Why Salesforce Is Intent on Enhancing Its Offerings
Sales Cloud’s standing in the market
Earlier in this series, we discussed Salesforce’s (CRM) Sales Cloud growth as well as its contribution to the company’s overall revenues. Salesforce is increasingly taking initiatives to enhance synergies among its offerings—Sales Cloud, Service Cloud, Marketing Cloud, App Cloud, Commerce Cloud, and Wave Analytics.
Salesforce’s addition of Salesforce Einstein’s features to its cloud offerings is one such step. This move is expected to boost its Sales Cloud and give Salesforce an edge over its peers in the CRM1 space.
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Alex Zukin, a senior research analyst with Piper Jaffray, believes that Service Cloud “continues to lead the pack,” as the company is pursuing to enhance its reach with Sales Cloud customers.
In late 2016, Salesforce was named a Leader for SFA (sales force automation) in Gartner’s Magic Quadrant for the tenth straight year. Salesforce’s vision and its execution of its Sales Cloud Lightning offering enabled the company to retain this position.
Salesforce faces threats in rapidly growing CRM space
Salesforce has to safeguard its top position in CRM space, as it has already lost its leadership position in the SaaS space to Microsoft. Later in this series, we’ll discuss how Microsoft’s (MSFT) largest acquisition to date—LinkedIn—could be instrumental in dethroning Salesforce in the CRM space.
From being a $23.2 billion market in 2014, Gartner expects CRM to become a $36.5 billion market this year. Salesforce leads the CRM space with a market share of 19.7%, followed by SAP (SAP), which has a 10.2% market share. Oracle (ORCL), Microsoft, and Adobe (ADBE) rounded out the top five players.
Among them, Adobe’s revenues rose 26.9%, while Salesforce and Microsoft reported revenue rises of 21.1% and 20%, respectively.
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