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Salesforce benefits from growing CMO power, deals pressure SAP

  • Gartner estimates that by 2017, the largest portion of corporate IT spend will be controlled by chief marketing officers (CMOs) rather than CIOs. CLSA's Ed Maguire views cloud CRM software kingpin Salesforce (CRM) as a major beneficiary of this trend, particularly following its $2.5B deal to acquire ExactTarget. Salesforce is adding ExactTarget's marketing automation software to its growing Marketing Cloud platform.
  • Other ad software/tech names that benefit from a spending shift to CMOs include Adobe (ADBE), Responsys (MKTG), Marketo (MKTO), Constant Contact (CTCT), and Marin Software (MRIN). Adobe's own Marketing Cloud saw 28% Y/Y sales growth in the August quarter, and was recently bolstered by the $600M purchase of ad campaign software vendor Neolane.
  • Like Salesforce, SAP is trying to create an end-to-end CRM platform aimed at CMOs. It recently bought top e-commerce software firm hybris for a reported $1.2B-$1.5B.
  • Maguire also states Salesforce's data integration deal with Workday (WDAY), together with a prior deal with Oracle (ORCL), "reinforce [Salesforce's] prominence as a de facto CRM standard." He reports hearing of "at least one competitive engagement where a customer chose Oracle over Workday" because the latter's Salesforce integration wasn't good enough.
  • Nomura feels likewise about Salesforce, and thinks its deals help negate the historical edge SAP has had in app integration (courtesy of its own apps, rather than partnerships). With two key ERP/HR software rivals striking deals with Salesforce, SAP is on the spot to strike one of its own.
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Comments (2)
  • Micah
    , contributor
    Comments (478) | Send Message
     
    Interesting...

     

    I implemented a cloud based marketing automation platform for our company just over a year ago. Within the past 30 days, I also signed a contract for several licenses of Salesforce.com and am working to construct, train and deploy the platform now.

     

    We are also a Google Apps shop (as opposed to MS Exchange), so we can tightly integrate these (cloud) platforms in to our email, calendar, etc...with the flip of a switch.

     

    Our IT manager has not been involved in the decision, deployment, or management of these programs whatsoever.
    22 Sep 2013, 04:29 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (857) | Send Message
     
    Thanks for the first-hand feedback.
    22 Sep 2013, 07:57 PM Reply Like
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