On Technology

Wednesday, May 23, 2007

Google is thinking Partnership with Salesforce.com

For all the mergers and acquisitions the business world has seen in the past month, Google and Salesforce.com are reminding Wall Street that strategic alliances are still in style.
According to a Monday article in the Wall Street Journal, the two Internet companies are in talks about a partnership that would target Microsoft . The paper cited unnamed sources that claim the companies are working out details of a possible alliance that might be revealed within weeks.
Google is, of course, the Internet search king and online advertising titan. Salesforce.com is the fast-growth, on-demand CRM vendor. An alliance between the two could take the form of a Web-based offering that integrates some of Google's online services, such as Gmail and Google Talk, with Salesforce.com's CRM tools.

Dissecting the Rumor
Google and Salesforce.com could not immediately be reached for comment. But Wall Street liked the rumor. Sales of Salesforce.com stock rose about 5 percent on Monday morning, indicating that many are bullish about the impact of a partnership with Google. The deal would make plenty of sense from a public relations perspective. Microsoft is planning to release its CRM tool as a hosted application at the end of the second quarter. Both companies would love to steal some thunder from Redmond.
A partnership would get the attention of the market. We're talking about two of the biggest software-as-a-service companies -- and, oh, by the way, they have a common enemy in Microsoft. From a political standpoint, it makes a lot of sense for those two companies to be aligned.

Competing with Microsoft
Salesforce.com's emerging enemy is Microsoft Dynamics CRM Live. The software is powered by the upcoming release of Microsoft Dynamics CRM, codenamed "Titan," which uses the same code base to deliver both on-premise and hosted deployments. Dynamics CRM Live lets customers choose the deployment model that most closely matches their needs.
Microsoft is also boasting a partnership of its own with ExactTarget to offer a packaged integration of its on-demand e-mail software for e-mail marketing.
Salesforce.com's customers are no stranger to Google. Salesforce.com acquired a service last August that lets users create ads in Google AdWords and monitor their campaigns without leaving the Salesforce interface. That makes sense, because it gives Salesforce.com customers the opportunity to attract business, but he said he's not so sure how this extended alliance would work.
Though, thing to note is that, these companies have similar philosophies and enemies, but I don't see them having a common target audience yet. Everything Salesforce.com has done in the past year or two is concentrating on moving up to larger enterprises, where I think Google has a limited business impact today.

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