“Got kitesurfing on the mind, mixed with some search & classification tech, and a dab of political ranting”

Google & Salesforce getting just a lil’ closer to my prediction

Posted by direwolff on April 14, 2008

Activities since August of 2006, have been bringing these two behemoths of the post-bubble Web closer and closer together.  Most recently is their announcement about integrating Google Apps with Salesforce’s CRM service.

In the last paragraph of a post back on October 4, 2005, I wrote:

So I posit here for a minute, what if Google were to acquire…hmmm…they don’t really overlap in their product offerings, and if anything complement each other quite well. As well,’s market cap is only $2.6B, and Google just got $4B in cash…doh! All I have to say is that Microsoft better not sleep with both eyes closed at this point, as I believe the assault on its operating system is coming from both Google and (at this point separate companies ;-), and could be very difficult to combat in the not-so-distant future.

Well, it looks like that “not-so-distant future” is a little less distant.  Marc Benioff’s response to Erick Schonfeld from TechCrunch when asked about why Google doesn’t just acquire Salesforce was, “You should give them a call and ask them about that”.  This is very telling that Marc probably agrees with the logical conclusion as well, these two companies should get married :)

One important change from my original October post is that Salesforce is worth a heck of a lot more, now having a market cap of $7.17B, but at Google’s $141B market cap, I’d say this is still somewhat of a rounding error acquisition that would catapult Google into a very stable and competitive position versus Microsoft and Oracle.  The clear advantage for Google here is that they would be playing the role of the progressive solution and have the significant advantage in the small-to-medium sized business market.  This surely is a case of the combined entities being worth a heck of a lot more than the sum of the parts.

2 Responses to “Google & Salesforce getting just a lil’ closer to my prediction”

  1. Robert T said

    Okay so Salesforce and Google is a good combo? Now what? There is no doubt that very few business users use 1/10 of what Microsoft office can do so Googledocs is enough for 90% of the business world, for sure. The really big story is whether Google can bring the web and onto cellphones in a GOOD way. google wants onto cellphones and sales force automation will be really big when users can use decent web apps optimized for 320 x 240 pixels on cell phones. That’s when everyone in a sales organization gets on and google can show us all the adds it wants and be the search platform inside my company’s database… but I have to ask: “What will they try to sell my salespeople while my people try to work?” New jobs via headhunter ads?

  2. p-air said

    Between what Google’s success on the iPhone and the recent app that Salesforce released at the announcement of Apple’s iPhone developer’s kit, I’d say that both of these companies, at least on the iPhone, are already leading the pack. However, don’t forget that in a world w/Salesforce as part of Google, Google doesn’t need the ad model to monetize salespeople, they’re getting montly fees for their use of the Salesforce application. In other words, Google doesn’t have to upset the apple cart so-to-speak, to make sense of the wireless oppty. If anything, Salesforce gives them a nice biz model to capitalize on for professionals, while consumer apps can still be ad model based.

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