Would Tableau Acquisition Change The Future Of Salesforce INC

Dean InfotechDean Infotech Friday, June 14, 2019
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Salesforce.com Inc- America's dominant sales tracking software made a deal to buy big data firm Tableau Software Inc for $15.3 billion, strengthening its fight with Microsoft Corp for a bigger share of the market. It says thatTableau Software will help businesses to target customers with more specialized tools and ways to analyze and visualize data. Currently, the data analyzing business is fast becoming a competitive arena. This is because of the tech behemoths like Alphabet Inc’s Google and Amazon.com Inc expanding up their presence in the market to take on recognized players like Microsoft and Tableau.


Wedbush Securities analyst Steve Koenig said that the deal would prove to be transformative for the software industry. He further said it to be the most dramatic move yet by a cloud major to enhance its analytics offerings.


Tableau’s large data analytics in extrication-hidden patterns, unknown correlations, market trends and customer preferences,will be beneficial for Salesforce’s customer relationship management software. Tableau’s software is often used to create interactive, visual dashboards and graphics used by businesses, universities and governments to scrutinize data ranging from corporate finances to baseball statistics.


The takeover of Tableau will mark as the biggest deal ever for Salesforce and it comes days after Google has bought big-data analytics company Looker for $2.6 billion. The deal surpasses the $5.9 billion that Salesforce paid to buy U.S. software maker MuleSoft in 2018.Co-Chief executive officers Marc Benioff and Keith Block of Salesforce have been chasing new markets to reach an annual revenue goal of as much as $28 Billion by fiscal 2023. Benioff has helped to increase Salesforce’s revenueat an incredible clip by acquiring more than 60 companies in 20 years.


With the deal, Salesforce is likely to drive digital transformation by offering organizational access to data and deeper insights helping the customers to make wiser choices, enhance connected customer relations and ramp up innovation. With the acquisition of Tableau, Salesforce’s Customer 360 initiative would probably get a major push. Tableau has a clientele of more than 86,000 inclusive of tech heavyweights such as Verizon Communications Inc and Netflix Inc.


The deal is estimated to close in the third quarter. After the third quarter Tableau would likely operate independently, led by Chief Executive Officer Adam Selipsky and its current leadership team. The company said that the deal between it and Salesforce is likely to add up to $400 million in its 2020 revenue, but would decrease adjusted profit by 37 cents to 39 cents per share.

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