Microsoft and SAP are partnering to integrate Teams across SAP’s suite of solutions, with the goal of streamlining customers’ cloud transitions.
Microsoft Teams and Slack are the two dominant corporate messaging platforms on the market. Salesforce recently inked a deal to acquire Slack in a move that was seen largely as a way to fend off threats and remain competitive. It’s not surprising that Saleforce’s rivals would want to offer similar levels of integration. This is especially true for SAP and Microsoft, both among Salesforce’s biggest competitors.
The partnerships builds on a joint commitment by the two companies, and will see Teams integrated with SAP S/4HANA, SAP SuccessFactors and SAP Customer Experience.
“New ways of working, collaborating and interacting completely transform how we operate,” said Christian Klein, CEO of SAP SE and member of the Executive Board. “By integrating Microsoft Teams across our solution portfolio, we will bring collaboration to the next level, jointly determining the future of work and enabling the frictionless enterprise. Our trusted partnership with Microsoft is focused on continuously advancing customer success. That’s why we are also expanding interoperability with Azure.”
“The case for digital transformation has never been more urgent,” said Satya Nadella, CEO, Microsoft. “By bringing together the power of Azure and Teams with SAP’s solutions, we will help more organizations harness the power of the cloud so they can more quickly adapt and innovate going forward.”
The new integrations are expected to be available in mid-2021.
“There is definitely no intention to make Slack free,” says Slack CEO Stewart Butterfield. “What we’ve seen in the last little while is the biggest telco in North America is wall-to-wall on Slack. The operator of the largest integrated health care system in the United States is on Slack. The single largest government contractor in the United States is wall-to-wall on Slack.”
Slack Connect Key To Value Unlock Of Salesforce Deal
The simple version of the back story is this is a really unique combination. We believe we can accomplish in the next five years what might have taken us 20 years to do otherwise. That’s the heart of it and it’s a pretty big milestone for us. We’re excited. It wasn’t expected by the outside world but we have a lot of momentum now. We came out of this quarter and we announced our results and Salesforce announced their results. Then we announced the acquisition all at the same time.
A little bit of this got lost but we added 12,000 new paying customers in that quarter. It’s up 140 percent from a year ago. It matches the crazy surge that we saw during the early days of the pandemic. That momentum is coming from product improvements and it’s coming from Slack Connect which allows two organizations to communicate across organizational boundaries. That’s actually going to be key to the value unlock over the next few years. Salesforce is all about CRM. It’s all about customers and Slack Connect is 95 percent customer-vendor relationships.
Engagement Layer: Everyone Will See It Later
This (acquisition) is 100% offense. There are some really unique aspects of this particular combination. We weren’t looking to sell the company. I have a great relationship with Brett Taylor, President, and COO of Salesforce. We’ve known each other for a couple of decades at this point. There’s a way in which we see the world that i think very few people see it today but everyone will see it later. One way to say that is to look at the engagement layer. That’s kind of a weird term but it is the place where the conversations are happening, the places where the decisions are being made, as the perfect place to bring together workflows across organizational boundaries.
Salesforce has a really broad suite. But of course, we have 2,400 apps in the app directory for Slack. We have 700 000 custom integrations that were developed by customers. These are like unique little integrations, some of them very small, just sending notifications into Slack, and some of them are sophisticated workflows that run entire businesses. That’s something that we will see an increasing degree of sophistication in the messaging environment and an increasing degree of work getting done directly where the decisions are made.
No Intention To Make Slack Free
When Brett and I were talking we talked about the opportunity for something that’s one plus one equals seven. If you think back to the 90s and Cisco acquiring small hardware startups and then plugging it into their network of 20,000 salespeople and just selling a lot more of that thing. That’s not it. We will do that as well. We obviously have incredible distribution and incredible reach and incredible relationships across all industries and across all geographies. So we’ll sell more Slack.
Salesforce recently announced their plan to get to $50 billion in revenue and we’ll play an important part in that. We’ll also be an accelerant for the adoption of Salesforce’s core products. There is definitely no intention to make Slack free. What we’ve seen in the last little while is the biggest telco in North America is wall-to-wall on Slack. The operator of the largest integrated health care system in the United States is on Slack. The single largest government contractor in the United States is wall-to-wall on Slack.
We win in media and technology, kind of famously, but we also win in retail and apparel and industries that people don’t imagine seeing us. We have 142,000 customers right now. There’s going to be a lot of overlap with Salesforce but there’s also going to be 100,000 plus of those customers which are SMBs and kind of outside of Salesforce’s purview so far. We think there’s the opportunity to bring them into the fold and to connect them all together with Slack Connect.
Slack CEO Stewart Butterfield: No Intention To Make Slack Free
Salesforce announced its much-anticipated acquisition of Slack earlier today, sparking nothing short of a battle over the cloud.
Salesforce made headlines last week when news broke that it was looking to acquire Slack. Talks progressed rapidly, with the deal announced a few hours ago. In the statement announcing the deal, Stewart Butterfield, Slack’s CEO and Co-Founder, provided a clue about what’s at stake:
Salesforce started the cloud revolution, and two decades later, we are still tapping into all the possibilities it offers to transform the way we work. The opportunity we see together is massive.
Despite being responsible for starting the cloud revolution, Salesforce has come under increasing pressure from other companies, most notably Microsoft. The Redmond company has made no bones about its intention to unseat Salesforce as the dominant CRM company. Most recently, Microsoft partnered with C3.ai and Adobe to roll out an AI-based CRM.
Similarly, Slack has been under increased pressure from Microsoft Teams. Teams doubled Slacks installed user base in November 2019 when it reached 20 million daily users. Its user base has exploded since then, reaching 115 million in October. Much of Teams’ growth has been the result of Microsoft’s bundling it with Office, a practice that prompted Slack to file an antitrust complaint with the EU.
Butterfield’s comment about “the opportunity we see together is massive” is indicative of just how much both companies need this merger. Since its IPO, Slack has never turned a profit. To make matters worse, Slack has not experienced the same pandemic-fueled boon like Zoom and other cloud platforms. It’s experienced significant growth to be sure, but not to the same degree as competing companies.
The combination of the two companies will help both fight Microsoft.
“The core reason for this deal in our opinion is to keep pace with the cloud behemoth in Redmond,” Wedbush analyst Dan Ives said in a note to investors Tuesday, reports CNN. “Slack despite facing stiff competition from Microsoft has been a clearly successful solution set further penetrating enterprises and thus looks like the natural fit for Salesforce to beef up its collaboration and messaging footprint and keep pace with [Microsoft].”
It remains to be seen if the two companies will be more effective together, but it’s a good start. The combination of the two platforms helps both provide a more complete offering to its customers.
Salesforce announced that it is buying Slack for $27.7 billion in cash and stock. The company says that combining Slack with Salesforce Customer 360 will be transformative for customers and the industry. They say that the combination will create the operating system for the new way to work, uniquely enabling companies to grow and succeed in the all-digital world.
Under the terms of the agreement, Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share, representing an enterprise value of approximately $27.7 billion based on the closing price of Salesforce’s common stock on November 30, 2020.
The transaction is anticipated to close in the second quarter of Salesforce’s fiscal year 2022, subject to approval by the Slack stockholders, the receipt of required regulatory approvals and other customary closing conditions.
Slack CEO Stewart Butterfield told the Wall Street Journal that he is joining Salesforce and will continue to run Slack as a unit of Salesforce after the deal’s close.
“Stewart and his team have built one of the most beloved platforms in enterprise software history, with an incredible ecosystem around it,” said Marc Benioff, Chair and CEO, Salesforce. “This is a match made in heaven. Together, Salesforce and Slack will shape the future of enterprise software and transform the way everyone works in the all-digital, work-from-anywhere world. I’m thrilled to welcome Slack to the Salesforce Ohana once the transaction closes.”
“Salesforce started the cloud revolution, and two decades later, we are still tapping into all the possibilities it offers to transform the way we work. The opportunity we see together is massive,” said Stewart Butterfield, Slack CEO and Co-Founder. “As software plays a more and more critical role in the performance of every organization, we share a vision of reduced complexity, increased power and flexibility, and ultimately a greater degree of alignment and organizational agility. Personally, I believe this is the most strategic combination in the history of software, and I can’t wait to get going.”
Slack to Become the New Interface for Salesforce Customer 360
Salesforce:
Salesforce is the #1 CRM that enables companies to sell, service, market and conduct commerce, from anywhere. Slack brings people, data and tools together so teams can collaborate and get work done, from anywhere. Slack Connect extends the benefits of Slack to enable communication and collaboration between a company’s employees and all its external partners, from vendors to customers.
Slack will be deeply integrated into every Salesforce Cloud. As the new interface for Salesforce Customer 360, Slack will transform how people communicate, collaborate and take action on customer information across Salesforce as well as information from all of their other business apps and systems to be more productive, make smarter, faster decisions and create connected customer experiences.
Salesforce and Slack are expected to announce a sales agreement Tuesday, in what would be Salesforce’s biggest acquisition to date.
The two companies made headlines Wednesday with news that Salesforce was looking to purchase the iconic corporate messaging app. At the time, talks were thought to still be in the preliminary stages, with no indication a deal was in sight. Within hours, however, outlets starting reporting the talks were in the advanced stages.
Things have progressed quickly, as a new report from the Wall Street Journal says a deal could be announced as early as Tuesday after market close. CNBC’s David Faber reports the deal will be roughly half cash and half stock, although it may be slightly weighted toward the cash side.
Similarly, while initial reports valued Slack at $17 billion, it appears Salesforce will be paying a significant premium. Faber said the deal is not expected to reach $30 billion, but may come close.
Experts believe the acquisition will help Slack, as well as Salesforce, fend off Microsoft. Slack has been hurt by a number of factors, most significantly Microsoft’s bundling of Teams with Office. Microsoft’s tactics prompted Slack to file an antitrust claim with the EU, a claim Jim Cramer calls “strong.”
At the same time, Microsoft continues to go after Salesforce’s core CRM market. Its most recent inroad was a partnership with C3.ai and Adobe to create AI-driven CRM.
The combination of the two companies may ultimately help both compete with Microsoft more effectively.
Salesforce may be looking to make its largest acquisition to date, possibly snapping up Slack, the popular corporate message platform.
Slack helped define the corporate messaging market and is used by organizations of all sizes. Recently, the company has faced increasing competition from Microsoft Teams, which has eclipsed Slack’s user base.
Nonetheless, Slack is still wildly popular and continues to strike deals with major companies. In February, IBM announced it was deploying Slack to all 350,000 of its employees. Similarly, in June AWS announced it was deploying Slack to all of its employees. In return, Slack migrated its voice and video calling services to Amazon’s Chime platform.
The AWS deal also spurred talk that Amazon might be interested in acquiring Slack. Despite Microsoft Teams’ larger market share, Slack is seen as the safe choice for companies that compete with Microsoft and don’t want to rely on a rival for their corporate communication. Given that AWS and Microsoft are the first and second-largest cloud providers, Slack seemed like a natural choice for AWS.
It appears Salesforce may be interested in purchasing the message platform, however, according to a report by the Wall Street Journal. The talks appear to be preliminary, and therefore may ultimately come to nothing. Should the a deal be struck, however, it would be the largest in Salesforce history, since Slack is currently valued at $17 billion.
Salesforce and Slack already integrate with each other. Given that both companies are locked in heated competition with Microsoft, joining forces may make sense. Salesforce, in particular, has been under increased pressure lately, with some analysts believing Microsoft’s open approach to data gives it a significant advantage over Salesforce. Microsoft has also partnered with C3.ai and Adobe to target Salesforce’s core CRM business.
It remains to be seen if the talks will bear fruit, but it is also possible Saleforce’s interest could spark renewed interest from other parties, such as AWS. Larger companies content to partner with an independent Slack may not want to see it come under the control of a possible competitor. This, in turn, may motivate them to make a move of their own.
Microsoft, Adobe and C3.ai have joined forces to use artificial intelligence (AI) to reinvent customer relationship management (CRM).
The new product, C3 AI CRM, is powered by Microsoft Dynamics and fully integrates with Adobe Experience Cloud. The goal is to deliver “the first enterprise-class, AI-first customer relationship management solution is purpose-built for industries.”
Salesforce, in particular, should be worried by this development. Microsoft has been trying for years to dethrone Salesforce as the CRM king, with little success. While Dynamics 365 has certainly carved out a corner of the market, Salesforce is still the undisputed leader.
The combination of Dynamics’ foundation, C3.ai’s artificial intelligence and Adobe’s “AI-driven solutions for marketing, analytics, advertising, and commerce” may be just the winning combination Microsoft has been looking for.
“This year has made clear that businesses fortified by digital technology are more resilient and more capable of transforming when faced with sweeping changes like those we are experiencing,” said Satya Nadella, CEO, Microsoft. “Together with C3.ai and Adobe, we are bringing to market a new class of industry-specific AI solutions, powered by Dynamics 365, to help organizations digitize their operations and unlock real-time insights across their business.”
The companies made a point of highlighting how the digital transformation had changed the requirements for a CRM solution, with general-purpose software no longer meeting customers’ needs.
“Microsoft, Adobe, and C3.ai are reinventing a market that Siebel Systems invented more than 25 years ago,” said Thomas M. Siebel, CEO of C3.ai. “The dynamics of the market and the mandates of digital transformation have dramatically changed CRM market requirements. A general-purpose CRM system of record is no longer sufficient. Customers today demand industry-specific, fully AI-enabled solutions that provide AI-enabled revenue forecasting, product forecasting, customer churn, next-best product, next-best offer, and predisposition to buy.”
Microsoft’s open approach to data and integration have already been labeled a big advantage over Salesforce’s approach. Should this new partnership deliver on its promise, Salesforce may soon find itself scrambling to catch up.
Microsoft’s approach to customer data could help the company make major headway against Salesforce.
Salesforce is one of the leading customer relationship management (CRM) and enterprise application software companies in the US. According to Business Insider, Futurum Research analyst Dan Newman believes it could be at a big disadvantage versus Microsoft because of its focus on collecting data primarily from its own tools.
In contrast, Microsoft has moved towards openness in recent years, under the leadership of CEO Satya Nadella. In the past, Microsoft was fiercely territorial about its own products and services. Windows and Office were Microsoft’s two cash cows, and the company was focused on keeping customers locked into that ecosystem.
Under Nadella, however, Microsoft has embraced other platforms and operating systems. Their focus has shifted to providing the best products, apps and services on any platform, rather than fiercely protecting their own.
This approach is serving it well in the CRM market, where Microsoft Dynamics 365 competes with Salesforce. Unlike Salesforce, Microsoft’s products integrate with a wide range of tools and services, including those from competitors. Microsoft seems to be taking the approach of being the central hub where that data comes together.
“We have hundreds and hundreds and hundreds of out-of-the-box connectors that allow our customers to connect to the data they already have, wherever it is: Whether it’s sitting in a system 360 mainframe from the 1970s or it’s sitting in the latest-and-greatest SaaS business application,” said James Phillips, President of Microsoft’s Business Applications Group.
Microsoft’s efforts may force Salesforce to adapt in order to stay competitive.
“We have hundreds of new vaccines coming for COVID,” says Salesforce CEO Marc Benioff. “It will be one of the biggest logistical and technology challenges really in the history of the planet. Salesforce is building and delivering now our new Work.com for vaccines. we’re going to rapidly have to be able to determine the wheat from the chaff so that we can have the best vaccines possible. Technology is the key to doing that.”
Marc Benioff, CEO of Salesforce, discusses their new Work.com platform for vaccines which utilizes technology to successfully battle the COVID pandemic:
COVID Vaccine Is Biggest Technology Challenge In History
I hope you got your flu shot. Obviously, the flu shot is a vaccine also. We, of course, have COVID vaccines coming. We are in a situation right now where vaccinations are one of the most important things we can do for public health. We all know that. We have hundreds of new vaccines coming for COVID. It will be one of the biggest logistical and technology challenges really in the history of the planet.
Salesforce is building and delivering now our new Work.com for vaccines. We are extending our super successful Work.com product which has helped so many states, nation-states, and companies succeed during the pandemic. We’re going to make sure this vaccination program is a major success as well.
Technology Is The Key To Determining Best Vaccines
You can already look at amazing organizations here in the United States, states like Texas, cities like Chicago, and many others that we work with for contact tracing. They’re already starting to deploy our vaccination program. This means that they have the ability to manage all the information associated with the vaccine, who’s received the vaccine, and how many vaccinations they’ve had.
Some of these vaccines are going to require multiple boosters. The efficacy of the vaccine. The ability to have the person who’s received the vaccine to self-report. Every vaccine is not going to be the highest of quality. There are going to be an assortment and we’re going to rapidly have to be able to determine the wheat from the chaff so that we can have the best vaccines possible. Technology is the key to doing that.
Salesforce CEO Marc Benioff: COVID Vaccine Is Biggest Technology Challenge In History
“There would be no Salesforce without Larry Ellison,” said Salesforce CEO Marc Benioff. “I am absolutely indebted to him. I am very grateful to him. We’re very close friends. Larry has a huge vision for the world. He is an incredible executive. You should never sell Larry Ellison short. Everyone in the world knows that.”
There Would Be No Salesforce Without Larry Ellison
Larry Ellison is my mentor. He was my first investor at Salesforce. He was my first Board member. There would be no Salesforce without Larry Ellison. I am absolutely indebted to him. I am very grateful to him. We’re very close friends. Larry has a huge vision for the world. He is an incredible executive. You should never sell Larry Ellison short. Everyone in the world knows that. I don’t understand everything that’s going on. But wow, I’m so impressed by seeing them and everyone else make these aggressive moves.
I’m mostly worried about the companies that aren’t making aggressive moves. I’m calling CEOs who are friends of mine, who are in paralysis and who aren’t making moves. I’m saying look you’ve got to get into participation. You’ve got to get out of paralysis and into participation. You have to become relevant. Larry Ellison is the master of relevance. This is a move to make him relevant. This is so important. He’s giving you a master class in relevance.
Participation, Relevance, and Enablement
You have to enable your organization in new ways. We’re having weekly all-hands calls with tens of thousands of employees every single week. We haven’t done that since we were a startup because we have to enable people in new ways. These ideas, participation, relevance, and enablement. This is what we have to be focused on if we’re going to accelerate and go forward. Then we have to deliver the tactical plays and success stories to make it happen.
Some companies are making that happen and some companies are just sitting back and being too passive. You’ve got to look at both of these organizations.
Benioff: There Would Be No Salesforce Without Larry Ellison
“We are in a new digital world―in an ALL digital world,” says Salesforce CEO Marc Benioff. “The past is gone and it’s not coming back. We are not in the future. We are in the present moment. We are now in this new digital future and we need to rebuild our companies and organizations. This is a moment where if we all decide that we are all going to be successful and that the past is gone, we can create the future that we want.”
Marc Benioff, CEO of Salesforce, discusses how we are not living in the past or the future, we are living in the present. He says that the present is a new digital world in an all digital world:
This Is About Helping Our Customers Thrive
We are, of course, in an unpredictable time. There’s never been greater uncertainty in the entire world because you have a global pandemic, you have a global economic crisis, you have a racial justice crisis, you have a global leadership crisis, and you have a global environmental crisis, and they are all happening simultaneously. There’s a lot of uncertainty in the world. That’s why we all really have to focus and get really clear on what we want right now and how we are going to succeed through these times.
This is a time that you can no longer do what you were doing six months ago. You have to do something totally new and if you can do something totally new you can have tremendous success. Salesforce is now an example of that success. We delivered a 29 percent growth quarter. It was amazing. That followed a 30 percent growth quarter. We also had record margins and we had record large deals. It was amazing how many very large transactions we were able to close during that time.
Ultimately, this is about helping our customers succeed and helping them thrive during this time. It was a 63 percent increase in seven-figure deals for our quarter. It is really because the largest most important companies in this world are all making dramatic changes and we’re there to help them connect with their customers in a whole new way.
We Are In A New Digital World… In An All Digital World
We are in a new digital world―in an ALL digital world. The past is gone. It’s not coming back. We are not in the future. We are in the present moment. This is a be here now moment. Everyone needs to realize that the past is gone. We are now in this new digital future and we need to rebuild our companies and organizations. Ultimately, we need to rebuild ourselves to be successful in this new digital future.
I just had a Board meeting last week. I had a Board member and they were talking about how great Zoom is and how we participated in this great IPO and successful it is. The Board members said that Zoom is really the future. I said, look, Zoom is not the future. Zoom is the present. This is our present reality. We are in a new world. This is our reality. We need to all make changes and we need to make them now because this is not going to shift anytime soon. If we’re going to succeed through this we need to realize that the past is gone.
We Can Create The Future That We Want
We are never going back to how it was. All of our employees are at home. Even in countries where we are open like Japan employees don’t want to even come in to the office because they have reskilled themselves. We have a whole reskilling engine called Trailhead.com. They use our tools. We have a tremendous salesforce automation tool that lets our employees sell to our customers remotely digitally. Our Sales Cloud is why we have tremendous sales, productivity, and success. Our Service Cloud is why we are having tremendous ability to service from anywhere and market from anywhere. The reason we’re the fastest growing top five software company in the world is because we use our own products.
This is just a minute in time where I say, wow, I didn’t see this coming. Nobody did. But now that we’re here we have to rebuild ourselves. At the same time we have to also augment for our customers what we can do. We are doing now contact tracing for thousands of companies. We run pandemic response management for 35 states. We didn’t have a pandemic response capability six months ago. Now we have to have it.
We have to be there for our customers to help them be successful whether they are public sector organizations or whether they are the world’s most important companies. This is a moment where if we all decide that we are all going to be successful and that the past is gone, we can create the future that we want.
Salesforce CEO Marc Benioff: We Are In A New Digital World
Salesforce has announced its quarterly results, and it is one of the best in the company’s history.
Salesforce reported $5.15 billion in revenue for its fiscal second quarter, representing a 29% increase year-over-year. The largest chunk of that was its subscription and support revenue, which experienced a 29% growth, coming in at $4.84 billion.
The company’s adjusted earnings per share was $1.44, roughly doubling Wall Street’s expectations. Salesforce also increased its guidance for Q3 FY21 to $5.24 to $5.25 billion. Similarly, it raised its guidance for FY21 to $20.7 Billion to $20.8 Billion.
“It’s humbling to have had one of the best quarters in Salesforce’s history against the backdrop of multiple crises seriously affecting our communities around the world,” said Marc Benioff, Chair and CEO of Salesforce. “Salesforce was founded on our belief in stakeholder capitalism and our core values of trust, customer success, innovation and equality. Our success in the quarter brought all of this together with the power of our Customer 360 platform, the resilience of our business model, putting our customers first and doing our part to take care of all of our stakeholders. We know that together we have an opportunity to emerge from these times even stronger.”
Verizon has announced a slew of new features for BlueJeans, its videoconferencing Zoom competitor.
Verizon announced a deal to purchase BlueJeans in April, as the coronavirus pandemic was gaining momentum. Zoom had established itself as the go-to option for remote work and education, as well as for individuals to stay in touch with friends and family. Verizon saw an opportunity to snap up one of Zoom’s competitors in the hopes of combining BlueJeans with the company’s Verizon Business offerings.
Verizon has now announced some major new features for BlueJeans, as well as significant partner integrations. The platform now integrates with Salesforce, using hands-free lead tracking to capture attendee data. BlueJeans can also use Splash to help streamline event promotions, as well as follow-ups. Similarly, BlueJeans can use TicketSocket for event monetization.
Even more significant, BlueJeans has increased the size limit of virtual events, supporting up to 150 presenters and 50,000 attendees. The platform previously only supported 15,000 attendees. In addition, BlueJeans will support seamless integration with YouTube Live. While the platform already supported Facebook Live, adding YouTube Live will greatly increase the potential reach of a live event. Similarly, better support for Real-Time Messaging Protocol (RTMP) in BlueJeans Events will make it easier to stream to additional social media platforms.
“When COVID hit, the video industry was ready,” said David Maldow, Founder, Let’s Do Video. “Changes in culture and technology were already driving organizations to embrace live streaming prior to the pandemic, but now that traditionally in-person events are being forced to go virtual, we’re really seeing the benefits of platforms like BlueJeans Events. With these latest updates, BlueJeans continues to push the boundaries of what’s possible when it comes to hosting large-scale, interactive experiences online that exceed audience expectations while providing moderators peace of mind.”
It seems Verizon is moving full-speed-ahead with BlueJeans, and this will make hosting events post-pandemic a little easier.
Salesforce has become the latest company to extend its work from home (WFH) policy, allowing employees to do so through the rest of the year.
Virtually every major tech company has allowed, or even mandated, its employees to WFH during the coronavirus pandemic. In some cases, the result has been enlightening for many companies, showing how productive employees can be working from home. As a result, some companies have decided to allow employees to WFH forever, with Twitter being the most high-profile example.
While not allowing employees to work from home forever, Salesforce has decided to allow employees to WFH for the rest of the year.
“For us, the timing of when we bring employees back into our offices will be unique to each office—we’ll make those decisions on a city-by-city basis, in a way that’s consistent with local government guidelines and in line with the advice of our medical experts,” writes Amy Weaver, President & Chief Legal Officer.
“Regardless of whether their local office has reopened, Salesforce employees will have the option of continuing to work from home until the end of the year.”
While stopping short of Twitter, Salesforce’s decision is likely welcome news to its employees.
Mobile has become the focus of marketers worldwide because it goes with all of us, wherever we are and whatever we are doing. It seamlessly and ubiquitously is with us as we move from work to home and in between.
At Salesforce Dreamforce, Stephanie Buscemi, CMO of Salesforce, and Susan Prescott, Vice President Product Marketing at Apple discussed how mobile is changing the world of marketing. In particular, how mobility is setting new standards for customer expectations and how the is impacting the customer experience.
Apples VP of Product Marketing, Susan Prescott, explains:
An opportunity from a marketing point of view with mobility and with the technologies, the information you have about customers in the cloud and the devices that we have in the hands of customers, is the ability to personalize it. Rather than a marketing world where it’s just about driving awareness and trying to drive a generic action you have the opportunity that will help you deliver an even better more personal experience understanding things about that user.
From a marketing point of view, the power of combining the Salesforce Cloud and all of the things that are all of the insights and information that are there together with the intuitive familiar experience of the ubiquitous device that brings information to your fingertips all the time, it’s so powerful. This idea of having information when you need it, where you need it, on the device you have with you, is powerful.
As a consumer, obviously, I have that when I walk in a store I can have information right on my phone about items in the store, some of which have smart tagging so I can see the availability of the item and colors it comes in. Once the consumers have that kind of information we have to be smart as marketers to help them take the next step and not just feed them with generic awareness tools.
We as marketers have the opportunity to leverage all of that into more personalized experiences that benefit the user and also can benefit businesses. The idea of mobility isn’t just that it’s fun and easy, it’s that it’s creating value, value for the consumer, value for the business, and value for the customer.
“We’re making email marketing even smarter with a set of new AI capabilities getting released into Salesforce Marketing Cloud,” says Salesforce VP Armita Peymandoust. “One of them is Einstein Engagement Frequency. The other one is Einstein Send Time Optimization. We also have Einstein Content Tagging out and available today to our customers. Email is definitely not dead. Even the Millennials say that.”
AI-Powered Email Capabilities Released Into Salesforce Marketing Cloud
As we know email is still a really important channel. Over 64 percent of customers are still saying that they prefer email channels to all the others. What we’re doing is we’re making email marketing even smarter with a set of new AI capabilities getting released into Salesforce Marketing Cloud. One of them is Einstein Engagement Frequency. The other one is Einstein Send Time Optimization. We also have Einstein Content Tagging out and available today to our customers. Email is definitely not dead. Even the Millennials say that.
Einstein Engagement Frequency
With Einstein Engagement Frequency we’re trying to tell the marketer what’s the sweet range that they should keep on engaging with their customers. As marketers, we want to keep on engaging with our customers but we just don’t want to get to a point that we’re potentially annoying them. So we are telling them that this is the range that you should stay in.
Einstein Send Time Optimization
Now that the marketer knows what the frequency of engagement should be, with Einstein Send Time Optimization we’re also telling them what is the right time to send those messages. It’s really easy with a drag and drop of an activity into Journey Builder we make every message go out at the right time for the customers.
Einstein Content Tagging
Then with Einstein Content Tagging, we’re basically bringing image recognition the same set of AI capabilities that you’re familiar with for your customer based or consumer based products. This is where you upload photos and then they automatically get tagged. We are bringing that same technology to the hand of the marketer. Every image that’s getting uploaded into Content Builder gets automatically tagged so they can find it later and use it when they’re building their messages.
Transactional Messaging
We’re also releasing Transactional API’s for Emails and SMS. There are different types of emails out there. There’s the commercial one and there’s the transactional one. It allows the marketer to bring both of those two in an inter-marketing cloud and take advantage of Marketing Cloud to send those emails to have the same voice, the same brand voice, and also be able to see how those are performing all in one place.
Indiana Pacers Improved Customer Engagements By 20 Percent
These features are all relatively new. So we have pilot customers that have been taking advantage of them. We have one retailer that talked about Einstein Engagement Frequency. They had a hunch that they were over messaging customers but they couldn’t really put their finger on it. With Einstein Engagement Frequency we could show them visually exactly where they’re over engaging with their customers and let them take action on it. The platform automatically created lists so that they would not send messages to the ones that are getting too many email messages.
We’ve had a set of AI features in Marketing Cloud, specifically Einstein Engagement Scores, was one that the NBA’s Indiana Pacers is taking advantage of, to increase the engagement rate that they’re having with their fans. They got a 20 percent increase in engagements with their fans using that.
Customer Engagement Getting Even More Granular
We have a jam-packed roadmap for the next of the rest of the year as well. One of the things that I’m really excited about is Content Selection that’s coming out. Content Selection lets each of those messages that we’re creating be dynamically optimized for every customer that’s receiving them. Think of your email as a template that has different aspects or different selections in it that gets automatically replaced with what your customer cares about most and also what they have engaged with most and historically. It’s very engaging for every one of your customers.
The other one that I’m interested in (that is coming later) is bringing natural language processing to understanding your subject lines. What types of subject lines are resonating? Why is it that they’re resonating with your customers? It will give you an insight on them first and then also give you recommendations on how to improve your subject lines.
https://youtu.be/oaH_OrquEcE
New AI-Powered Email Capabilities Released Into Salesforce Marketing Cloud
AI startup Celonis has announced that President of Salesforce International, Miguel Milano, is joining the company as co-owner and Chief Revenue Officer.
Milano “led Salesforce’s international businesses across Asia-Pacific, Europe, the Middle East, Africa and Latin America.” His departure comes during a difficult week for Salesforce. Co-CEO Keith Block abruptly resigned from his role. The move caught the industry off guard, leading CEO Marc Benioff to take measures to reassure investors that it was business-as-usual for the company.
Now Salesforce is losing another top executive, one who has an outstanding reputation in the industry. Milano joins a company that touts itself as “the market leader in AI-enhanced Process Mining and Process Excellence software,” with Siemens, 3M, Airbus and Vodafone among its list of clients.
“Miguel is an outstanding leader with a phenomenal track record of building winning teams that deliver value for customers,” said Alexander Rinke, Co-Founder and Co-CEO. “We are honored that he chose Celonis as his next endeavor and that he is investing in the company as an owner. He shares our values and ambition to delight our customers and make a positive impact on our stakeholders. We are thrilled to have him on board.”
Milano struck an optimistic tone about his move to Celonis, saying: “I look forward to driving exponential growth at Celonis, focused on supporting customers become more efficient and sustainable in its operations and supply chains, and more customer-centric in its front-end processes. Process Mining is the foundation for a new, frictionless way of working which delivers significant business value to organizations in all industries. Salesforce is a once-in-a-generation company and I am convinced Celonis is well on its way to becoming one too. It’s incredibly exciting to join a hyper-growth company that is so innovative and groundbreaking and at the same time remains humble, customer-oriented and focused on making the world more sustainable.”
In a move that has surprised many, Salesforce co-CEO Keith Block has resigned.
Many insiders viewed Block as a potential successor to company co-founder Marc Benioff, who will continue as Chair and CEO. Despite resigning, Block will remain with the company in the role of Advisor to the CEO
“It’s been my greatest honor to lead the team with Marc that has more than quadrupled Salesforce from $4 billion of revenue when I joined in 2013 to over $17 billion last year,” said Block. “We are now a global enterprise company, focused on industries, and have an ecosystem that is the envy of the industry, and I’m so grateful to our employees, customers, and partners. After a fantastic run I am ready for my next chapter and will stay close to the company as an advisor. Being side-by-side with Marc has been amazing and I’m forever grateful for our friendship and proud of the trajectory the company is on.”
According to The Street, Benioff used the company’s fourth-quarter report to reassure investors it was business-as-usual.
“When you look at our total management team that Keith and I have built …I think it is the finest management team in the software industry and maybe any industry,” said Benioff.
Senator Kirsten Gillibrand is introducing new legislation to create a Data Protection Agency.
Senator Gillibrand makes the case that people have untold amounts of data about them scattered across the internet. Even worse, much of that data was collected without consent or, at the very least, without users knowingly agreeing to it being collected. In the digital age, that data represents a gold mine for countless companies who profit from it.
“I believe that this needs to be fixed, and that you deserve to be in control of your own data,” writes Gillibrand. “You have the right to know if companies are using your information for profit. You need a way to protect yourself, and you deserve a place that will look out for you.”
Specifically, the legislation Gillibrand is introducing, The Data Protection Act, would “establish an independent federal agency, the Data Protection Agency, that would serve as a ‘referee’ to define, arbitrate, and enforce rules to defend the protection of our personal data.”
The agency would focus on returning control of their data to Americans, support innovation while ensuring fair competition and help advise Congress of digital threats as they emerge, making sure the government is educated and prepared to meet those threats.
Gillibrand’s announcement comes amid a growing focus on privacy. Salesforce co-CEO Keith Block recently said the U.S. needed a national privacy law; the California Consumer Privacy Act (CCPA) became law January 1; and Clearview AI has gained infamy as the company “that can end privacy.”
It remains to be seen if Gillibrand will have the necessary support to pass The Data Protection Act, but it definitely will be welcomed in many circles as a step in the right direction.
According to Business Insider (BI), Piper Sandler analyst Brent Bracelin is predicting Microsoft could buy Salesforce if it became available.
Earlier reports by RBC Capital Markets predicted that Google may buy Salesforce in an effort to leapfrog Microsoft in the cloud market. Google is a distant third among U.S. cloud providers, and RBC did not see an organic way for the company to meet CEO Thomas Kurian’s goal of becoming the No. 2 provider within five years.
Bracelin, however, believes Microsoft would be the buyer, not Google. Specifically, the purchase could help Microsoft gain market share in the front-office application space, “the market term for software that helps salespeople and service reps keep track of their customers, which is an area where Salesforce specializes,” according to BI.
At this time, there is no evidence Salesforce is interested in selling. Even if it were, RBC believes a Salesforce acquisition could be valued as high as $250 billion, almost 10 times what Microsoft paid for LinkedIn, its largest acquisition to date.
One thing is certain: If Salesforce ever does go up for sale, there could be a major bidding war for the company.
“Every company is going through a massive digital customer transformation,” says SalesforceCEO Marc Benioff. “When you see this transformation happening it’s just incredible to watch. I mean this is as big as Y2K was for the tech industry. Every company is going through it. Every one of these major transformations is exactly that, it begins and ends with the customer.”
Marc Benioff, CEO of Salesforce, discusses their blowout earnings quarter and how the massive digital customer transformation is driving their growth in an interview with Jim Cramer on CNBC:
Massive Digital Customer Transformation
Every customer is going through a massive digital customer transformation. When you see this transformation happening it’s just incredible to watch. I mean this is as big as Y2K was for the tech industry. Every company is going through it. Every one of these major transformations is exactly that, it begins and ends with the customer.
The federal government was one of the most exciting things that happened in the quarter. It wasn’t just the USDA. It was also the Department of Education and the Department of Interior. It was many departments actually. They’re going through a huge digital transformation in the U.S. federal government and Salesforce has been able to offer many of those agencies is the rapid successful digital transformation that they need. We even had a 10,000 person event in Washington, D.C. during the quarter. That continues to be a fantastic growth area for us.
We’re number one in CRM which is the fastest growing part of enterprise software. Every company in every industry and every government is recreating themselves with their customer. This is what’s driving our growth. It’s pure and simple.
Mark Benioff added these comments during the earnings call:
Every Digital Transformation Begins and Ends With the Customer
Just last month, IDC Worldwide Software Tracker ranked Salesforce the number one CRM for the sixth year in a row. And I’ll tell you that is more important than ever, especially so many of our customers are going through these tremendous digital transformations. We all know every digital transformation begins and ends with the customer. And when I’m with these CEOs all over the world, this is really front and center in their mind. It’s probably as exciting to them and it’s important to them as it was to CIOs, who are buying for Y2K, which is almost 20 years ago. I think the digital transformation remains just a huge growth opportunity for our entire industry.
Still In the Early Days of the Digital Transformation
Well, there are many, many companies in the very early days. In fact, if you talk to one of our largest consulting partners, they’ll tell you less than 20% of their strategic customers have been engaged in the digital transformation, but there’s a lot of room for them in the marketplace.
So, we have an opportunity here again around this digital transformation and one of the beauties of a product like Trailhead and My Trailhead is helping these companies through their transformation and scale them up with modern technology because the modern worker has to have modern skills. And that’s what Trailhead and My Trailhead really provide the customers. So we really are coming out with an amazing innovation at the right time to satisfy the needs of these customers
Every Digital Transformation Begins and Ends With the Customer, Says Salesforce CEO Marc Benioff
