments of native applications for iOS and helping millions of people to master skills which will be demanded in the future through Trailhead.
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Salesforce will integrate Siri and also other technologies of Apple with the business software

Exit of the processed mobile application of Salesforce for iOS at the beginning of 2019 will become one of the first results of cooperation. It will receive the fast commands Siri, Face ID, a business chat and other functions which are available in the Apple operating system and which will be implemented further into other corporate solutions of Salesforce. Joint development of the different applications which are carrying out specific objectives of certain clients is planned.

Until the end of 2018 the companies promise to release the joint Salesforce Mobile SDK optimized for the Apple Swift programming language. By means of these tools developers will be able to create the IOS-APPLICATION using Lightning Platform cloud  from Salesforce as a server part.

By the end of September, 2018 5 million developers whereas applications for devices of Apple write about 20 million independent programmers and the companies work with Lightning Platform.

Creation of a training course on application development for iOS in Trailhead — the free training web resource from Salesforce will become one more point of the announced partnership.[4]

Keith Block is appointed the second CEO of Salesforce.com

On August 7, 2018 Salesforce.com had the second CEO Keith Block who was raised from a position of the operating officer. Thus. the company two persons — Block and Marc Benioff will direct. The last, heading Salesforce.com from foundation of the company in 1999, remained a chairman of the board of directors. Read more here.

Employees protest against work with the U.S. Government

At the end of June, 2018 it became known that more than 650 employees of Salesforce filed a petition to the head of the company Marc Benioff in whom they expressed the discontent with cooperation of the company with boundary customs service of the USA (CBP). According to Buzzfeed, the company signed with department delivery contracts of the software on personnel recruitment and also development of tools for management of boundary activity and involvement of citizens.

Earlier the staff of the companies Microsoft Amazon and also spoke against their companies delivered technical solutions to the border services of the USA.

Marc Benioff

Employees said that, it is necessary to bear responsibility for the created technologies and to consider the purposes for which they are used. They consider that their developments are used in the immoral purposes contradicting our fundamental values. The policy of separation performed by immigration and customs services by order of the government means.

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In view of the separation of children with parents performed on border we believe that the management of Salesforce should repeal contracts with CBP and speak against similar actions, said in the petition of personnel.
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The representative of Salesforce commented on the address of employees in Buzzfeed conversation, having said that the company "is proud that her employees are not indifferent people who directly express the opinion, and will continue discussion of it and other important issues".

Earlier in June, 2018 the U.S. President Donald Trump under pressure of the public was forced to cancel policy of separation, but return of children to parents can last long because of bureaucratic delays.

Staff of Salesforce said that they also oppose present policy within which children migrants are held in custody together with their families.[5]

Opening of the highest building in California

On May 22, 2018 the Salesforce company officially opened the highest building in California — Salesforce Tower. It includes 61 floors, and the general height is 1070 feet (about 326 meters).

Salesforce Tower broke the record of the 260-meter building of Transamerica Pyramid which was the headquarters insurance and  Transamerica investment company.

Salesforce Tower is the highest office building in California

Formally Wilshire Grand skyscraper (338 meters) located in Los Angeles remains the highest building in California, however at its top more than 50-meter spike therefore the leader consider Salesforce Tower is located.

Salesforce began to build this building in 2013. Then it was reported that the company will spend for the project about $680 million, including $560 million for lease and $130 million for adaptation of premises under the needs. The project is implemented together with builders Boston Properties and Hines who will hand over to Salesforce office space within 15.5 years. How many staff of the company will work in the new headquarters, is not specified.

Some workers moved in Salesforce Tower in January, 2018, but construction is final and opening of a skyscraper took place four months later.

In the building high-speed elevators which rise from the first by the last floors in only 39 seconds are installed. People who already used these elevators, say what during rise at them stuffs up ears.

Around Salesforce Tower other high rise buildings built on the soft soil and sand on the edge of the gulf are. They are the character of modern San Francisco, but also constitute potential danger for the city located in the territory where often there are earthquakes writes  The New York Times.

San Francisco lives with confidence that the big earthquake will occur in the city sooner or later, but at the same time more and more skyscrapers appear from behind serious deficit of housing in the country there. In spite of the fact that in the USA there are strict construction standards, they do not guarantee protection of buildings against earthquakes though many inhabitants also trust in it. Authors of the Salesforce Tower project in attempt to protect the building from natural disasters created for it the biggest base in the city.[6]

Average length of service of employees — 3.3 years

In April, 2018 it became known that the staff of Salesforce works in the company of average about 3.3 years. Read more here.

2017: Enticement of staff of Microsoft

In July, 2017 Salesforce.com began to invite to work of the staff of Microsoft who got laid off. It is about sales specialists.

Here what was written on the Twitter blog by the cofounder, the chairman of the board of directors and the CEO of Salesforce.com Marc Benioff:

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Dismissed from Microsoft? Join the first CRM company. You give to clients success every day. Work and share experience within the position
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The head of Salesforce.com Marc Benioff made public job invitation for the dismissed employees of Microsoft

Marc Benioff asked applicants to send the summary to e-mail of Jobs@Salesforce.com. Microsoft abstains from comments about started by the competing company of an initiative of enticement of employees.

At the beginning of July, 2017 Microsoft announced reduction of 10% of a team of experts on sales therefore works lost about 5 thousand people. Also the Chief information officer Jim DuBois was dismissed, however it is not clear whether this leaving was connected with reorganization of the company.

Salesforce.com specializes in development of solutions for automation of sales therefore the personnel dismissed from Microsoft can be useful to the company. Especially, as notes the Fortune edition, not only sales departments in traditional sense, but also sale engineers and employees of a support service got laid off.

In 2014 with Microsoft and Salesforce.com began close cooperation on different areas. Rumors went that Microsoft can purchase Salesforce.com for $55 billion, however did not conclude the bargain because of high cost. The relations between the companies worsened after Microsoft purchased business social network LinkedIn for which Salesforce.com also applied. Then Marc Benioff began to accuse Microsoft of monopolism and complained to the European authorities that merge of Microsoft and LinkedIn will constrain development of healthy competition.[7]

2016: Lease of DPCs of Amazon for $400 million for 4 years

In May, 2016 Salesforce.com announced the conclusion with Amazon of the cloud contract worth $400 million thanks to which the first expects to strengthen the international expansion.

Under the terms of the agreement, Salesforce.com will use cloud infrastructure of Amazon Web Services (AWS) for SaaS services, including Sales Cloud, Service Cloud, App Cloud, Community Cloud and Analytics Cloud.

Salesforce.com and Amazon concluded the cloud bargain for $400 million

Salesforce.com has own data centers which the company uses for work of the services. However some products of vendor are started at others computing powers. To it a number of services of Internet of Things and also a cloud platform for Heroku application development belong. The last is based on AWS within several years what became known only at the end of May, 2016.

As notes the The New York Times edition, the new agreement with Amazon is remarkable the fact that for the first time key services Salesforce.com will work at others computer systems. The company will seize the opportunities of AWS for expansion of business in Canada and Australia.

According to the founder and the CEO of Salesforce.com Marc Benioff, the company studied a possibility of similar cooperation with Microsoft and Google, but gave preference to Amazon as the company is in the lead by quantity of proposed solutions and low cost of services.

The contract between Salesforce.com and Amazon is expected four years. At the same time Salesforce.com will draw a conclusion concerning efficiency of partnership within the first year and can expand it further that will lead to transaction value addition. So far it is about $400 million[8]

The analyst of Constellation Research Holger Müller (Holger Mueller) notes that Salesforce.com became the first large supplier of the corporate software who placed the services in cloud infrastructure of Amazon from the moment of similar placement by Infor company several years before.

2015

Salesforce.com is going to bypass SAP in Germany

On March 28, 2015 one of top managers of Salesforce.com told about plans of vendor in the European market of software. The American company hopes to become the biggest seller of the software in Germany, having selected this rank at local SAP.

"In Germany we want to become the largest software company by the amount of sales" — the head of the European representation of Salesforce.com Joachim Schreiner said to the German weekly publication Wirtschafts Woche, without having specified at the same time terms during which the company expects to achieve an assigned task.[9]

According to Shrayner, the German market of software is one of the strongest in the region. Annual average growth rates of volume of business of Salesforce.com in Europe exceed 30%, the head of local division of the company noted.

The head of the European office Salesforce.com said that the company hopes to become the biggest seller of software in the German market

If Salesforce.com wants to exceed SAP in Germany, then the American producer needs to increase sales in the country several times. In 2014 SAP earned in the homeland about 2.6 billion euros at total revenue in 17.6 billion euros. Salesforce.com disclosed the annual amount of sales only in the European market — $1 billion at total sales in $5.4 billion.

According to the results of 2016 financial year which will last until the end of January of the 2016th calendar Salesforce.com predicts revenue in the amount of $6.52 billion. What share of income in Europe the company expects, she does not specify.

The chief executive officer of Salesforce.com Marc Benioff repeatedly spoke about superiority of his company over competitors. According to the head, Salesforce.com sells cloud solutions which any other company in Europe, including SAP is not able to offer.

Also Benioff spoke the competition to Oracle, having called a cloud product of vendor Oracle Fusion too difficult and tangled for clients. At the same time the former head of Oracle Larry Ellison said that between the companies persistent fight was started: both Oracle, and Salesforce.com predict sales of SaaS solutions and PaaS in the amount of more than $1 billion in 2015. It is curious that Ellison mentioned a name of the competitor in the financial statement of Oracle that meets rather seldom.

Rumors about possible sale to the company

On April 29, 2015 in media information that Salesforce.com can be sold to large IT corporation appeared. This news provoked growth of stock of the American developer of customer relationship management systems and partners to record value.

According to Bloomberg with reference to the people familiar with a situation, Salesforce.com asked for the help financial advisors in order that those helped to estimate the companies the arriving offers from potential buyers. Does not call names of the advisers and the companies interested in acquisition of Salesforce.com, news agency.[10]

Salesforce.com can be sold to IBM, Microsoft or Oracle

If someone purchases Salesforce.com, this transaction will be the largest for all history of the market of software

By data Reuters, the most obvious candidates for absorption of Salesforce.com are Oracle Microsoft, SAP and IBM. These companies or considered the possibility of the transaction, or still study it, notes the edition, referring to the sources close to these IT giant.[11]

According to the analyst of FBR Capital Markets Daniel Ives, the market of cloud computing is on consolidation thresholds therefore large purchase is quite expected here.

Against the background of rumors about sale of Salesforce.com of a stock of the company on April 29, 2015 rose by 17.3% and reached a record high of $78.46. At the time of the termination of exchange biddings securities of the company stopped at the level of $74.65 that is 11.6% more in comparison with April 28. At the same time market capitalization made nearly $48 billion.

Taking into account this financial indicator purchase of Salesforce.com if it takes place, can be the largest for all history of the software market. Some companies are able to afford such transaction, the analyst S&P noted Capital IQ Scott Kessler. His colleague Brent Thill from UBS considers improbable sale to so big company as Salesforce.com.

Whoever purchased this vendor, the buyer will receive a huge boost in development of cloud business. Large players of this market already have own CRM products, but all of them concede to Salesforce.com on a market share, reports the USA Today edition with reference to data of analysts of Gartner.[12]

Microsoft gave $55 billion for Salesforce.com, but refused to it

On May 22, 2015 it became known of negotiations on merge of Salesforce.com and Microsoft. The companies could not reach the agreement because of disagreements in a financial question.

According to CNBC TV channel with reference to the sources familiar with a situation, spring of 2015 of Microsoft and Salesforce.com held "thorough negotiations" which were not closed by the conclusion the deals. The matter is that the founder and the chief executive officer of Salesforce.com Marc Benioff did not accept the price which was offered by Microsoft for purchase of the company — $55 billion Benioff expected to receive at least $70 billion.

The head of Salesforce.com Marc Benioff estimated the company at $70 billion

Conditions of Microsoft provided exchange of 5.7% of the stocks Salesforce.com of Mark Benioff on a share in Microsoft thanks to what he could participate in management of software giant. Cash payments relied other shareholders of Salesforce.com.

It is noted that though the companies did not reach the agreement and did not return to its repeated discussion, negotiations between them came to a stage of consideration of parts that speaks about gravity of intentions of Microsoft. As of May, 2015 the corporation has a stock of money and their equivalents in the amount of $95 billion, and it means that the Windows producer quite is able to afford acquisition of so expensive company as Salesforce.com.

At the time of the termination of biddings on May 22, 2015 when journalists announced failure negotiations of heads of Microsoft and Salesforce.com, actions of the last grew in price almost for 3%, and market capitalization exceeded $49 billion. The quotations of Microsoft, on the contrary, dropped on — by 1.1%, and capitalization — to $380.5 billion.

According to CNBC, the CEO of Microsoft Satya Nadella somewhat were against the conclusion of so large deal as purchase of Salesforce.com, and doubted its favorable effects for Microsoft. Resumption of negotiations between the companies is not expected in the nearest future, the interlocutor of TV channel notes.[13]

Head of Salesforce: SAP is afraid of us

On July 2, 2015 it became known that Salesforce.com offered SAP close cooperation, however the last did not agree to it. Failure was apprehended as the fear of the American competitor shown by the German company.

"We stretched them an olive branch — the CEO of Salesforce.com Marc Benioff says. — I told (to Bill McDermott, the head of SAP — a comment of TAdviser) that I would like to enter into closer relations with them. Yes, we are competitors, but we should be also partners. He is afraid of Salesforce.com".
Marc Benioff says that SAP offered close cooperation, but was refused

Marc Benioff says that SAP offered close cooperation, but was refused

According to Benioff, the proposal of Salesforce.com on partnership with SAP was made at the suggestion of clients who ask to provide higher level of technical compatibility of products of the companies. At this Salesforce.com already concluded with Oracle, Microsoft and VMware of the transaction in the field of sharing of technologies and data, noted chapter of Salesforce.com.

In the spring of 2015 in the western press there was a big wave of rumors about sale of Salesforce.com. Among potential applicants for this company Oracle, Microsoft and SAP were called. The last categorically rejected interest in Salesforce.com: according to Bill McDermott, the cost of Salesforce.com too high for acquisition of this company therefore hardly someone will want to conclude such bargain.

Makdermott also foretold that Salesforce.com will reduce the prices of the products that will negatively affect revenue of vendor. Partly this forecast is confirmed by Salesforce.com which in 2016 financial year (will last until the end of January of the 2017th) expects sales growth for 22% (to $6.55 billion) against 32 percent rise the previous year.

It should be noted that Benioff and Makdermott exchanged more than once comments in which exposed the competing company disparagingly. During the conference call devoted to the publication of financial statements in May, 2015 the CEO of Salesforce.com mentioned 14 times a name of SAP. By July 3, 2015 Makdermott's answer to the statement for fear of Salesforce.com did not follow.[14]

Salesforce pointed to errors of Oracle and SAP

On July 10, 2015 the cofounder of Salesforce.com Parker Harris told about the reasons of rapid growth of the company and the main errors of larger competitors.

In 2015 Salesforce.com expects revenue in the amount of more than $6 billion. If this forecast comes true, the American company will become producer of the corporate software most of which quicker reached this sales volume. Focus on certain products will help to achieve such result to vendor, Parker Harris said.

The cofounder of Salesforce.com Parker Harris says that the company grows thanks to focus on certain products

When main competitors on behalf of Oracle and SAP, work almost in all segments of the market of software of the corporate level, Salesforce.com was focused only on solutions in the field of customer relationship management.

"Many said that we need more products. Look at Oracle and SAP. They added to themselves ERP, a management system for product inventories and remunerations — Harris says. — We understood that we are the customer-oriented company and means of customer service. They will be very upset if we add a set of products and we will lose focus".

As notes the Business Insider edition, the approach selected by Salesforce.com concerns also new products of the company, including the analytical Wave platform which allows the enterprises and the organizations to use own tools of analytics. Wave is optimized under CRM data and not expected all analytical industry yet, the co-founder of Salesforce.com noted.

"We do not say that this analytics for all. We say that this analytics for understanding of your CRM, analytics for understanding of your customer relations. Here we are strong, and here our clients" — Harris added.

According to him, attempts to cover all industry which are practiced by many large players finally negatively affect their business as partners do not want to work with the vainglorious companies which try to press on them.[15]

Salesforce expands cloud business

On August 20, 2015 it became known of expansion of cloud business Salesforce.com. The corresponding statement was made by the CEO of the company Marc Benioff during the conference devoted to the publication of financial statements of vendor.

According to the top manager, Salesforce.com already stopped being just the specialist in the field of automation of sales.

"We are very different" — Marc Benioff said, having noted that the websites of user support Sony PlayStation and clients of Home Depot use the solution Salesforce Service Cloud.

As reported chapter of Salesforce.com, the company is going to release several industry vertical cloud solutions for health care, retail, etc. Emergence of these products in the market is expected in September, 2015.

Marc Benioff announced expansion of cloud business of the company

It should be noted that Salesforce.com before began to expand the business outside the main market – CRM systems. In particular, the company is engaged in marketing and for this purpose in 2013 ExactTarget company for $2.5 billion was purchased. Thanks to that transaction of Salesforce.com could offer clients of service in digital marketing who allow them to manage the campaigns by means of e-mail, social networks and mobile devices.

According to, on sale of the software having functions, specific to these or those clients, the software company can earn the Fortune edition more, than from public sales of products. However such solutions are expensive and labor-consuming in development. However, large vendors are able to afford to create software for the vertical industries that confirms activity of competitors of Salesforce.com – Microsoft and Oracle – in this area.

Against the background of expansion of cloud business Salesforce.com raised the forecast for annual revenues — from $ dollars 6.52 - 6.55 billion to $6.6-6.63 billion. Financial year at the company comes to the end at the end of January of the 2016th.[16]

2013: Software developer No. 10 in the world with sales of $3.8 billion

According to Gartner, in 2013 Salesforce.com with turnover in $3.8 billion rose by two positions in the rating of the largest software makers, having taken the tenth place and also showed the most large increase of income in top ten — 33%. Analysts are sure that in 2014 turnovers of the company will reach $5 billion.

2012: The plan expansion of business on the European markets

George Hu, the operating officer of Salesforce, at the conference of Wells Fargo which was taking place at the beginning of April, 2012 said about possible expansion of business of the company out of limits of the markets of the USA during the speech and Japan where its positions are traditionally strong. Salesforce looks towards the markets of the Eurozone to which it intends to propose solutions for business of different scale from SMB to large corporations. It is about the popular frontal systems and the tools gaining popularity with functions of social interaction.

It is known that Salesforce wants to replicate successful experience of an entry into the Japanese market on the example of the European countries. According to George Hou, his company did not pay due attention to perspective regions in due time and now reaps the fruits of this short-sighted policy. Its solutions got world popularity and by right are considered as some of the best in the industry, but are really successful in only two markets. Let they and some of the most important in the world.

To reach modern indicators in the market of Japan, Salesforce was required to pass a way of 10 years. But now the company is the most successful software developer in this country, – at least, Hou so considers. It is all about a sfokusirovannost of efforts and, of course, investments – he is sure. At a stage of expansion to the European region it is going to expand the sales channel, first of all, significantly.

About what countries there is a speech, Hou did not specify, but it is obvious, at the initial stage it will be the most perspective markets in terms of fast increase in profitability indicators. According to the top manager of Salesforce, such countries no more than 7-10 whether enters their number Russia unambiguously it is impossible to tell. On the one hand, the Russian market of CRM systems is extremely fragmented, and customers quite often prefer less expensive offers, with another, on volume it can easily argue with the developed countries of Europe.

In the Russian market there are projects implemented on CRM solutions of Salesforce and in the next two years arrangement in the local market will hardly change – Artem Parmukhin, the director of the department of management systems for client relationship "Sitronics Information Technologies" considers. To that there are several reasons. First, the cost of use of solutions SaaS in the horizon of 5-7 years is comparable to the on-premise systems, and the last often nevertheless have broader functionality. Secondly, the question of trust to storage of client data outside the country and "walls" of the company remains the most difficult surmountable obstacle.

Theoretically Salesforce has good perspectives to increase sales volumes in the Russian market due to small business which differs in the weak level of penetration of CRM technologies in comparison with an Enterprise segment. However and here serious restraining factors can become lack of high demand on CRM from the small companies because of the general immaturity of this segment of the market. The competition to local developers on behalf of 1C, Terrasoft and the free systems like SugarCRM it is impossible to dismiss too.

2010: 72.5 thousand clients and 2.1 million subscribers

In 2010 except the headquarters of Salesforce.com in the American city of San Francisco the company operates through regional offices - in Dublin, Singapore and Tokyo. Other significant representations are in Toronto, New York, London, Sydney and San Mateo. The company totals 72.5 thousand clients worldwide and about 2.1 million subscribers of the services.

2009: Start of own Chatter messenger

In December, 2009 the GroupSwim company based on which developments in 2010 own service of message exchange and joint work of Salesforce Chatter was started was purchased.

Also in December, 2009 Informavores based on which Visual Process Manager was started was absorbed.

2008: Integration with Facebook

In the 2008th Salesforce integrated the systems with Facebook, in the 2009th — with Twitter.

In August, 2008 the Instranet company which later became Salesforce Knowledge service was purchased.

2007

The most fast-growing supplier of CRM (+49.8%)

Among vendors of CRM systems in 2007 the largest rate of a gain of revenue showed SalesForce.com companies: its turnover from sale of CRM solutions increased by 49.8%. 15% of the world market of CRM were the share of SaaS system in 2007. Read more here.

Start of Force.com service

In the 2007th the company created Force.com service which opened an era of platforms in the form of service. This platform allowed the company to construct partner SaaS ecosystem and also to break a stereotype that cloud solutions are hardly customized.

To the 2010th the of the developers using Force.com reached 300 thousand, and the number of the applications created on the platform — 185 thousand.

In 2007 the Ideas portal (now — IdeasExchange) also appeared on which clients of the company can publish the ideas of new features of Salesforce and vote according to proposals of others.

2005: Platform of partner applications

In 2005 Salesforce.com opened the platform for partner applications of AppExchange on which by 2014 over 2200 names are submitted. Later similar platforms appeared at SAP, Oracle and others.

2004: The IPO on the stock exchange of New York

In June, 2004 the company underwent the IPO on the stock exchange of New York.

1999: The ex-manager of Oracle Marc Benioff bases Salesforce.com

Salesforce.com was founded in March, 1999 by the being top manager of Oracle Marc Benioff, Parker Harris, Dave Malenkhoff and Frank Domingez as the company specializing in SaaS products.

Notes


Stock price dynamics

Ticker company on the exchange: NYSE:CRM