Bloomberg: Microsoft, Salesforce near cloud partnership deal

Bloomberg reports Microsoft (MSFT +0.1%) and Salesforce (CRM +2.2%) are near a deal that will allow Salesforce's cloud CRM apps to run on Microsoft's Azure cloud infrastructure/app development (IaaS/PaaS) platform. The companies are also reportedly discussing a data-integration deal involving Salesforce's apps and Office.

The report is particularly notable in light of the rivalry between the companies: Microsoft's Dynamics CRM apps (offered both on-premise and over the cloud) compete against Salesforce's apps, and Azure squares off against Salesforce's Heroku and (to a lesser extent) PaaS platforms.

But Satya Nadella has made it clear he's willing to increase Redmond's support for rival products/platforms when customers demand it. Microsoft is also intent on pulling out all the stops to challenge Amazon's public cloud leadership; Azure revenue rose 150% Y/Y in the March quarter.

Last year, Salesforce struck a data integration deal with another major rival, Oracle. That deal also called for Salesforce to standardize to buy Oracle's Exadata systems and standardize on its databases/middleware. More recently, Salesforce launched a service that lets Heroku apps built by third parties integrate with Salesforce's apps.

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Comments (2)
  • 12639091
    , contributor
    Comments (7) | Send Message
    This is Marc B struggling to deal with competition and seeking to block out the rise of the new version of Microsoft Dynamics...which is now a credible and very cost competitive option to SFDC.
    As enterprises move their on premise exchange to the cloud-based Office 365 solution, MS is offering the second generation Dynamics platform as a prize in the box.
    Having tight integration with the Office cloud and being at a price point that is hard to resist...Dynamics is a new headwind to the SFDC ship.
    Combine that with the second generation Oracle Sales Cloud solution which is seeing significant traction in the market...while gobbling up the best point solutions....and you have the need to Mr. Benioff to do what he does best. SPIN.
    BTW... the second thing he does best is spend money on SPIN.
    Take a look under the covers of this MS deal. The Oracle 'partnership' he struck last year was really him spinning the fact he had to make a huge purchase of Oracle technology to keep his business running and control costs. If you look under the covers of this 'partnership' announcement you will likely see Benioff buying a boat load of MS software and services too.
    29 May 2014, 12:49 PM Reply Like
  • Doyle3000
    , contributor
    Comments (2014) | Send Message
    If I'm MSFT and ORCL I'm just watching and waiting. Why would a Fortune 500 company who already uses MSFT or ORCL ever kick them out with these new arrangements that CRM is putting in place?


    I still don't understand how SFDC is going to make money no matter how many announcements it makes. This was the burning red flag of Enron. I'm not saying that CRM is cheating as bad, but they certainly have a way of misdirecting and obscuring how they are going to ever be profitable.


    The end isn't near, but I can see it more clearly this year. P.T. Benioff will walk out of the fire as a multi-billionaire but a lot of people are going to lose a lot of money when this dumpster explodes.
    29 May 2014, 02:04 PM Reply Like
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