Salesforce is Acquiring Tableau for $15.7 Billion
The Cloud is an interesting place in 2019
Tableau, a Seattle-based company that specializes in data visualization, is being acquired for $15.3 billion in stock.
This deal is heralded by the CEOs of both firms as a match made in heaven as Salesforce deepens its reach into data analytics. However stocks of Salesforce were down immediately after the announcement.
So what I like about this deal is it shows the progression of Salesforce in its powerful niche. Tableau is a leading analytics platform that will help Salesforce augment its current product offerings, which include tools to help companies with sales, marketing and customer service. There’s incredible alignment here.
If Data is the New Oil
It’s all about how enterprises make sense of all the data. This is really a bid to step up its own work in data visualization and (more generally) tools to help enterprises make sense of the sea of data that they use and amass.
San Francisco-based Salesforce, which purports to be the global leader in CRM, has been making headway in recent years. They are likely to be around for a long time since they are so ubiquitous to the life of business development professionals.
Salesforce already has around 1,000 employees in Bellevue, Washington, and the numbers will grow once Tableau joins the company officially. This means Seattle really will be the 2nd HQ of Salesforce, I think. Salesforce is whispering to Silicon Valley, “Hello, Microsoft and Amazon, we’re coming at you”.
Salesforce as a Digital Transformation Leader
The acquisition, after the transition period which could be painful, should boost its 2020 revenue by up to $400 million.
The Tableau deal dwarfs the company’s previous largest acquisition, application integration provider Mulesoft, which Salesforce bought for $6.5 billion in 2016. It shows a company willing to take bolder risks and of course these synergies are really strong.
Tableau’s data analytics and visualization platform has 86,000 customers, including Charles Schwab and Southwest Airlines. That’s a lot!
Salesforce expects to play a greater role in driving digital transformation, enabling companies around the world to tap into data across their entire business and surface deeper insights to make smarter decisions, drive intelligent, connected customer experiences and accelerate innovation.
What could go wrong? Salesforce continues to diversify beyond CRM software and into deeper layers of analytics and it impresses me.
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