On 10th of June 2019, Salesforce Inc acquired big data firm Tableau software, making it Salesforce’s biggest investment (worth $15.3 billion) by far. Prior to this, the biggest investment that Salesforce had made was for the purchase of cloud-based software company MuleSoft in 2018; the deal was worth $5.9 billion.
With the acquisition of Tableau, Salesforce plans to empower its customers with data insights. Tableau integration will allow users to analyze big-data from an array of databases as well as from customer segmentation & their intent analysis. Additionally, customers will also be able to harness the benefits of impactful dashboard reporting as Tableau is a powerful & versatile business intelligence tool.
The news follows Google’s announcement to acquire Looker (on 6th June 2019). Looker is an analytics startup similar to Tableau that has raised more than $280 million. Google has invested $2.6 billion for gaining the right to assimilate the tool with its Google Cloud Platform & the acquisition will be completed later this year.
Shares of Tableau witnessed an upsurge by 35% & became worth $169.50, while those of Salesforce dropped by 5% to $156.43 in premarket trading.
The acquisitions by Salesforce & Google imply that organizations nowadays are witnessing a digital renaissance & aim to transform in-a-way that equips them to acquire, store, process & analyze large quantities of data from several different platforms on one unified platform.
Steve Koenig, an analyst at Wedbush Securities, emphasized that the acquisition reflects on Salesforce’s ideology of providing an all-round 360-degree experience to all its customers, which starts with the collection of vital data related to customers & is followed by data analysis to derive meaningful insights.
Koenig also pointed out that the reason for the fall in the face value of Salesforce shares may be attributed to the speculations in the marketplace that imply that Salesforce has acquired Tableau in order to compensate for its slow organic growth.
Big data analytics encompasses trend mapping, text analytics, analysis of structured & unstructured data, establishing co-relations between several variables such as market trends & customer behavior & also helps in segmenting the buying prospects across several clusters on the basis of analysis of their demographic, firmographic, fit-data, technographic data, psychological data, cookie-data as well as on the basis of their research methodologies & past buying history.
Delving into all these insights, equip companies to make precise & fast business decisions, which are beneficial for delivering phenomenal experiences to customers, keeping abreast with the latest industry trends & thereby help companies achieve their bottom-line goal of optimizing conversions.
Salesforce co-CEO Marc Benioff is excited about the deal & stated that Tableau helps people in visualizing & understanding data while Salesforce helps in engaging the customers & analyzing them. He further added that the deal will add up to $400 million to the overall revenue of the company in 2020 & the adjusted profits will be in the range of $2.51 to $2.53 per share.
Salesforce.com Inc. is an American cloud-based software solution provider company with its headquarters in San Francisco, California. They brand themselves as a holistic platform for customer success & have a wide variety of social & cloud-based technologies including their own flagship sales & CRM applications. Salesforce serves as a uniform platform facilitating interconnectedness & effective communication between companies, customers, partners & employees. Customer data from Salesforce can be integrated with third-party tools & can be analyzed for deriving meaningful insights driving fast & intelligent business decisions.
Tableau is a data visualization & business intelligence tool that allows people to understand data. Tableau is a revolutionary tool & allows making visually interactive dashboards & can be connected to a PC or to an iPad. Dashboards can be created & shared & online meetings can be conducted with the help of Tableau. Seattle-based Tableau has more than 86,000 customers & includes big shots such as Verizon Communications & Netflix.