Microsoft considers Salesforce's current market valuation expensive, one of the people said. It is possible that Microsoft could review a bid for Salesforce in the long term, the other person said.
The sources asked not to be identified because the deliberations are confidential.
Microsoft and Salesforce both declined to comment.
San Francisco-based Salesforce is No. 1 in the $23 billion-a-year customer relationship management (CRM) market, according to tech research firm Gartner. It helps corporations organise and track sales calls and leads.
Salesforce's services are entirely provided over the cloud, with no software directly installed on PCs. Oracle and Microsoft, which were relatively late to the cloud model, have much smaller online CRM revenues.
As a result, Microsoft and several other big software companies are seeking to beef up their presence in cloud computing.
Yet any deal for Salesforce, which has a market capitalisation of $49 billion, would be pricey. Salesforce's shares, which have risen 48 percent in the last 12 months, trade at 106.8 times the company's forward earnings, well above Microsoft's multiple of 19.1, according to Thomson Reuters data.
Last month, Oracle Chief Executive Safra Catz said her company could benefit if Microsoft or another rival bought Salesforce.com.
"It would cause a lot of disruption in that market and so I would view that as something that would be helpful to us, especially in the short or medium term, dependent on who it was," Catz said. She declined to comment on whether Oracle had made an approach to buy Salesforce.
Another potential buyer for Salesforce has ruled itself out. SAP SE Chief Executive Bill McDermott said earlier this week his company has "zero interest" in its software rival.
"We have never bought something that was impaired and in decline," he said, saying that Salesforce's cloud computing software was becoming commoditised.
5 comments:
With cloud computing, you eliminate those headaches because you’re not managing hardware and software—that’s the responsibility of an experienced vendor like salesforce.com. The shared infrastructure means it works like a utility: You only pay for what you need, upgrades are automatic, and scaling up or down is easy. Thanks for sharing this.
Salesforce Training in Chennai
Salesforce Certification
I have read your blog, it was good to read & I am getting some useful info's through your blog keep sharing... Informatica is an ETL tools helps to transform your old business leads into new vision. Learn informatica training in Chennai from corporate professionals with very good experience in informatica tool.
Regards,
Informatica training chennai|Informatica course in Chennai
Hi , Thanks For sharing such a useful post, I hope it’s useful to many individuals for developing their skill to get strong career soon.
Regards,
ccna training in Chennai|ccna training institute in Chennai|ccna institutes in Chennai
Introduction of cloud servers have created a greatest impact over data interpretation. Also they made a history in cloud computing. Handling data made much easier and more comfortable like never before. Your content tells the same about the emerging technology. Thanks for sharing this information in here.
Salesforce training in chennai | Salesforce training institutes in chennai | Salesforce course in chennai | Salesforce developer training in chennai
Very useful blog, really appreciate your hardwork.Thank you for the Information.Great information for beginners who will get motivation from this blog.
Selenium Training in chennai | Selenium Training in annanagar | Selenium Training in omr | Selenium Training in porur | Selenium Training in tambaram | Selenium Training in velachery
Post a Comment