Please welcome Google to the Ohana”
These were the words that marked the start of the partnership between Salesforce and Google, announced by Benioff at the Dreamforce main Keynote last week.
This newly-formed relationship between the two is strategic in a number of technology and market ways, particularly to strengthen themselves against Microsoft and other SaaS behemoths.
Many have voiced that this could signal a future acquisition of Salesforce by Google. This would not be the first time such an acquisition has been speculated, reaching the press earlier this year
, and previously back in May 2015
Regardless of the array of reasons, Salesforce and Google both agree that the top priority in this partnership is to bring success to their mutual customers, as Benioff stated:
“Our partnership with Google represents the best of both worlds for our customers. There has never been an easier way for companies to run their entire business in the cloud – from productivity apps, email and analytics to sales, service and marketing apps.”
What Salesforce Gains
Salesforce can now use Google Cloud
infrastructure to host their core products in unchartered territory, hoping to accelerate Salesforce’s international expansion. It follows the same logic as the Amazon Web Services (AWS) partnership mid-2016, which rooted them in international markets, such as ANZ (Australia/New Zealand). At the same time, Salesforce can now offer their customers a choice of which cloud services vendor to use: Google Cloud or AWS, a deal-breaker for some prospects. Google will use Salesforce as preferred CRM provider – a great advertisement for Salesforce.
What Google Gains
Google is currently third in the cloud services ranking, and have their sights set on overtaking Microsoft and Amazon, the infamous leaders in the cloud services space. With Salesforce advocating Google Cloud, it’s likely that Google can increase market share by capturing Salesforce’s supreme quality customer base.
Salesforce and Google are a good match for a partnership, both customer-centric organisations that treat the success of their mutual customers as a top priority. This strategic partnership clearly has other motives attached to it, such as customer loyalty, cross-sell and market share domination, in order to ultimately strengthen their position in their respective markets.