Not that this should be a surprise to anyone, but November has proved a strong month for Salesforce, with their latest release showing another strong quarter with revenues reaching a $13 billion run-rate growing at 26% y/y.
However, despite this, it has also proved an interesting month for their biggest competitors.
Indeed, Zendesk’s recent announcement that they are to release a new sales tool for salespeople called Sunshine, that will make it possible to develop custom application on their platform and will be free for their current customers, will surely be a bitter pill for Salesforce to swallow. Even more so considering the fact that Salesforce failed to buy Zendesk back in 2011.
When you combine that move by Zendesk with one by SAP – who have acquired Qualtrics for a cool $8billion, that will better connect customer data with back-office data – it all looks a little dangerous for the world of Salesforce. SAP are making a strategic move of directly competing with Salesforce, aiming to target an area they lack in – HR tech products such as employee engagement and survey software.
As the year comes to a close, and as the Salesforce ecosystem continues to grow and expand, these recent moves by competitors into their space – although they are still in their early days – will surely have Salesforce racking their brain for how they can take another step ahead. It also demonstrates how, despite the prolific nature of Salesforce, they aren’t completely untouchable. On that note, it will certainly be interesting to see how Salesforce react and what company they’ll next acquire to strengthen their offering.