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Tag: RBC Capital Markets

  • Analyst Believes Microsoft Could Buy Salesforce

    Analyst Believes Microsoft Could Buy Salesforce

    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.

  • Yet Another Analyst Believes Microsoft Could Unseat Amazon, Cites ‘Paranoia’ Surrounding AWS

    Yet Another Analyst Believes Microsoft Could Unseat Amazon, Cites ‘Paranoia’ Surrounding AWS

    Business Insider is reporting that RBC Capital Markets Managing Director Alex Zukin believes Microsoft could unseat AWS as the dominant cloud player.

    AWS currently holds a commanding lead in the market, with some 47.8% market share. In spite of that, Amazon’s status as a leading retailer is proving to be a handicap, especially when trying to win business from companies that compete with it.

    “There’s the perception that Amazon has access to all your data and owns all your data,” Zukin told Business Insider. “That perception does sometimes get in the way of signing large long term strategic engagement in some industries that Amazon is particularly competitive with.”

    Zukin cites the example of Walmart, one of Amazon’s biggest competitors, who is using Microsoft’s Azure primarily because it’s not AWS.

    In addition to the competitive factor, there’s also the barrier-to-entry many developers experience with AWS. AWS is one of the most comprehensive cloud platforms available, but it also has a reputation for being difficult to use. Often its tools are better suited to hard-core programmers than business IT departments. In contrast, Microsoft has deep roots in the consumer and business industries, with a heavy focus on making things as easy as possible for non-programmers. This gives it a major advantage over AWS.

    There have been multiple reports recently that Microsoft is gaining significant ground in the cloud market. There have also been previous reports that this is, at least in part, because companies trust Microsoft more than a company they routinely compete with. As a result, Microsoft’s momentum seems to be picking up speed at a rate that should be alarming to Amazon, as well as others. If Amazon wants to retain its spot as the dominant cloud player, it will need to address the issues threatening to unseat it.

  • Google May Buy Salesforce To Help Bolster Its Cloud Business

    Google May Buy Salesforce To Help Bolster Its Cloud Business

    According to Business Insider, RBC Capital Markets believes Google may purchase Salesforce and use it to better take on Amazon and Microsoft.

    Google is currently a distant third among U.S. cloud providers. As of 2019, Gartner estimates Amazon’s AWS has some 47.8% of the market, Microsoft Azure accounted for 15.5% and Google Cloud brought up the rear with a mere 4%.

    Even worse, a recent report shows that 97 percent of companies polled are using Azure to some degree, and far more companies are planning to deploy Microsoft’s cloud platform than are planning to use AWS or Google. While Amazon has room to lose market share, Google Cloud does not.

    According to Business Insider, a source said Google Cloud CEO Thomas Kurian has the goal of Google becoming “at least the No. 2 cloud.” For that to happen, however, the company will need to gain significant ground. RBC doesn’t see that happening without making a major move.

    “We don’t see a viable organic way to get there,” said the RBC note.

    If Google does purchase Salesforce, RBC estimates the deal could be worth as much as $250 billion. While expensive, it would catapult the company into the No. 2 spot.