Should Microsoft be worried that Salesforce has just acquired Slack? In my opinion – YES, in fact it should be so worried that it must double its investments in Power BI.
Salesforce paid $16B last year for Tableau in a stock transaction. This year it paid $28B (somewhere around half in cash) for Slack, creating a very strong trifecta of a business offering:
- Collaboration tools
Microsoft of course has its own trifecta of Dynamics, Power BI and Teams, however, in my video below I argue that its offering suffers from not having the gravity and stickiness that Salesforce offering will have. Salesforce has advantage with respect to its Applications portfolio as it has a much greater mind share and market share for the large enterprise customers and this advantage will generate a lot of conversations that will pull through Tableau and Slack offerings into the mix. Salesforce also has a formidable sales organization that is highly capable to have conversation with a business audience, which is vastly different from the technology/platform centric conversations the Microsoft’s sales organization tends to generate.
So, if Microsoft were to create a comparable momentum with respect to conversations with business vs IT, it absolutely has to double down on investing more in Power BI to make the product vastly superior to any other competing Business Intelligence offering to somewhat offset the advantages that Salesforce has with its value proposition in the application space.
Please watch the video below for more details…