Already the dominant player in the fields of customer relationship management, or CRM, Salesforce.com (NYSE: CRM) capitalizes on its acquisition of Slack to position itself as essential as businesses move from physical offices to digital spaces.
In this episode of “Beat & Raise” on Motley Fool Live, recorded September 27, Deidre Woollard, Editor-in-Chief of Millionacres, and Brian Withers, Fool.com contributor, discuss how Salesforce plans to use Slack as a key part of its growth plan, and how the cloud company itself has used Slack to get there.
Deidre Woollard: You look at this slide and you think, “Well, that doesn’t sound very optimistic” [laughs] but that’s a little misleading because what they were really talking about is positioning Salesforce as a growing company right now. You would think Salesforce is a relatively mature company, but what they are saying is that so much has changed in the digital world and everything was pivoting towards the digital office, the digital landscape, and that Salesforce is really perfectly fine. positioned for that with Slack on top of that. Let’s go down another slide. Let’s do one more. They talk about the new world as this huge opportunity. This idea that all businesses will be following this journey over the next three to four years to try and adapt to the digital landscape, moving from physical offices to digital, they kept referring to. Amy Weaver, who is their CFO and President, former General Counsel, kept talking about this as this digital transformation opportunity, the new office. This is really where they are heading and they see themselves as being in the realm of digital transformations. One of the things that they also talked about was all the different clouds and how the different clouds within Salesforce all contribute to each other, and I still think the next slide is a market. total investment and this is not the case. [laughs] Letâs go back because itâs also important. The way Salesforce, and we talked about it last time with Upgrade or Topgrade, Slack, is a new acquisition, but they see it as the front door. This is how your first interaction with your customers, with your employees, with everyone, is Slack and they put it at the center of their universe. This is a very important part of how Salesforce is going to move forward. Amy Weaver explained that they made a deal for Slack on Slack. She talked about what it was. They did their due diligence on Slack. They did all the parts of a deal like this, which my gosh is a really big deal, took place on Slack and so that’s just one example of how they see it. This is how the future of the company will be made. We’re not going to travel all over the place and shake hands with a piece of paper and in a conference room, that’s not how we’re going to do the future of business. We’re going to do this by starting with Slack and then connecting all of these other clouds.
Brian Withers: It was interesting for me, Deidre, to see how I learned on Investor Day that Salesforce was not a company-wide Slack company prior to the acquisition.
Deidre Woollard: Law. [laughs]
Brian Withers: They bought it, even though they hadn’t used it throughout our business. I think that says a lot about the importance of this acquisition.
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