Digitization of any business has groomed that particular business. One can observe the same when it comes to day-to-day handling operations 20 years back. Credits for this go to the firms that have developed the ERP & CRM firms. Among them, Salesforce is in the news as it has acquired a firm named Slack at a whopping figure of 27.7 billion USD (2.08 lac Crore). Wow, that’s great. But it becomes important to know why Salesforce took such a step. This Exhibit blog will help you to find out every minute detail and information related to the latest update.
Force that influenced Slack to Become Salesforce
Salesforce announced in the month of December last year that it will acquire Slack for 27.7 billion USD, out of which Slack will receive 26.79 billion USD in cash and the rest as part of Salesforce’s shares. This acquisition finally got completed now in the last few days. This update will surely consolidate both Salesforce and Slack’s position. Many were saying that Slack, which was somewhere losing its importance, has gained its space back again after giving this shock in the slog overs. However, as per some analysts, this deal won’t create a huge tide in the short term as they believe it’s an expensive buy for Salesforce. In addition to this, with this acquisition, Salesforce will gain merely 12 million more customers.
Impact on Rivals
As discussed above, Salesforce has hardly gained 12 million customers of that of Slack; it has to go very far to ensure that bigger giants like Oracle and Microsoft can feel the heat. However, the whopping figure of 27.7 billion $ (2.08 lac Crore) will surely attract some eyes from these competitors. These rivals will also like to see the changes that Salesforce brings soon through their CRM products. Any serious or hi-tech end upgradation can create a dent.
What’s a CRM?
For many, this blog is like a series of bouncers. They might have started complaining that even ODIs and Test Cricket don’t allow more than one or two bouncers in an over. Here’s a basic explanation of CRM. A CRM is like that software that acts as a bridge between industry and a customer like you. Consider that you buy a product from Flipkart. Now, you start getting information related to it from the time of its order. For example, when it is getting packaged, when the courier picks the order, where it has reached, etc. How does it happen? It’s like data getting updated after each process. Flipkart adds every update even when it leaves the warehouse, and accordingly, you get an update about your product.
Final Word
Well, get ready to invest in Salesforce as its stock value is surely going to swell for some time. Start asking your investment manager for their take on this acquisition news.