Salesforce’s Langley strategy
Last week, Salesforce (CRM) announced that Monica Langley is its new Executive Vice President, Global Strategic Affairs. In collaboration with the Salesforce executive team, Langley will likely be instrumental in developing growth strategies.
Salesforce Vice Chairman, President, and Chief Operating Officer Keith Block stated: “Monica is a consummate strategic thinker with decades of experience reporting on Fortune 500 companies.”
Block added that “[Langley] brings unique insight into management and corporate strategy that will help guide us as we reach $10 billion in annual revenue and work towards our next big milestone, $20 billion.”
During Langley’s 20-year association with the Wall Street Journal, Monica Langley extensively covered Donald Trump. According to Politico, “Langley had deep access to Trump and his aides and often broke news about the campaign.”
Langley wrote profiles on other business leaders and was among the highest-paid reporters with the Wall Street Journal, and so Salesforce saw her as a candidate worthy of the Executive Vice President, Global Strategic Affairs position.
According to Benzinga, speculations are widespread that Salesforce might be planning to hatch a deal prominent enough that requires approval from federal regulators. Langley’s association with Trump might help Salesforce move over regulatory hurdles.
Salesforce’s diversification plans
Although Salesforce derives the bulk of its revenue from the Americas, it’s interested in diversifying, with a new focus on Asia-Pacific (FAX) and Europe (EFA). The above chart by MarketsandMarkets shows growth in the cloud billing market. It’s expected to grow at a CAGR (compound annual growth rate) of 23.9% to become a $16.6 billion market by 2021, as compared to $5.7 billion in 2016.
In 2016, Asia-Pacific was expected to grow at the highest rate, while North America was expected to hold the largest market share. Among cloud billing services, SaaS (software-as-a-service) is gaining popularity due to its potential to offer customized and innovative services. Thus, Salesforce’s diversification plans, its growth in Asia-Pacific, and its dominance in the CRM (customer relationship management) space will all likely benefit the company in future.