Cloud CRM vendor believes Tableau can help it attack $1.8 trillion digital transformation opportunity
Salesforce is paying a premium to acqure the tools of data visualization vendor Tableau.
The Lowdown: The all-stock deal values Tableau at $15.7 billion, 13.5 times the company’s 2018 gross revenue. Tableau brings with it a strong recurring revenue stream that topped $841 million in 2018, making it a strong contributor to Salesforce’s existing subscription and services income and profit model.
The Details: Salesforce will integrate Tableau’s data visualization and analytics tools with its Einstein artificial intelligence engine. The intent, Salesforce said in a statement, is to provide businesses with more tools for analyzing operations and productivity that fall under the digital transformation umbrella. According to market analyst firm IDC, businesses worldwide will spend more than $1.8 trillion on digital transformation programs by 2022.
The Impact: While Salesforce will integrate Tableau’s visualization tools with its CRM and management applications, Tableau will continue to operate as an independent company to prevent disruptions. Tableau and Salesforce operate similar channel models, both enabling integrators, resellers, and consultants to support customer experience through support and customization services. The synergies of Salesforce and Tableau should open new opportunities for professional service partners.
The Buzz: “We’re bringing together the world’s No. 1 CRM with the No. 1 analytics platform. Tableau helps people see and understand data, and Salesforce helps people engage and understand customers. It’s truly the best of both worlds for our customers–bringing together two critical platforms that every customer needs to understand their world,” said Marc Benioff, chairman and co-CEO of Salesforce. “I’m thrilled to welcome Adam and his team to Salesforce.”
“Joining forces with Salesforce will enhance our ability to help people everywhere see and understand data,” said Adam Selipsky, president and CEO of Tableau. “As part of the world’s No. 1 CRM company, Tableau’s intuitive and powerful analytics will enable millions more people to discover actionable insights across their entire organizations. I’m delighted that our companies share very similar cultures and a relentless focus on customer success. I look forward to working together in support of our customers and communities.”