Interview Synopsis – What's next for cloud platform & solutions leader?

  • Multi Asset
  • TMT
  • North America, widely regarded as the pioneer of business software-as-a-service, is fundamentally a customer relationship management (CRM) company and has expanded into an array of complementary areas since its launch in 1999. Third Bridge Forum spoke to a former director at the US-headquartered company to understand how it has evolved and the main trends that are impacting it today. 

Salesforce: growth outlook and coronavirus impact

“Digital transformation is a huge, huge trend for the company,” the expert said. Many businesses are increasingly adopting cloud-based services for a host of reasons including to enhance their overall operational efficiency, as well as for automation and analytical tools. Meanwhile, Salesforce is encouraging change in industries such as manufacturing and retail, which are lagging when it comes to adopting technology software and services.  

The expert also talked about Salesforce’s plan to integrate its various products and solutions within its Customer 360 platform, while also considering market share across Sales Cloud, Service Cloud, Marketing Cloud and Commerce Cloud. MuleSoft, focused on integration, Tableau, focused on analytics, and Quip, a productivity tool, were also assessed. 

“Productivity itself is a huge, huge TAM [total addressable market] that Salesforce could tap into, but I don’t think Quip is quite there,” the specialist said, adding that this could be an interesting area for M&A. There is also a lot of “white space” in vertical solutions. 

Salesforce is growing at over 20% on a YoY basis. However, the company “needs to deliver on that revenue growth” and seek TAM areas outside of CRM. The expert was asked whether there are any areas or solutions that Salesforce should be investing in or focusing on for M&A-related opportunities. In terms of productivity, a Zoom or Slack-like “company could make sense”, he said. 

The sector analyst noted that Salesforce is “pretty aggressive” when it comes to OPEX and CAPEX, and asked what the company is likely to prioritise in H2 2020 and 2021. A final area of focus was whether there has been an increase in client churn because of coronavirus. Attrition is likely to increase as marketing budgets are squeezed, the specialist said, particularly among SMBs.

To access all the human insights in Third Bridge Forum’s – What’s next for cloud platform & solutions leader? Interview, click here to view the full transcript. 

The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

For any enquiries, please contact