This year has seen the big three tech companies competing in cloud computing throw down a lot of money to keep as much market share as possible. However, there are also several other companies keen to keep an edge in an increasingly competitive market.
Salesforce has now joined the acquisitions race by taking hold of Tableau for a reported $15.3billion this week. The tech company made its name as a customer relationship management (CRM) specialist but has sought to branch out further in recent years as its enterprise grew and customer needs evolved. The move is yet to be approved, but Salesforce is confident it will go through at this stage.
Its aim is to position itself not just as specialists for CRM, but also in a wider cloud computing sense. With the large amount of stock it has offered as part of the deal, it is clear that Salesforce is putting its full weight behind it. Its analytics software has been a cornerstone of its product offering for some time, and now this will be backed up by cloud-based data streams and new visual capabilities to help customers make improved data-driven decisions.
Salesforce already has healthy revenue figures, at over $13billion for 2019, but this opportunity to turn more raw sales data into reliable and accessible visual indicators could help it to carve out more of a niche in the market. However, shareholders are not impressed with the all-stock deal, as it dived 5% on the release of the news. It may be considered overpaying, but it shows how important they feel it is to branch into cloud tech.