Certified Salesforce Commerce cloud

Salesforce-Demandware Acquisition


Confused by the title? Misread it? Nope you read it right.

Salesforce provides certifications on Sales Cloud, Service Cloud and Marketing Cloud, where did Commerce cloud come from. There has been a major hype on the recent Salesforce-Demandware acquisition. Yes you heard it right, Salesforce is acquiring Demandware Inc., a digital commerce company that had gone public in 2012, for a whooping $2.8 billion. This will be the biggest acquisition by Salesforce in terms of money since the acquisition of Exact Target back in 2013 for $2.5 billion. The deal is expected to be closed by the end of July and Demandware is expected to become Salesforce Commerce Cloud.



Who is Demandware?

Demandware is the industry’s leading enterprise cloud commerce platform that enables brands to deliver unified, personalized experiences for consumers across every touchpoint. It has more than 1,000 employees with headquarters based in Burlington, MA along with additional offices across the U.S., as well as Australia, China, Denmark, France, Germany, Italy, Japan and the Netherlands. It has a significant presence in the retail sector, and is associated with brands such as L’Oreal, Adidas, Crocs, Puma and Callaway. The company’s revenues grew by nearly 38% during the past year. This move by Salesforce will not only help Salesforce expand its customer base but also strengthen its presence in Europe.



Why the Acquisition?

This acquisition will mark Salesforce’s entry into the e-commerce domain, thus expanding its horizon. Salesforce currently has a 20% market share in the CRM domain, making it the #1 CRM and an year-on-year growth of 8.2%, followed by SAP (10.2%) and then by Oracle (7.8%) where both had a negative year-on-year growth. Both SAP and Oracle have already entered the E-Commerce domain with the acquisition of Hybris and Art Technology group respectively. Thus with this acquisition of Demandware by Salesforce will give an even stronger competition to its rivals.

Benefits to Salesforce?

The Salesforce Commerce Cloud will be an integral part of Salesforce’s Customer Success Platform, creating opportunities for companies to connect with their customers in entirely new ways. Salesforce customers will have access to the industry’s leading enterprise cloud commerce platform, and Demandware customers will be able to leverage Salesforce’s leading sales, service, marketing, communities, analytics, IoT and platform solutions to deliver a more comprehensive, personalized consumer experience. Salesforce expects the deal to increase its annual revenue by between $100 million to $120 million.

Salesforce Acquisitions Till Date:

Date Acquired Amount
Jun 1, 2016 $2.8B in Cash
May 9, 2016 Unknown
Apr 4, 2016 $32.8M (terms undisclosed)
Feb 19, 2016 Unknown
Dec 23, 2015 $360M in Stock
Dec 14, 2015 Unknown
Jul 31, 2015 $24.2M (terms undisclosed)
May 29, 2015 Unknown
Apr 1, 2015 Unknown
Jul 11, 2014 $390M (terms undisclosed)
Jun 7, 2013 Unknown
Jun 4, 2013 $2.5B (terms undisclosed)
May 9, 2013 $12M (terms undisclosed)
Feb 6, 2013 Unknown
Nov 23, 2012 Unknown
Jul 9, 2012 $70M in Cash
Jun 25, 2012 Unknown
Jun 18, 2012 Unknown
Jun 4, 2012 $689M (terms undisclosed)
May 1, 2012 Unknown
Dec 15, 2011 Unknown
Nov 14, 2011 Unknown
Sep 21, 2011 $50M in Cash
Aug 26, 2011 Unknown
Mar 30, 2011 $326M in Cash & Stock
Feb 1, 2011 Unknown
Jan 6, 2011 $31M in Cash
Dec 21, 2010 Unknown
Dec 8, 2010 $250M in Cash & Stock
Oct 27, 2010 $170M (terms undisclosed)
Sep 24, 2010 Unknown
May 28, 2010 Cash
Apr 21, 2010 $142M in Cash
Dec 31, 2009 Unknown
Dec 11, 2009 Unknown
Aug 19, 2008 $31.5M in Cash
Apr 10, 2007 Unknown
Aug 22, 2006 Unknown
Apr 11, 2006 Unknown

* Source: crunchbase


Earlier in May 2016, Salesforce selected Amazon Web Services as its preferred public cloud infrastructure provider, announcing its international infrastructure expansion including Sales Cloud, Service Cloud, App Cloud, Community Cloud, Analytics Cloud and more. With all the recent announcements from Salesforce, may it be awarding AWS its infrastructure or be it the acquisition of Demandware, Salesforce has always been in the limelight and is expected to have a great future ahead. Salesforce has been the #1 CRM platform and will tend to be the #1 CRM for a long time. What are your thoughts on this latest acquisition by Salesforce?


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