Comprehensive software reviews to make better IT decisions
Salesforce Acquires Vlocity for $1.3 Billion, Doubling Down on Industry Focus
While completing a record fiscal year 2020 with total revenues clocking in at $17.1 billion, Salesforce announced the acquisition of Salesforce Ventures–funded Vlocity, a leading provider of industry-specific cloud and mobile platform software. Vlocity is a cloud-native solution built on the Salesforce platform.
Salesforce has been building out industry-vertical-based solutions for some time now, with clouds for finance, healthcare, manufacturing, and consumer goods, among others. The acquisition of Vlocity demonstrates a deepening commitment to provide specialized and custom functionality to these industry sectors. Vlocity is a Salesforce Ventures–funded company to the tune of over $100 million and has been a Salesforce partner for the past six years.
Vlocity revenues for calendar year 2019 exceeded $100 million. With Vlocity's purchase price over $1.3 billion, Salesforce is paying a premium for the company and speaking loudly about the value proposition it believes Vlocity brings to the table.
The goal of Vlocity’s founders was to achieve business transformation with industry-specific solutions that are better, faster, and cheaper than both legacy solutions and those realized via expensive custom software developments. Vlocity founders David Schmaier and Craig Ramsey were early customer relationship management (CRM) pioneers with Siebel Systems and Veeva Systems. Ramsey also served on the board of Salesforce for eleven years.
With a focus on industries that have unique requirements and business processes, many paper-based and outdated, the founders had the vision of digitally transforming these staid legacy business processes. Vlocity builds digital customer engagement models to realize this vision and has enhanced the platform with AI and Internet of Things capabilities along the way. Core industry segments include media, communications, health, energy, utilities, and government.
Customized industry-specific process areas of focus include configure, price, quote (CPQ) processes, product catalogs, and contract management, among others. The company currently has three major software releases per year, aligned with Salesforce’s product release cycle. Key platform capabilities include:
- Business process engine to model sales and service workflows in a no-code environment (drag-and-drop modeling).
- Industry-specific consoles that incorporate personalized sales/service experiences.
- 360-degree customer view for transactions and experiences.
- External data integration capabilities.
- Industry-specific offer engine with highly configurable options around personalized offers, recommendations, and rate/fee calculations.
- Extended mobile capabilities, even to wearables.
- Clickstream analytics for insights and trend analysis.
Source: Salesforce Sales Cloud at SoftwareReviews, Accessed February 26, 2020
As Vlocity is built on the Salesforce platform, Salesforce should be able to integrate these products into the core more quickly than the previous acquisitions of Mulesoft and Tableau. Coupled with the existing differentiated industry solutions, Salesforce is preparing to extend its lead in the front- and middle-office CRM/customer experience space by offering industries solutions tailored to their unique requirements.
Want to Know More?
The impact of COVID-19, as it became a global pandemic in Q1 of 2020, has affected user sentiment toward software during a growing period of fear, uncertainty, and doubt. To analyze the impact, SoftwareReviews compared Satisfaction (willingness to recommend to a peer), ability to deliver Business Value (fair cost to value), and Likeliness to Renew prior to March 10 and post March 10.
An enterprise application selection or implementation has most likely been heavily impacted by COVID-19. Do not hit the brakes; stopping and restarting projects increases the risk of failure. Slow down or speed up? Which is the right strategy for your organization?
After another impressive quarter, Salesforce announced full-year 2020 results that exceeded expectations. Also announced were Keith Block’s departure, Gavin Patterson’s appointment to president and CEO of Salesforce International, and the acquisition of Vlocity.
SaaS-based customer relationship management company Kustomer announced that it has raised $60 million to improve customer support experience by providing buyers’ transaction history and pages they have viewed and making the information available to company representatives in one interface.
Many companies are adopting GDPR as a global standard for user privacy, but Zoho went a step further at its analyst event held in Cedar Creek, Texas, Jan. 28-30. It promised to remove all third-party trackers from its web and mobile properties, describing ad-driven business models used by Silicon Valley firms such as Google, Facebook, and Twitter as legal but not moral. The Chennai, India-based firm was founded in 1996 and is privately owned.
Salesforce recently announced during Dreamforce 2019 the introduction of Customer 360 Truth. The product aims to stitch together customer information from marketing, sales and customer service applications to create a unified customer ID; whether this will be the silver bullet for managing fragmented customer information remains to be seen.
SugarCRM Rolls Out Fall ’19 Release With Savvy Improvements to Collaboration and Self-Service Capabilities
SugarCRM – a well-established player in the market for CRM platforms – recently rolled out its Fall 2019 release. From a functional perspective, the release does a good job advancing SugarCRM’s capabilities in the areas of self-service, collaboration, and sales automation.
SAP Makes Moves Into the Cloud Contact Center Space With an Eye to Enhance Omnichannel Service Delivery
SAP’s Digital Interconnect Group recently announced the launch of SAP Contact Center 365. In conjunction with its incumbent solutions for customer experience – particularly SAP Service Cloud – the move expands the viability of SAP as an end-to-end technology partner for contact center and customer service enablement.
Salesforce recently announced the introduction of two new vertical-specialized solutions: Consumer Goods Cloud and Manufacturing Cloud. The introduction is a clear signal that Salesforce is pushing ahead with its approach to create industry-specialized versions of its popular Sales, Marketing, and Customer Service solutions.