Salesforce acquisition of Tableau – What does it mean?

Salesforce.com has entered into a definite agreement to buy Tableau for a whopping $15.7 billion, becoming the biggest acquisition deal for Salesforce till date. Inorganic growth strategy has become the most suitable approach for software vendors in recent past. The news of this acquisition comes only days after Alphabet’s acquisition of Looker for $2.6 billion. Tableau will run independently post its completion of acquisition by the third quarter of 2019. The synergy of merger between the top analytics vendor and top CRM vendor will create anxieties for customers in the digital experience space. Salesforce will empower its customers to get actionable and visually intuitive insights of their customers. With this acquisition, Salesforce is expected to bring more innovation and become a unicorn in the digital transformation across the globe.

Key takeaways:

  • CRM: Salesforce CRM offers intelligent customer data with its Customer 360 that provides access to every touchpoint of customer including sales, service, marketing, commerce and more. With Salesforce ‘Einstein’ AI for CRM, it is expected to leverage the CRM coupled with analytics and visualization.
  • Analytics: Tableau is known for intuitive analytics serving more than 86,000 organizations. Tableau will now able to understand more customer data. Analytics is all set to remain hot for next decade.
  • Shares: Shares of Tableau pumped up 35% to $169.50 while Salesforce fell 5% to $156.43 in premarket trading. Tableau shareholders will get 1.103 Salesforce shares. Salesforce expects to reach adjusted profit in a range of $2.51 per share to $2.53 per share. However, it is estimated to go up by experts.

Outlook

Salesforce shares are going down possibly due its inorganic approaches and not focusing on organic growth strategies. This acquisition signifies that Salesforce will venture into other products rather than focusing only on CRM. Salesforce is riding on tremendous success on understanding the customer needs and delving deep into analytics comes with a great opportunity to integrate its Einstein AI and SaaS offering. The unified technology offering in digital technology space will take Salesforce to new heights making it a pioneer in SMAC in near future. The interesting part remains as how Salesforce and Tableau manage their portfolio without duplicating offerings, as Tableau would remain as a separate entity.