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Salesforce’s Stiff Competition in the Marketing Cloud Space

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Adobe poses a threat to Salesforce

Earlier in this series, we discussed the performance of Salesforce’s (CRM) marketing cloud in fiscal 3Q17. We also discussed Adobe’s (ADBE) acquisition of TubeMogul in this space, which could give its digital segment a boost.

As the above presentation shows, TubeMogul was positioned as a leader in the Forrester Wave 2015 Video Advertising Demand-Side Platforms report. Ovum, a research company, named Adobe an overall market leader for digital marketing platforms in late 2015. Therefore, the integration of the two leaders, Adobe and TubeMogul, would not only strengthen the former’s Marketing Cloud services but also expand its reach.

Prior to acquiring TubeMogul, Adobe bought out Livefyre to bolster its presence in the marketing cloud space. Livefyre, an audience engagement company, offers a range of tools for companies and brands to engage with their audiences.

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To further expand its presence, Adobe announced a partnership with Microsoft (MSFT). Under this partnership, Adobe shifted its Marketing Cloud, CC (Creative Cloud), and Document Cloud services to Microsoft’s cloud computing platform, Azure. Microsoft, in return, will get to use Adobe’s Marketing Cloud for its Microsoft Dynamics 365 Enterprise. Microsoft’s Azure has played an integral role in the company recording triple-digit growth in the cloud space.

Adobe follows the partnership and acquisition route

Of late, some notable acquisitions have happened in the marketing cloud space. The Demandware acquisition has boosted Salesforce’s Marketing Cloud, and now, the company expects a $1 billion run rate. Similarly, Oracle announced the acquisition of AddThis and NetSuite to bolster its offerings in the marketing cloud space.

However, despite greater participation and competition from Salesforce, Oracle (ORCL), and IBM (IBM), Adobe continues to lead the marketing cloud space. To retain its dominance in this space, Adobe is not shying away from forging strategic partnerships or making opportune acquisitions. TubeMogul will not only provide Adobe with a larger reach in video advertising, but could also integrate with its content, marketing, and analytics services. This could ramp up competition in the marketing cloud space, stirring players such as Salesforce into action.

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