Salesforce is a major marketing and sales firm that is used by a wide range of different companies around the world. The company has just announced that they are going to be buying Demandware, an enterprise commerce platform, for a price of $2.8 Billion. They will use this acquisition to create a new business under their corporate umbrella called, “Commerce Cloud.”
Salesforce already has a variety of ‘clouds’ that are for sales, marketing, customer service, communities and analytics. The CEO, Marc Benioff, said that the acquisition will allow the company to, “be well positioned to deliver the future of our Customer Success Platform and create yet another billion dollar cloud.”
There were rumors that other major companies were looking into buying Demandware, which is why Salesforce likely paid a 56% premium over the going stock price. Some people have suggested that Adobe or Oracle was looking to buy the company.
This is a great acquisition for the company since it allows Salesforce to provide virtually every service in the marketing lifecycle now. This will help them to keep greater control over what they need to provide to customers. In addition, it will cut their costs since they won’t need to outsource this type of work going forward.
In the marketing industry, this is a very significant acquisition. It will be interesting to see how this effects the industry as a whole.
