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Tquila - Extracting value from the Salesforce economy

Hafizah Osman | June 23, 2017
As the rise of the Salesforce ecosystem accelerates, ARN assesses the emerging opportunities centred around a new type of channel play.


Salesforce economy

From a partner perspective, the vendor recently launched the Salesforce AppExchange Partner Program, designed to accelerate the ability of any developer, start-up or ISV to build, market and sell intelligent applications.

“The convergence of AI, IoT and massive datasets has created incredible new opportunities for developers to move beyond the app— and build components, intelligent bots, data streams and more,” Salesforce executive vice president of AppExchange Leyla Seka added.

“The new AppExchange Partner Program empowers the next generation of Salesforce ISVs with a single destination for everything they need to succeed—the training to create solutions on cutting- edge Salesforce technology and the programs to turn them into businesses with global reach.”

The Salesforce AppExchange, the world’s largest and longest-running enterprise app marketplace, is home to more than 3,000 solutions for sales, service, marketing and more that have been installed more than four million times.

Nearly 90 per cent of the Fortune 100 have already installed apps from the AppExchange.

The result of such mass adoption is an applications economy bursting at the seams, driven by cloud and customer demands.

According to IDC research, Salesforce and its global ecosystem of partners will enable the creation of 1.9 million jobs within the Salesforce customer base from the use of cloud computing between 2015 and 2020.

During this same time frame, the Salesforce Economy — as it is known — will enable the creation of more than 2.8 million indirect jobs, or those jobs created in the supply and distribution chains serving Salesforce customers, as well as from new company employees spending money in the general economy.

In short, it’s a market set to accrue new business revenue of US$389 billion, through realising the potential of cloud.

“The Salesforce ecosystem revenue is three to four times bigger than Salesforce itself,” IDC senior vice president John F. Gantz said.

“Because organisations that spend on cloud computing subscriptions also spend on ancillary products and services, from additional cloud subscription and professional services to additional software applications, hardware, and managed services.”

Gantz said that for the most part, every cloud subscription sold is accompanied by other products and services, including additional cloud- based subscriptions (such as storage or security), additional applications to increase productivity, (such as digital signature or administration), or even hardware or networking.

Consequently, by 2020, for every dollar Salesforce makes, the company’s ecosystem will achieve US$4.14.

“If Salesforce merely grows at the rate of the cloud computing adoption, that means that the ecosystem will pull in more than US$100 billion in new revenue from 2015 through 2020,” Gantz added.

As the ecosystem expands at a rapid rate, partners are in hot pursuit because in addition to the chance to double revenue over the next five years, Gantz said partners continue to report “significant returns” from working with Salesforce.


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