“The revolutionary phase has just begun!”
“We are transporting to a definite bright future!”
These are some of the thoughts that will cross your mind when you hear the news and it is a big one. Only once in a blue moon have we seen that the world’s no. 1 CRM and no. 1 analytics platform companies come together to write a new future containing huge digital transformations for customers.
It was announced on Monday, 10th June 2019 by Salesforce that in a bid to step up its own work in data visualization and tools to assist enterprises to make sense of the data Salesforce is buying Tableau for $15.7 billion in an all-stock deal.
This is one of the largest acquisition deals that we will ever hear about in the history of Salesforce, one of the biggest San-Francisco-based companies. In fact, in the year 2008 it dished out more than double of the $6.5 billion for MuleSoft. But, this is a major news. Why? Google announcement came a few days back about its $2.6 billion acquisition of Locker, a business-intelligence software for data analysis.
It has been predicted that certain software functionalities of Tableau will be integrated with Salesforce Einstein, its AI-enabled assistant and recommendation engine. With the lethal combination of both Tableau and Einstein, Salesforce is set to deliver the most quick-witted and intuitive analytics and visualization platform for each and every department and user at any company. With the assistance of Tableau, the capabilities of both Customer 360 and Salesforce’s will become a lethal force to reckon with. This will result in the company to reach to a wider spectrum of users and target customers.
It has been observed that Customer 360 aids Salesforce to get all-inclusive, quick-witted information pertaining to their customers by looking at different parameters like commerce, sales, marketing, service, and more. With the right amalgamation of Salesforce pioneered AI for CRM and Salesforce Einstein it will give way to AI-powered analytics that can come handy for sales and marketing.
Now, people who closely have their eyes on share market might have observed that before the M & A deal, Tableau had a market capitalization of approximately $10.8 billion. After the announcement on Monday, the shares of Tableau are trading at 35% higher.
It has already been confirmed that after the acquisition headquarter of Tableau will be in Seattle where it will work independently under its brand name. Also, the second headquarter of Salesforce will be in Seattle.
“With Tableau, Seattle will become our second headquarters of Salesforce,” said Marc Benioff, Salesforce co-founder and co-CEO, on a conference call with analysts and investors. “It’s going to become our HQ2, if you will.”
Salesforce already has a workforce of more than 1,000 employees in the Seattle region. While Tableau has more than 4,200 people on a global basis.
With this deal, Salesforce will become a much greater source to reckon with when it comes to driving digital transformation. It will become quite easy for companies to gather information pertaining to their business. Through useful insights companies will be able to make smarter decisions and provide superlative customer experiences with record breaking speedy innovation.
Recently, companies of different sizes and catering to different industries are opting for the innovative route to transform their business in the digital age. Customers and data are the key things that are going to drive the transformations. This is the right opportunity for Salesforce and Tableau to devise digital transformation that will reach $1.8 trillion dollars in the year 2022.
According to Keith Block, co-CEO of Salesforce, “Salesforce’s grand success can be attributed to the exceptional ability to anticipate the requirements of our customers and providing them with solutions that will assist in growing their business.” He further added, “Data is the basic thing on which digital transformation happens. With the addition of Tableau, it will become possible to speed up our ability to deliver customer success through a truly unified and powerful view across different customer’s data.”
Things are looking quite positive for Salesforce after the acquisition deal with Tableau. The interesting thing that needs to be followed is whether they can live up to the expectations levied by the growing needs of digital transformation in the near future. It is simply a wait and watch thing. But, one thing is for sure that Salesforce will become a force to reckon with in the near future.