Strategies For Negotiating With Salesforce.com In The Wake Of Its Growing Product Set And New Editions

Despite an increasingly crowded market of cloud applications, salesforce.com is still very much the “darling” of the SaaS world. Some evidence of the provider’s continued fast-paced growth?

1)      Strong stock market performance. On June 12, 2013, when salesforce.com announced the completion of its acquisition of ExactTarget, salesforce.com stock (CRM) was trading at $37.58. On February 19, 2014, it closed at just over $63, a gain of 67.7% over that period (for reference the NASDAQ Composite did roughly 25% over the same period).

2)      External accolades for its ability to innovate. In August, salesforce.com was names by Forbes as the world’s most innovative company for the third year running.

3)      Steady flow of new products and editions. In November, salesforce.com announced its new Salesforce1 Service Cloud – a platform to be used for cloud-based application development. This product represents a significant improvement in the mobile salesforce.com experience which will ideally aid them in meeting their aggressive financial predictions. Not long before that, salesforce.com had announced Social.com, in April 2013.

4)      Revenue growth. Salesforce.com’s recent fiscal results (Q3 2013) conservatively project revenue growth of more than $1 billion for both this year and next ($4.05 billion for FY 2014 and $5.15 billion for FY 2015, compared to $3.05 billion in FY 2103).

So, it is no surprise then (in light of salesforce.com’s massive scale and continued expansion) that we continue to receive a heavy volume of Inquiries into Forrester about how to negotiate with salesforce.com.

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