Subba’s Serendipitous moments

May 29, 2007

Google and Salesforce.com alliance?

Filed under: Business,Innovation — Subbaraman Iyer @ 4:39 pm

There have been rumours of Salesforce.com being acquired by Google, which has been often proved to be untrue. The latest in the Valley is of a broad alliance between Google and Salesforce.com. While both are innovative companies who have blazed a new trail in their respective areas, I really don’t see what the alliance can bring to the table.

Google has been the leader for online search and advertising and have made their own APIs for theird party developers to build web based tools and applications. Their internet applications like email, messaging, online version of desktop applications like word processing and spreadsheets have seen adoption but are unlikely to pose any threat to Microsoft.

Salesforce.com specialize in CRM applications and recently moved into content management area. It has developed its own APIs on the APEX platform and count over 500 third party developers building diverse applications and these are offered on a subscription basis to SME and large enterprises alike.

While both organizations are leaders in their respective segments, they have many things in common. Both use the Internet as the delivery mechanism, are fiercely competitive and customer focused, yet I don’t see how an alliance can be mutually beneficial or benefit the industry as a whole.

Hence, I am inclined to see the alliance as just another rumour or another publicity stunt.

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