As per a Bloomberg report, CRM platform provider
) has entered into a strategic alliance with the world's largest
), to offer Salesforce's CRM services on Microsoft Azure.
The partnership ensures tighter integration between Microsoft and
Salesforce clouds, which will help customers to easily and securely
move their data between the two platforms.
Additionally, the agreement will improve ties between the two
companies. Microsoft's customer relationship management (CRM)
software equips organizations with advanced cloud-based
technologies that increase the efficiency of their operations,
solve complex business challenges and improve resource allocation.
Salesforce also offers similar capabilities.
We believe that the partnership will prove to be mutually
beneficial for both the companies going forward. According to the
research firm Gartner, Salesforce recorded the fastest growth,
breaking into the list of top 10 SaaS providers for the first time
from the 12th position in 2013. We believe that the rapid adoption
of Salesforce platforms will help Microsoft, as it will not only
remove a significant competitor but also demonstrate opportunities
in the ever-growing cloud computing segment.
It is also worth noting that Salesforce had previously inked a deal
). This nine-year Oracle-Salesforce deal covers every aspect of
cloud computing. Under the terms of the deal, Salesforce software
will run on Oracle's Linux (previously Salesforce used Red Hat
Linux) and its cloud based applications will support Exadata
These partnerships will add value to Salesforce's existing
portfolio and the resultant synergies will benefit the company in
the long run.
Although, the company is growing reasonably in the cloud market,
growth prospects have been rationalized to a considerable extent
due to intensifying competition from
) and SAP AG. Moreover, continued weakness in Europe, currency
headwinds and increased investments in research & development
(R&D) will keep margins under pressure.
Currently, Salesforce has a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
SALESFORCE.COM (CRM): Free Stock Analysis
INTL BUS MACH (IBM): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis
ORACLE CORP (ORCL): Free Stock Analysis Report
To read this article on Zacks.com click here.