360° Coverage : Microsoft Targets Enterprise Clients With Strategic Salesforce...

Microsoft Targets Enterprise Clients With Strategic Salesforce Partnership

Jun 10 2014, 7:54am CDT | by

Microsoft and Salesforce.com have recently entered a strategic partnership to offer Salesforce.com’s Customer RelationshipManagement app on Microsoft’s Windows and Azure platform. Furthermore, the companies are planning to create interoperability between Salesforce.com’s CRM Software as a Service (SaaS) applaications and Microsoft Office 365. This partnership once again brings into focus Microsoft’s newly energized “Mobile First, Cloud First” strategy, and Salesforce.com’s efforts to increase the coverage of its offering across different platforms. In this article, we will briefly look at the recent partnership arrangement and how both companies will benefit from it.

See our complete analysis of Microsoft here

The Offering

Both companies have stressed on the importance of collaboration, and through this partnership will work towards connecting customers that use both salesforce.com’s CRM platform and Windows products extensively. The companies plan to deliver the following solutions:

  • Salesforce1 for Windows and Windows Phone 8.1 will enable customers to access Salesforce from their Windows devices. A preview is planned to be available in fall 2014 with general availability in 2015.
  • Salesforce for Office 365 is a new solution for interoperability between Salesforce and Office 365. It will give customers access to the content that they need to collaborate, sell, service and market from the Windows platform. Some of the planned features includes accessing, sharing, editing and collaborating on Office content from within Salesforce, and on Salesforce1 using Office Mobile, Office for iPad and Office 365.

Win-Win Situation For Both Companies

Microsoft draws over 50% of its revenues from sale of licenses for its flagship operating system Windows and productivity suite Office. With Windows 8 and the Surface launch, Microsoft introduced a uniform interface across its device environments: PCs, Tablets and Smart Phones. And it is working hard to popularize its Cloud offering, include the Azure development platform and Office 365. In the past few quarters, its OS sales have taken a dip due to tepid PC sales, and its latest version of Windows 8.1 has been slow to take off. Furthermore, competition in productivity suites, especially from Google Docs, has eroded some of Microsft’s market share. To counter these trends, the company is offering discounts to OEMs for Windows 8.1 cheaper devices, and Office productivity suite on different platforms such as iPad.
/>

Furthermore, Microsoft is increasingly targeting enterprise customers to reignite sales of Windows through new hardware launches. We believe that the company is strategically positioned to target enterprise clients since corporations around the world continue to favor Windows as their Operating System. This partnership will further Microsoft’s cause to deliver a world class product on its platform.

Moreover, Salesforce CRM delivered through cloud, resonates well with small and medium enterprises that lack dedicated hardware budgets to complement on-premise CRM bundles. Its latest offering, Salesforce1, allows users to access Salesforce’s desktop platform through a mobile interface with easier and customized services for its customers. The new Salesforce1 platform, intended for smartphones and tablets, has 10 times more Application Programming Interfaces (APIs) than any other Salesforce platform. This allows application developers across small, medium and large enterprises to leverage customer mobile connectivity and provide their applications across various platforms and interfaces. With this agreement, both companies intend to better integrate their Cloud environments.

Both Microsoft and Salesforce stand to gain from this partnership. While Salesforce can target its customers on Windows mobile and tablet, Microsoft can attract more enterprise clients for its Surface tablet and mobile phones. Given the growth potential within the smartphone service market, we expect good demand for the product from various enterprises and this should translate into additional revenue growth for Microsoft’s hardware business and Salesforce’s CRM business.

However, we have yet to analyze how this partnership might affect Microsoft’s competing Dynamic CRM, which has a revenue run-rate of over $1.5 billion and a market share of nearly 7% in 2013. Going forward, we expect accelerated growth in the CRM software market globally due to rising adoption by enterprises, and across industries such as mobility, social media and technologies, web analytics, and e-commerce. Technology research firm Gartner recently updated its forecast for the CRM market from $21 billion to $37 billion by 2017. The report also points out that the CRM industry is witnessing growth faster than forecast, which indicates the immense opportunity that companies such as Salesforce, SAP, Microsoft and Oracle have in this market.
/>

At present, we have $41 price estimate for Microsoft, which is approximately 3.2% above the current market price.

See More at Trefis | View Interactive Institutional Research (Powered by Trefis) | Get Trefis Technology

Like our charts? Embed them in your own posts using the Trefis WordPress Plugin.

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Apple Planning to Open 25 New Stores in China within Two Years
Apple Planning to Open 25 New Stores in China within Two Years
Tim Cook reveals that Apple is thinking to build 25 additional stores in the massive Chinese market
 
 
Nike CEO Indicates Cooperation with Apple to Build New Wearable Products
Nike CEO Indicates Cooperation with Apple to Build New Wearable Products
Mark Parker says that Nike and CEO can do those things together that would have been impossible working “independently.”
 
 
iPhone 6 Plus Affected with Crashing Issues
iPhone 6 Plus Affected with Crashing Issues
The largest version of the iPhone has been found to either crash or gets rebooted on a constant basis
 
 
Apple Ditches SSL 3.0
Apple Ditches SSL 3.0
Apple is switching to TLS encryption after new vulnerabilities
 
 
 

Latest from the Network

Second MERS case reported in Qatar
Doha, Oct 23 (IANS) A 43-year-old man in Qatar has tested positive for Middle East Respiratory Syndrome (MERS) in the second confirmed case of the deadly virus in 10 days, media reported Thursday. The patient had...
Read more on Business Balla
 
Two people die in Pakistan bomb blast
Islamabad, Oct 23 (IANS) At least two people were killed and 12 others injured in an explosion that took place in Pakistan's Balochistan province Thursday, media reported. The bomb was planted on a motorcycle, Dawn...
Read more on Politics Balla
 
Trott extends contract with Warwickshire till 2017
London, Oct 23 (IANS) England batsman Jonathan Trott, whose mental issues led to his abrupt departure from last winter's Ashes tour, has confirmed his successful comeback to competitive cricket by signing a new three-...
Read more on Sport Balla
 
Srikanth, Kashyap big movers in BWF rankings
Kuala Lumpur, Oct 23 (IANS) Indian men shuttlers Kidambi Srikanth and Parupalli Kashyap jumped seven places each in the latest Badminton World Federation (BWF) rankings released Thursday while Olympic bronze medallist...
Read more on Sport Balla
 
Alvin Stardust dead
London, Oct 23 (IANS) English singer Alvin Stardust died after a short illness. He was 72. Stardust's manager confirmed the news about his demise Thursday, reports mirror.co.uk. He was recently diagnosed with...
Read more on Celebrity Balla
 
Indian man reunited with family after 40 years
Dubai, Oct 23 (IANS) An Indian man, who had disappeared from his hometown in Kerala nearly 40 years ago, has been found by his family at a hospital in Dubai in the UAE, a newspaper report said. Now in his 60s, Abdulla...
Read more on Politics Balla
 
Srikanth, Kashyap, Saina rise in world rankings
Kala Lumpur, Oct 23 (IANS) Indian men shuttlers Kidambi Srikanth and Parupalli Kashyap jumped seven places each in the latest released Badminton World Federation (BWF) rankings Thursday while Olympic bronze medallist...
Read more on Sport Balla
 
Flintoff signs for Big Bash side Brisbane Heat
Brisbane, Oct 23 (IANS) Former England captain and all-rounder Andrew Flintoff, who retired from international cricket in 2009, Wednesday confirmed that he will play for Brisbane Heat in the Big Bash League (BBL) this...
Read more on Sport Balla
 
OPEC daily basket price falls again
Vienna, Oct 23 (IANS/WAM) The basket of 12 crude oils of the Organization of Petroleum Exporting Countries (OPEC) closed at $81.94 a barrel Wednesday compared to $82.09 Tuesday, the OPEC Secretariat said. The new OPEC...
Read more on Business Balla
 
Lopez to sign multi-million dollar deal?
Los Angeles, Oct 23 (IANS) Singer-actress Jennifer Lopez is reportedly in the final stages of securing a multi-million dollar deal to perform in Las Vegas. The 45-year-old is being offered $350,000 per show at The...
Read more on Celebrity Balla