Could Google Buy SalesForce.Com?
Phil Wainright has speculated on the delicious possibility of what could happen if Google bought SalelsForce.Com and used the merger to enter the business applications market.
This is one of those rumors that is so delicious it's hard to pass up, even though there are reasons it would be hard to pull off:
- It would be a high ticket merger and Google has just done that -- probably at least $10 billion. Of course, with Google's huge market cap, anything is possible.
- Mark Benioff, SalesForce.com's colorful and forceful founder and CEO might not like the idea of working for someone else. Phil suggests that he might accept if he was offered head of a well-funded business applications software division for Google (what he'd like SalesForce.com to grow into anyway) and the chance of running Google itself, in the long run.
- This would be a big step for Google, who is just figuring out how to provide business applications and support. However, SalelsForce.Com has lots of experience here, so they might actually be able to help.
The question, of course, is what would happen in the overall market. Let's speculate:
- Software as a Service (SaaS) would immediately be enormously more important. Companies like SAP who thought they had plenty of time to get to a full SaaS model may find that they are much more pressured. Companies like Microsoft will need to rethink exactly how their hybrid (desktop plus Internet) model competes.
- Google could help business applications penetrate lower in the SMB and SOHO markets using an advertising-supported model.
- Developers might feel compelled to develop for the Google/AppExchange platform because of its reach and economic strength. This could overcome Microsoft's very strong hold on developers for the SMB market.
- Enterprise customers might feel more comfortable with a much bigger company behind SalesForce.Com's applications and infrastructure, again expanding its reach.
It's fun to speculate. Just don't assume anything will happen.
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