Welcome to the Cloud Wars Minute — your daily news and commentary show, hosted by Cloud Wars Founder Bob Evans. Each episode provides insights and perspectives around the “reimagination machine” that is the Cloud.
In today’s Cloud Wars Minute, Bob outlines what he sees as Salesforce co-CEO Marc Benioff’s 10-point plan, intended to grow Salesforce’s annualized revenue run rate of $31 billion to $50 billion in just over three years.
Highlights
00:28 — Bob describes Salesforce’s “audacious growth goal,” which aims to increase the company’s revenue by almost 50% over a 40-month period. The current growth rate for Salesforce has been around 21%-22% per year
01:11 — Salesforce utilizes Genie, a new real-time data lake that supports the company’s Customer360 platform and is the company’s “New Big Thing.” Bob says Salesforce had better keep “rubbing that lamp” because the company is betting “a huge amount of their differentiation on what Genie is able to deliver.”
01:27 — Customer360 software represents a lot of the company’s products. Salesforce uses this instead of other point solutions because it wants to crush the smaller competition, as well as grow its revenue.
01:44 — Salesforce is trying to “push more of these clouds” onto customers. For Salesforce, selling four clouds to a customer can equate to 24x the ARR.
02:14 — Salesforce has core customers, 20% of whom are driving 85% of Salesforce’s annual recurring revenue.
02:38 — On the industry side, Salesforce has an incredible pipeline of new customers coming in per year. 45% of Salesforce customers have never used the service before.
02:58 — Globally, Salesforce expects ample opportunities. In North America, Salesforce’s four-year compounded annual growth rate is 21%; outside of North America, its 27%.
03:11 — Salesforce is looking into solution selling and being able to sell across the company, putting together different mixes and blends of its solutions along with some industry capabilities.
03:32 — Salesforce’s powerful and growing relationship with AWS seems to be paying off in different ways.
03:39 — Bob says: “You can never discount Mark Benioff’s grand vision. The guy’s been doing it for 23 years in some remarkable ways.” He believes Benioff will surely achieve Salesforce’s growth goal in just over three years.
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