Salesforce Partners with Amazon Web Services (AWS) to Accelerate Global
Professional cloud-based software specialist Salesforce has just chosen Amazon Web Services (AWS) as its “preferred” provider for hosting its main services. Among these, Sales Cloud, Service Cloud, Community Cloud or Analytics Cloud. A partnership that is part of Salesforce’s desire to rapidly deploy its offers in several international markets by relying on the capacities of the world leader in cloud infrastructures. The amount of the transaction was not officially communicated, but the Wall Street Journal refers to a $ 400 million four-year deal.
The two companies had worked together in the past, with several Salesforce services – like Heroku or Salesforce IQ – already running on Amazon Web Services (AWS). “AWS has sophisticated and robust capabilities (…) to support the needs of Salesforce’s growing international customer base. AWS will accelerate this capacity to bring new infrastructure online more quickly and efficiently, ”the company said in a statement.
The American publisher wants to be able to respond to demand. In the first quarter of its lagged fiscal year 2017, Salesforce reported revenue of $ 1.92 billion, up 27% year-on-year. And the company said at the same time to expect a turnover of more than 8.16 billion dollars for the whole of the current fiscal year, an increase of 22% to 23%.
Strong growth in AWS
At the same time, this contract always strengthens Amazon a little more. When Amazon’s latest financial results were released in April, the AWS branch posted revenue of $ 2.56 billion in the first quarter of 2016, up more than 63% year-on-year. In fact, a little earlier, in a letter to investors, Jeff Bezos explained that he expected his cloud division to exceed $ 10 billion in annual revenue, almost ten years after its launch.
Still, Amazon faces strong competition in this coveted market. While AWS has a significantly higher market share than its competitors – 31% in Q4 205, according to a study of Synergy Research Group – Microsoft and Google, which are the second and fourth largest players in the sector, respectively, both posted stronger growth over the same period.