TBRT ECH N O LO G Y B U SIN ESS RESEARCH , IN C.
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TBR EVENT PERSPECTIVE
Salesforce.com and its ecosystem
evolve to address industry demands
Salesforce1 World Tour
Boston, April 2, 2014
Jillian Mirandi, Senior Analyst (email@example.com)
Kelsey Mason, Research Analyst
Salesforce.com takes a three-pronged approach to industry-specific applications
The fundamental difference between the Salesforce1 World Tour in Boston and Salesforce.com’s Dreamforce
event last November was that speakers at the Salesforce1 World Tour placed increased importance on industries.
Over the past 15 years, Salesforce.com has experienced approximately 30% year-to-year growth, generating $4
billion in CY13, with a largely horizontal portfolio. At this scale, Salesforce.com must evolve its strategy to
penetrate the next wave of customers and will tailor its portfolio and message to better address specific industries.
The company’s industry strategy is three-pronged: Build industry-focused business groups to develop, market and
sell its suite of applications; encourage Platform ISV partners to build, market and sell industry applications; and
acquire vendors with industry-specific expertise to tailor Salesforcce.com’s solutions to verticals.
Salesforce.com will successfully address industry demand through its new business groups and partners, but will
face challenges as vendors from across the IT landscape make similar investments. Salesforce.com did not take full
advantage of its portfolio and ISV partner ecosystem head start against competitors, and we believe the company
will see more competition than it is used to in the industry race. However, with such a powerful and agile sales and
marketing engine, Salesforce.com has the opportunity to get out in front of potential customers very quickly.
New industry-focused business groups and experienced executives will drive the
next wave of CRM growth
Salesforce.com’s portfolio will maintain a horizontal focus, while the company tackles vertical growth by tailoring
its messaging and focusing its sales teams. By increasing industry investment, Salesforce.com has the ability to
penetrate highly specialized businesses it otherwise may have missed. Tailoring sales and marketing to specific
industries through use cases and customer examples to prove the company understands unique vertical demands
is a key element Salesforce.com is working to build through its new business groups. The company may never have