In 1999, four tech professionals took a chance on a novel concept: delivering software as a service. Over two decades later, their company, Salesforce, became a leader in the customer relationship management industry, with a valuation of $140 billion.
Salesforce’s success didn’t happen overnight: it was a result of Marc Benioff’s visionary leadership, strategic partnerships, and unwavering commitment to innovation.
In this article, we’ll explore Salesforce’s fascinating journey from a startup to a billion-dollar empire.
History
Marc Benioff, a former Oracle executive, believed that enterprise software was headed toward a future in which data would be stored in the cloud, rather than on servers maintained by individual companies.
He recruited three other tech professionals – Parker Harris, Dave Moellenhoff, and Frank Dominguez – to join him in creating a software-as-a-service company that would revolutionize the industry.
They called it Salesforce, in reference to the sales-focused capabilities of the software they were developing.
CRM
A New Era in Customer Relationship Management
Salesforce’s initial offering was software that enabled sales teams to track their interactions with leads and customers.
But Benioff soon realized that the platform could be used for more than just sales. He expanded the software’s capabilities to include customer service, marketing, and analytics features, making Salesforce the first company to develop a comprehensive customer relationship management (CRM) platform.
Partnerships and Acquisitions
One of the company’s greatest strengths is its strategic partnerships. In 2003, Salesforce partnered with Google to integrate Google AdWords into the platform, allowing businesses to track the effectiveness of their online advertising campaigns.
A few years later, the company partnered with Facebook to launch the Salesforce AppExchange, a marketplace for third-party apps that integrate with Salesforce’s platform.
Strategies
Salesforce also made strategic acquisitions to bolster its capabilities. In 2013, the company acquired the marketing automation platform ExactTarget for $2.5 billion, adding email marketing and automation capabilities to its offerings.
In 2016, they acquired productivity software company Quip for $750 million, giving users the ability to create and collaborate on documents, spreadsheets, and other files within the Salesforce platform.
Trailblazing Innovation
Salesforce has always been at the forefront of innovation, constantly pushing the boundaries of what’s possible with enterprise software.
In 2015, the company introduced Einstein, an artificial intelligence platform that uses machine learning algorithms to provide predictive insights for sales, service, and marketing teams.
In the years since, Einstein has been integrated into various parts of the main platform, providing users with valuable insights that help them make better decisions.
Major Salesforce Acquisitions
Ariba
In 2004, the company acquired Ariba, a company that specializes in procurement and supply management. The acquisition was aimed at bolstering Salesforce’s procurement offerings.
Shortly after the acquisition, the company launched its AppExchange platform, which allowed developers to create and sell procurement applications within the Salesforce ecosystem.
Although the acquisition helped the business expand into a new market, it did not result in significant revenue growth.
The Salesforce Purchase of Tableau
In 2019, the company acquired Tableau, a data visualization company, for $15.7 billion. Tableau’s expertise in data visualization paired well with Salesforce’s services, allowing clients to transform data into insights and make data-driven decisions.
Since the acquisition, Tableau has been integrated into Salesforce’s platform, and it has significantly expanded the company’s offerings. This acquisition has been one of the software company’s most successful acquisitions to date.
Quip
In 2016, the company acquired Quip, a productivity software company that allowed users to create and collaborate on documents and spreadsheets in real-time.
Quip was integrated into Salesforce’s platform and has helped the company expand its offerings into the productivity software market.
The acquisition was successful in helping them broaden its market, but it did not result in significant revenue growth.
ExactTarget
In 2013, the company acquired ExactTarget, a marketing automation company, for $2.5 billion. The acquisition was aimed at expanding Salesforce’s marketing offerings, and it was considered one of the most significant acquisitions in the company’s history.
ExactTarget was integrated into Salesforce’s platform, and it helped the company expand into the marketing automation market. The acquisition was successful, and it helped the business increase its revenue.
Salesforce and Demandware
In 2016, the company acquired Demandware, an e-commerce platform, for $2.8 billion. The acquisition allowed the company to expand its offerings into the e-commerce market. The business renamed Demandware to Salesforce Commerce Cloud and integrated it into the Salesforce platform.
The acquisition helped greatly expand Salesforce’s offerings, and it helped the company grow its revenue.
Timeline
1999:
Salesforce is founded by Marc Benioff, Parker Harris, Dave Moellenhoff, and Frank Dominguez. Subsequently, the company launches its first product, Salesforce Customer Relationship Management (CRM) software, as a cloud-based solution.
In 2000, Salesforce.com raises $64 million in funding from various investors. Additionally, the company introduces AppExchange, an online marketplace for third-party applications built on the Salesforce platform.
Moving forward to 2003, Salesforce reaches 5,000 customers and goes public with an initial public offering (IPO) on the New York Stock Exchange under the ticker symbol “CRM.”
In 2004, the business takes significant steps by launching Salesforce.com S3, the third generation of its CRM platform. Furthermore, the company introduces the concept of “Software as a Service” (SaaS) and popularizes the cloud computing model.
The year 2005 marks another milestone for Salesforce as it introduces the AppExchange OEM Edition, allowing partners to build and sell their own applications on the Salesforce platform.
In 2006, Salesforce further enhances its offerings with the launch of Salesforce Mobile, a mobile application for accessing CRM data on smartphones. Additionally, the company acquires Sendia Corporation, expanding its mobile capabilities.
Fast forward to 2008, the company makes significant progress with the launch of Force.com, a platform-as-a-service (PaaS) offering that allows developers to build and deploy custom applications on the Salesforce infrastructure. Moreover, the company introduces Salesforce Content, a content management and collaboration tool.
In 2009, Salesforce continues its path of innovation by introducing Chatter, a social collaboration platform integrated with the CRM system. Additionally, the company acquires Jigsaw, a data services provider, to enhance its data quality and enrichment capabilities.
2010 and Beyond
The year 2012 witnessed Salesforce’s expansion with the acquisition of Buddy Media, a social media marketing platform. Furthermore, the company launches Salesforce Communities, enabling organizations to build private social networks for customers, partners, and employees.
In 2013, the business strengthens its position in the market by acquiring ExactTarget, a digital marketing software company, and renaming it Salesforce Marketing Cloud. Additionally, the company introduces Salesforce1, a new platform that unifies its various cloud offerings and provides mobile app development tools.
Moving to 2014, Salesforce introduces Salesforce Lightning, a redesigned and more customizable user interface for its CRM platform. Furthermore, the company launches Salesforce Analytics Cloud, a business intelligence and data visualization tool.
In 2015, the company expands its capabilities by acquiring SteelBrick, a quote-to-cash software provider, and later renaming it Salesforce CPQ (Configure, Price, Quote). Moreover, the company introduces Salesforce Einstein, an artificial intelligence (AI) platform embedded within its products.
In 2016, the company continues its growth journey by acquiring Demandware, an e-commerce platform, and renaming it Salesforce Commerce Cloud. Additionally, the company introduces Salesforce DX, a set of development tools and practices for building and deploying applications on the Salesforce platform.
2018 brings another significant acquisition for the company as it completes the acquisition of MuleSoft, a data integration platform, expanding its capabilities for connecting and integrating various systems. Furthermore, the company introduces Salesforce Blockchain, a distributed ledger technology for secure and transparent data sharing.
In 2019, Salesforce strengthens its analytics offerings with the acquisition of Tableau Software, a data visualization and analytics platform. Additionally, the company launches Salesforce Customer 360, a platform that provides a unified view of customer data across multiple systems.
Recent Purchases
In 2020, the business makes headlines with the announcement of the acquisition of Slack, a collaboration and messaging platform. Additionally, the company launches Salesforce Anywhere, a suite of productivity tools for remote collaboration and communication.
Moving forward to 2021, the company completes the integration of Slack’s features into its ecosystem, further enhancing its offerings. Moreover, the company introduces Salesforce Hyperforce, a re-architected and globally available infrastructure to support its cloud services.
In 2022, the company focuses on expanding its professional services capabilities with the acquisition of Acumen Solutions, a global cloud consultancy firm. Additionally, the company launches Salesforce CDP (Customer Data Platform), a unified platform for collecting, organizing, and activating customer data.
As of 2023, the business continues to be a pioneer in the industry, driving innovation with a strong focus on enhancing AI capabilities and providing a comprehensive customer experience platform tailored to various industries.
Conclusion
Today, Salesforce is a dominant player in the CRM industry, with a customer base that includes many of the world’s largest companies. But the company’s success is not just due to its cutting-edge technology – it’s also a result of its commitment to social responsibility.
The world has recognized the company as one of the most innovative companies and a leader in environmental and social responsibility.
Its 1-1-1 model, which donates 1% of the company’s equity, product, and employees’ time to charity, has inspired other companies to follow suit.
As the company continues to expand its offerings and shape the future of enterprise software, it remains committed to its core values of trust, innovation, equality, and sustainability. We can’t wait to see what the company will accomplish next.
