New data analytics software
On October 13, 2014, Salesforce.com (CRM) introduced Wave, its newest cloud offering, at the Dreamforce conference. The software system is based on technology that Salesforce.com got its hands on when it acquired the data analytics startup EdgeSpring Inc. in June 2013.
The cloud-based information analytics system enables companies to link data from different business departments—like sales, operations, or management—to the Salesforce.com system. Wave also lets companies analyze data visually on mobile devices and computers via the Internet.
Salesforce.com expects to integrate Wave with the technology gained through the purchase of RelateIQ Inc. To learn more about the RelateIQ acquisition, please read Salesforce acquired RelateIQ to boost its presence in “big data.”
Wave targets data analytics market
Wave is helping Salesforce.com concentrate on data analytics. According to IDC, the data analytics market is expected to grow at an average of 9.4% every year until 2018. With the Wave cloud platform, companies can spot links between business units. For instance, companies can study the relationship between the number of successful sales calls with a customer and the failure rates gathered by the sensors that are on the equipment that was sold to that client.
Salesforce.com’s perceived strategy is to shift its focus from the CRM (or customer relationship management) market, which generated about $20.5 billion in revenue last year. Data analytics revenue totaled $37.7 billion in 2013, according to Gartner.
Significant competition in the market
Products from leading vendors dominate the data analytics market. SAP AG (SAP) controls this space with a 21% market share. Oracle (ORCL) holds about a 14% market share. Plenty of startups like Platfora Inc. and Interana Inc. offer products that cater to this market.
As shown by the presentation above, Salesforce.com has joined forces with the following companies to provide data linking and management services:
- Deloitte LLP
- Accenture plc (ACN)
- Cognizant Technology Solutions (CTSH)
- PricewaterhouseCoopers LLP
- Jitterbit Inc.
- MuleSoft Inc.
Salesforce.com has also signed up independent software vendors (or ISVs) like FinancialForce.com Inc. and Predixion Software Inc. to add data sources that can be tapped by customers.