« Can Private Equity Save Palm? | Main | Ask.com's New Look »

June 04, 2007


El Mocoso

2 reasons why this deal would not happen if Google was the only suitor: Mark Beninoff. His gigantic, Oracle-bred, overly-inflated-sense-of-own self worth would prevent any single bid to suffice. MSFT, SAP, IBM, all have to looking in on this and perhaps 1 would step forward to offer an alternative that would satify Beninoff's ego.


Benioff's deplorable self aside, there are other reasons why Google should stay away.
While CRM pompously announced "The End of Software" it is run by people who grew up in a bigger software juggernaut than even Microsoft -- namely Oracle. The software is priced at an outrageous $60 PER USER PER MONTH (think service, think phone company or hosting -- not quite in the ballpark) for a glorified contact manager. It is software that is being sold, not the end of software. It is sales reps (most from Oracle) who are used to skinning the customer and are now skinning the customer in a new way.
The only good thing about this company and this stock is that its revenue is based on monthly services and that the executives there can not commit the revenue recognition fraud they have perfected at Oracle, Peoplesoft, Siebel, etc.
Why would Google, a company that is genuinely original, that has managed to hire some of the best talent in the industry want to hook up with this gang of second-rate hustlers?

Jonathan Marcus

>Google Office fits perfectly with Salesforce CRM and App Exchange.

Huh? Absolutely ridiculous.

Salesforce is but one piece to a much larger ERP offering - particularly at the low end for smallER businesses. Netsuite is the real gem in the market.

Jack B

This is the kind of superficial and illogical analysis that makes Business 2.0 what it is. Clearly the two companies would do a deal since they both make money through the browser! And Marc's retirement plans are likely to guide the allocation of a $5B business vs. any notion of corporate strategy. And if you ask most of Google's big ticket advertisers what they are looking for (think Madison Ave advertisers), obviously hosted CRM is #1 on their list.

I think speculative journalism is a great way for Business 2.0 to build its brand rather than focusing on actual data and/or any kind of logical analysis of the market.

Erick Schonfeld

This is a blog, gentlemen. I'm allowed to speculate (and I believe I did label it as such).

Also, it's important to distinguish between the comments I've excerpted from TechCrunch (those are the ones in italics) and my own.

That said, there is a logical connection between Google's Web-based software ambitions and Salesforce's, and it has very little to do with the browser side of things. Salesforce has come a long way on the backend, server-hosting side, developing a technology platform that Gooogle could apply to any number of hosted software applications. Salesforce has solved some problems in that regard that Google hasn't, believe it or not. This isn't well understood (for more. click the link on Apex above).

Rob Koplowitz

I agree that a deeper relationship between the business application group at Google and Salesforce would be very interesting. Salesforce hs figured out out how to scale and make money in a multi-tenant environment. This is non-trivial and brings a lot to Google.I wouldn't go overboard on Gears yet. They have figured out how to do simple off-lining. The hard part, off-lining with potential multiple editors of the same information, is still to be cracked.

Chris Crosby

The company that salesforce.com should look to do a deal with is Cisco. With the recent WebEx acquisition it's clear they're embracing SaaS and collaboration with full force. Salesforce and Cisco already have a great partnership to deliver integrated solutions to the SMB. Don't count it out.


salesforce.com is nothing but an automated sales contact management system - good off the shelf for SMB. Trying to retrofit the "platform" now to be more than a simple app (one step above ACT) is turning into a clusterf__k. To try and make it an actual Customer Relationship Management system, you have to slap together numerous third party applications, resulting in a sloppy clunky user unfriendly "solution". mash-up is right. Would think that google is capable of coming up with a Saas platform from scratch that is well designed and elegant rather than acquire the salesforce.com mess.

The comments to this entry are closed.