Market Reports
published on Aug 08, 2023
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.