Salesforce extends beyond CRM with analytics and vertical software focus to increase revenue growth
The future of Salesforce is looking bright. According to Gartner, worldwide CRM software sales increased to $23.2 billion in 2014. Almost half of the sales were SaaS-based, which helped make Salesforce the clear market share leader. This growth can largely be attributed to its strategy to enhance analytics and vertical capabilities for customers. The addition of these new features is fundamental to increasing share and revenue growth as customers seek real-time data and industry-specific cloud applications.
Salesforce is breaking into the analytics market with an aggressive business intelligence push. According to a Research and Markets report, the global Business Intelligence and Analytics Software Market is expected to grow from $17.90 billion in 2014 to $26.78 billion by 2019. Last year, Salesforce launched its Wave Analytics Cloud, which is expected to help it reach its target of $10 billion in annual revenue. Additionally, the company recently appointed Microsoft’s CRM Business Apps Division Head Bob Stutz to head its Analytics Division.
Industry Cloud is another key focus for Salesforce. According to analysts, if Salesforce successfully leverages its strength in the CRM market to expand into industry verticals, it may be able to extend its annual revenue growth by more than 20 percent. CRM is experiencing a natural evolution toward industry cloud, as cloud technologies become more prevalent and accepted. With the addition of Industry Cloud for public sector, health insurance, insurance, and communications industries, Salesforce is able to provide tailored cloud applications that meet each industry's specific needs. Analytics and Industry Cloud are a winning combination for future growth of the company and even more customer success.