Can Salesforce Keep Growing

What is Salesforce?

Salesforce is a cloud-based American software and technology company that provides customer relationship management system services along with some enterprise applications that complement the system. These applications are based and focused on customer service, analytics as well as application development. Salesforce claims itself to be the world’s best and number one CRM platform today. And information about probable Salesforce acquisition Google might be planning supports this statement.


However, with other software now introduced in the market today, Salesforce faces a lot of challenges in the times ahead. This is primarily because of the fact that new competitors are bound to give a tough time to Salesforce. Some major factors for Salesforce include SAP, Oracle, Microsoft, IBM, and other similar companies offering cloud-based technological solutions in the market today.

Like Salesforce, all these companies have also fared very well. This is primarily because a lot of firms are now moving towards getting cloud-based solutions. These solutions are the need of the hour now because of changing technologies and frequent introductions of new products and services as well.

However, the main question still remains: “Can Salesforce Keep Growing?”

What can Salesforce Expect?

Even though Salesforce has enjoyed a good growth of about 35%, the future still looks uncertain. To ensure that Salesforce keeps on improving, the team faces loads of strategic options that should be considered.

The two main operating segments for Salesforce are the subscription and support segment as well as professional fees. The subscription comprises subscription fees from the customers who are looking to access the software technologies. Also, customers who want to access software licenses and additional support systems must also look to pay a pre-defined subscription fee to the software. The other segment of the professional fee includes fees for professional services. These services include project management, implementation services, process mapping, and other similar system and technologies.

The total revenue of the cloud-based software company has gone up from $8.3 billion to $13.3 billion in just a matter of two years. This is primarily due to the great performance of their CRM software. It has been estimated that due to their success a further growth can be expected. The revenue can reach up to $17 billion and then all the way up to $20 billion in the next year. The CRM segment alone has seen positive revenue growth as well. From $6.5 billion to $9.5 billion, the revenues have grown in these two years. The revenue of the CRM system alone will increase as well. This value is estimated to be $14.3 billion. The cloud software segment has seen the highest increase in terms of total revenue. This segment increased by $1.5 billion dollars with a further increase of $0.13 billion expected in the next year. The last segment is the consulting and services segment. This has also seen a positive trend. It increased by $0.6 billion in two years.