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Salesforce Services - Market Update

Market Reports

by Dominique Raviart

published on Aug 08, 2023

Access to this report is restricted to logged in clients with access. Login to get full access

Report Overview:

This report provides an update to NelsonHall’s assessment of the Salesforce services market in the light of recent market developments.

Who is this Report for:

NelsonHall’s market update for Salesforce services is designed for:

  • Sourcing managers investigating sourcing developments within IT services
  • Vendor marketing, sales, and business managers developing strategies to target service opportunities within IT services and digital/cloud/SaaS
  • Financial analysts and investors specializing in the IT services sector.

Scope of this Report:

This Market Update report updates NelsonHall's assessment of Salesforce services market, including:

  • A recap of the key points from our last market assessment
  • A summary of Salesforce’s strategic shift
  • A brief analysis of how the Salesforce industry must respond to Salesforce’s shift.

Key Findings & Highlights:

This report provides an update to NelsonHall’s assessment of the Salesforce services market in the light of Salesforce’s strategic shift from revenue growth to profitability.

Salesforce has entered a period of a revenue growth slowdown. Under pressure from activist activity, the company now favors profitability improvement over revenue growth. Salesforce is making structural changes that will impact its expansion: it is reducing costs and its office footprint, laying off 8k employees. The company is also significantly decreasing its R&D costs, from 17% in FY22 to 12% in Q1 FY24. Salesforce now wants to be selective in its product investments.

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