Microsoft and Salesforce, the customer relationship management software vendor, announced a partnership agreement on November 14th, in which Salesforce will use Microsoft Azure services in some of its businesses. After a feud over a merger a few years ago, the two have never announced any partnership, but there are signs that the two sides appear to be on an ice-breaking journey.
The agreement is expected to link some of Salesforce’s software to Microsoft’s smart team collaboration tool, Microsoft Teams, and use Microsoft Azure in Salesforce’s marketing cloud, which will expand Microsoft CEO Satya Nadella. Existing strategic relationships established in the early years of the presidency. The relationship between the two companies became tense after Microsoft defeated Salesforce to buy LinkedIn in 2016, and Salesforce complained to European regulators about the deal.
Microsoft and Salesforce compete in cloud-based customer management software. Nadella, who used to be in charge of the business at Microsoft, is now putting more effort into upgrading the company’s products in this area. The acquisition of LinkedIn is a key part of Nadella’s plans, and Salesforce’s co-chief executive Marc Benioff is said to be angry about Microsoft’s move. However, both companies are among the biggest manufacturers of cloud-based enterprise applications, and they have room to work together in many areas, and Microsoft hopes to attract customers from big technology companies to use Azure, a platform second only to the AWS cloud services launched by Amazon, the market leader in cloud computing.
In a joint statement on November 14, the two companies said sales and services clouds would be linked to Microsoft Teams as part of the deal.
Salesforce uses different cloud providers in different areas of the business. In fact, the company has been using infrastructure cloud transactions to strengthen partnerships with all parties. In 2017, Google Analytics, which is linked to salesforce, said it would host some of its core business on Google’s cloud platform and listed Google as its “preferred public cloud provider.” The following year, however, the company’s “preferred public cloud provider” became IBM, bundling IBM’s artificial intelligence with Salesforce software. The company has also had business with Amazon AWS.
While cooperation between Microsoft and Salesforce in some areas is deepening, competition in other areas is also intensifying. Salesforce said in June that it intended to buy Tableau Software for $15 billion, which competes with Microsoft in the business intelligence software market.