How Salesforce’s Subscription Segment Has Been Performing



Subscription segment’s double-digit growth continues

Previously in this series, we discussed Salesforce’s (CRM) initiatives to grow in the cloud space, as well as competition posed by Adobe’s (ADBE) and Microsoft’s (MSFT) collaboration. Salesforce generates the majority of its revenue from the subscription and support segment, which saw revenue of $2.1 billion in 4Q17. Let’s take a look at the offerings that contributed the most towards subscription and support’s 25% YoY (year-over-year) revenue growth.

Article continues below advertisement

Marketing Cloud grew the most

Sales Cloud, the top contributor in the segment, earned 38% of Salesforce’s subscription and support revenue in fiscal 4Q17. Sales Cloud enables companies to store data, monitor progress, and gain insights on and predict sales opportunities. The product grew by 14% to $804.9 million.

Service Cloud helps companies deliver customized customer service and support. It grew by 24% to $615.3 million. Salesforce Platform allows companies and developers to create apps. It grew by 33% to $391.7 million.

Salesforce’s Marketing Cloud grew 62% to $298.8 million in fiscal 4Q17. Among Salesforce’s cloud offerings, Marketing Cloud grew the most in fiscal 4Q17. Demandware contributed approximately $63 million in fiscal 4Q17. Although Adobe (ADBE) leads the marketing cloud space, competition has increased. Oracle (ORCL) and IBM (IBM) are also active in this space.


More From Market Realist