Third quarter results for Salesforce and Slack So that really is balancing, making sure Slack has an independent brand and continues to serve every single company and integrates with every single system at your company while also making sure that it really achieved that vision that Marc talked about, which is it really becomes sort of the user interface for the Customer 360. And that's really connecting every single application at their company, not just applications from Salesforce. If you look at the happiest customers who use Slack, it is really that central nervous system for their company. I think our philosophy is very similar to our philosophy with MuleSoft and Tableau, which is, number one, starting with our mutual customers and starting for how can we help every one of our customers benefit from the combination of these two technologies. The integration playbook for Slack will rhyme with what Salesforce accomplished with MuleSoft and Tableau. The deal is expected to close in the second quarter of Salesforce's fiscal second quarter.īret Taylor, president and operating chief of Salesforce, said Slack will remain independent but there are areas where joint customers will benefit. Salesforce said the companies combined will have a strong developer ecosystem. Salesforce will also leverage Slack's open platform, which integrates more than 2,400 apps. As the new interface for Salesforce Customer 360, Slack will transform how people communicate, collaborate and take action on customer information across Salesforce as well as information from all of their other business apps and systems to be more productive, make smarter, faster decisions and create connected customer experiences. Slack will be deeply integrated into every Salesforce Cloud. On a more concrete level, Slack becomes the new interface for Customer 360. Here's a look at Salesforce's core clouds and growth trends. Slack despite facing stiff competition from Microsoft has been a clearly successful solution set further penetrating enterprises and thus looks like the natural fit for Salesforce to beef up its collaboration and messaging footprint and keep pace with Nadella & Co. With Salesforce having a treadmill approach to collaboration software with its Chatter solution and its 2016 acquisition of Quip gaining minimal traction, it was "now or never" to do a deal for Benioff. Microsoft with its Azure/Office 365 cloud stack and Teams enterprise messaging solution set has dominated the cloud over the past few years and accelerated its growth during this COVID-19 backdrop. The core reason for this deal in our opinion is to keep pace with the cloud behemoth in Redmond. Wedbush analyst Daniel Ives said Salesforce's acquisition of Slack is about keeping pace with Microsoft and Teams, developing a broader cloud platform approach and acknowledging that collaboration software will be a key category even when employees return to the office in some form.īut the biggest item that pushed the Salesforce-Slack deal was Microsoft, said Ives in a research note: Previously: Salesforce and Slack: A vision of collaborative sales, service with a dash of Microsoft defense | Salesforce could buy Microsoft Teams rival Slack next week Stewart Butterfield, Slack CEO, said the Salesforce acquisition is "the most strategic combination in the history of software." Salesforce launched Chatter in 2009, bought Quip in 2016, and just rolled out Salesforce Anywhere. The Slack purchase won't be Salesforce's first foray into collaboration. You also saw Slack Connect, which extends the benefit of Slack so employees can securely work and collaborating with partners, suppliers, customers.įor Salesforce, the Customer 360 link with Slack Connect, which enables enterprises and partners to collaborate, is compelling. And you can see all the CRM information, the sales the customer interactions. And it brings all the companies, people, the data, the tools together. It's the central nervous system of so many companies on this call and our company and so many of our great customers, connecting everyone and everything, and now we could go even bigger, better, more exciting. We see in Slack a once-in-a-generation company platform. This is our ultimate vision of having this incredible user interface on top of all of these services with all these channels and all the collaboration running on all these devices and integration, interactions. This is the next generation of the Customer 360. In a statement, Salesforce CEO Marc Benioff said the plan is to combine Slack with Salesforce Customer 360.
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