Subba’s Serendipitous moments

April 21, 2008

Google and Salesforce.com partnership

Filed under: Business,Strategy — Subbaraman Iyer @ 6:22 pm
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Google and Salesforce.com have decided to enter into a partnership with the objective of accelerating their sales of CRM and office software.

The NY Times carries the announcement and makes the point that this collaboration effort is targeted to fight Microsoft. While it is good news for the buyers, I believe that this is more targeted at on-premise software vendors like SAP and Oracle. I am sure both SAP and Oracle will be feel the pressure and accelerate their on-demand offerings.

Further, it would be interesting to see how this collaboration develops as days go by since both Google and Salesforce.com are moving on different trajectories. Salesforce.com is spending significant effort and resources in aggressively promoting their sfdc.com platform, rather than just their CRM applications. Google still hasn’t made any clear strategic commitments towards offering a complete MS Office alternative and taking on Microsoft. At this stage, it just helps Google to deploy their consumer applications like email, calendaring, IM etc. to get into the enterprise.

Hence I think the NY Times piece was just being narrowly focused on the potential benefits of the collaborative effort.

It would also be interesting to see what would happen if salesforce.com gets acquired as is widely rumored.

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