$10 billion marks hitched! Yes, now that I’ve your attention – Salesforce just cruised past $10 billion in annual revenue.
The leading CRM software vendor has been showing strong revenue growth year after year, and one of the major reasons behind this immense growth is the result of the farsightedness from Salesforce team in exploring and expanding its portfolio beyond the field of CRM. One such instance is the investment of $50 million for AI innovation fund which was announced by Salesforce Ventures.
If we look at the numbers for the full fiscal year 2018, the GAAP and non-GAAP diluted earnings per share were $0.17 and $1.35 respectively. Total cash generated from the operations was $2.74 billion.
There was a time when Sales Cloud was the major building block in the total revenue of Salesforce for instance in 2015 it was $2443 million, and in 2017 it was $3060.6 million. But things are changing rapidly, and Service Cloud is outperforming other divisions as in the year 2015 total revenue generated by Service Cloud was $1320.2 million, and in the year 2017, it rose to the figure of $2320.7 million. Expanding the product portfolio and farsightedness exhibited by the team of experts at Salesforce is the major reason behind the strong revenue figures.
The year of 2014 is considered as the base year for CRM by market analysts. Summarily from, myriad analyses, studies, and reports on CRM; in the year 2017, the CRM market was valued somewhere near the figure of $24.75 billion. Salesforce now has the highest CRM market share with the staggering figure of 19.7%.
Core Salesforce Solutions
Sales Cloud – A fully customizable product
Subscription and support revenue generated by the sales cloud for the year 2018 is $3554.3 million. Well, there is no doubt in the fact that Sales Cloud is the major building block of the total revenue generated by Salesforce. In coming years this very Salesforce solution can turn up to give double-digit growth.
Service Cloud – A complete CRM toolkit
Service cloud contributes $2877.1 million to the subscription and support revenue generated by Salesforce for the fiscal year 2018. This very core offering of Salesforce is catching up with Sales Cloud rapidly as can be seen from the revenue generated by this very service.
Field Service Lightning – The fastest growing SaaS Solutions for enterprises
Field Service Lightning is a product that Salesforce launched three years ago, and to everyone’s surprise, this very product has proved to be of great help to the company’s revenue generation strategy as this product has proved to be the fastest growing product offered by Salesforce. This very product is expected to bag nearly $100 million this year and is expected to double this figure in the year 2019.
The Next Step Forward
Salesforce and IBM Watson Strategic Partnership
Salesforce and IBM are partnering, and all this is planned in order to deliver joint solutions to customers which will be designed to use AI in order to help companies make smarter decisions faster. This partnership will combine the power of Salesforce Einstein with IBM Watson to deliver the best possible result to customers.
Salesforce and Google Cloud Strategic Partnership
Salesforce major goal as a leading CRM is to help companies to connect with their respective clients in new and innovative ways of delivering best customer experience. To notch up things a bit, Salesforce has announced a partnership with Google, and this partnership ensures that customers will be delivered smarter and more collaborative experience. A partnership that will result in new integrations connecting Salesforce with G Suite and Google Analytics.
Salesforce and AWS Strategic Partnership
Both are big names in their respective field. Well, one cannot compare the two brand names listed here, but one thing is for sure that the strategic partnership of Salesforce and AWS has surely been beneficial for both companies. Now one can setup as well as manage their customer contact center in minutes. This collaboration has given Salesforce an edge over other competitors in the CRM field.
Salesforce Einstein – The next-generation AI-enabled solutions
Salesforce has revolutionized the CRM industry by launching one of the most anticipated CRM products. Now companies of any size can easily deploy AI for their rescue and for delivering best customer experience.
The company is a proven innovator, and this is a major strength that Salesforce has that separates it from most of its competition in the market. They offer software longevity with the promise of increased payback for their customers. Salesforce has and promotes vibrant user community and offers these communities social channels and platforms to make them heard. So, if you have a business and you are serious about it consider exploiting the benefits that Salesforce is offering to its clients and join forces with the loyal and trustworthy team that will make sure you succeed.
Salesforce is trying very hard to keep their revenue in double digits. To make sure that the company surpasses the next big target of 20 billion, which is roughly twice the revenue that Salesforce generated in the fiscal year 2018, Salesforce is tying up with big names such as Google, IBM, and AWS. The introduction of AI surely has turned some heads and has provided Salesforce, an edge over competitors. You just can’t look ahead to the year 2018 without betting on the artificial intelligence. There is no doubt in the fact that the year 2018 is destined to be delivering a lot in return for Salesforce and its customers.
Predicting the future of this company can be a bit difficult but since, marketing discipline in every sector is getting more technical with every passing day, and the ability of Salesforce to offer a 360-degree customer view to the service providers, will surely turn it into as a widely accepted requirement for every serious enterprise. If Salesforce follows the same track and maintains its innovation curve steep, then we will predict that more public sector organizations and NFP will employ the services of Salesforce and will get benefited from the efficiency gains that their organizations desperately need to compete in the ever-evolving market. Salesforce has invested more than $2 billion for expanding to new and somewhat untouched market in EMEA regions.