A Look at Salesforce Sales Cloud’s Growth in Fiscal 1Q18



Sales Cloud contributes maximum toward overall revenues

Earlier in this series, we discussed the factors that could provide some stimulus to Salesforce stock as well as its newly launched VC fund, which is focused on AI.

Let’s look into Salesforce’s (CRM) Sales Cloud offering, which is the largest contributor to the company’s subscription revenues. With revenues of ~$3.0 billion, CRM’s Sales Cloud contributed ~40% of Salesforce’s total revenues in 2017. Salesforce Sales Cloud could report double-digit growth in fiscal 1Q18.

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The company’s first $3 billion cloud

In April 2017, Salesforce launched its latest version of Sales Cloud—Einstein High-Velocity Sales Cloud—to make AI (artificial intelligence) more accessible.

Salesforce has also taken a strategic step to improve its Sales Cloud and other cloud offerings. It announced the opening of the second data center in Japan (EWJ) in April 2017, which would expand and enhance its Intelligent Customer Success Platform. Its platform comprises Sales Cloud, Service Cloud, App Cloud, Community Cloud, and Analytics Cloud.

Salesforce developed its Sales Cloud offering to enable companies to access stock data, observe leads and progress, predict opportunities, and develop understanding through relationship intelligence. In fiscal 2017, Sales Cloud grew 13% to become the first $3 billion cloud.

Later in the series, we’ll discuss how Microsoft (MSFT) is posing a threat to Salesforce’s Sales Cloud.


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