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Salesforce
American software company

Salesforce, Inc. is an American cloud-based software company headquartered in San Francisco, California. It provides applications focused on sales, customer service, marketing automation, e-commerce, analytics, artificial intelligence, and application development.

Founded by former Oracle executive Marc Benioff in March 1999, Salesforce grew quickly, making its initial public offering in 2004. As of September 2022, Salesforce is the 61st largest company in the world by market cap with a value of nearly US$153 billion. It became the world's largest enterprise applications firm in 2022. Salesforce ranked 491st on the 2023 edition of the Fortune 500, making $31.352 billion in revenues. Since 2020, Salesforce has also been a component of the Dow Jones Industrial Average.

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History

Salesforce was founded on March 8, 1999 by former Oracle executive Marc Benioff, together with Parker Harris, Dave Moellenhoff, and Frank Dominguez as a software-as-a-service (SaaS) company.567 The first prototype of Salesforce was launched in November 1999.8

Two of Salesforce's earliest investors were Larry Ellison, the co-founder and first CEO of Oracle, and Halsey Minor, the founder of CNET.9

Salesforce was severely affected by the dot-com bubble bursting at the beginning of the new millennium, resulting in the company laying off 20% of its workforce. Despite its losses, Salesforce continued strong during the early 2000s. Salesforce also gained notability during this period for its "the end of software" tagline and marketing campaign, and even hired actors to hold up signs with its slogan outside a Siebel Systems conference.10 Salesforce's revenue continued to increase from 2000 to 2003, with 2003's revenue skyrocketing from $5.4 million in the fiscal year 2001 to over $100 million by December 2003.11

In 2003, Salesforce held its first annual Dreamforce conference in San Francisco.12

In June 2004, the company had its initial public offering on the New York Stock Exchange under the stock symbol CRM and raised US$110 million.1314 In 2006, Salesforce launched Idea Exchange, a platform that allows customers to connect with company product managers.15

In 2009, Salesforce passed $1 billion in annual revenue.16 Also, in 2009, the company launched Service Cloud, an application that helps companies manage service conversations about their products and services.17

In 2014, the company released Trailhead, a free online learning platform.18 In October 2014, Salesforce announced the development of its Customer Success Platform.19 In September 2016, Salesforce announced the launch of Einstein, an artificial intelligence platform that supports several of Salesforce's cloud services.2021 It reportedly acquired a 20-year license to be the exclusive business-oriented software company allowed to use Albert Einstein's likeness for $20 million.22

Salesforce launched the Sustainability Cloud (Net Zero Cloud as of 2022), which is used by companies to track progress towards achieving their net zero emissions goals.23

In 2020, Salesforce joined the Dow Jones Industrial Average, replacing energy giant and Standard Oil-descendant ExxonMobil.24 Salesforce's ascension to the Dow Jones was concurrent with that of Amgen and Honeywell.25 Because the Dow Jones factors its components by market price, Salesforce was the largest technology component of the index at its accession.26

Across 2020 and 2021, Salesforce saw some notable leadership changes; in February 2020, co-chief executive officer Keith Block stepped down from his position in the company.27 Marc Benioff remained as chairman and chief executive officer.28 In February 2021, Amy Weaver, previously the chief legal officer, became CFO. Former CFO Mark Hawkins announced that he would be retiring in October.2930 In November 2021, Bret Taylor was named vice chair and co-CEO of the company.31

In December 2020, it was announced that Salesforce would acquire Slack for $27.7 billion, its largest acquisition to date.32 The acquisition closed in July 2021.33 Journalists covering the acquisition emphasized the price Salesforce paid for Slack, which was a 54% premium compared to Slack's market value.34[better source needed]

In April 2022, "Salesforce.com, Inc." changed its legal name to "Salesforce, Inc."35

Acceleration Economy reported that Salesforce had surpassed SAP to become the world's largest enterprise software vendor in August 2022.36

The next month, Salesforce announced a partnership with Meta Platforms. The deal called for Meta's consumer application WhatsApp to integrate Salesforce's Customer 360 platform to allow consumers to communicate with companies directly.37

In November 2022, Salesforce announced it would terminate some employees from its sales team.38 That same month, Salesforce announced its co-CEO and vice chair, Bret Taylor, would be stepping down from his roles at the end of January 2023, with Benioff continuing to run the company and serve as board chair. Within the week, former Tableau CEO Mark Nelson and former Slack CEO Stewart Butterfield also announced their departures. When asked about the departures, Benioff stated, "people come and people go"; Salesforce's stock dropped to a 52-week low after Nelson's resignation.39404142

In January 2023, the company announced a layoff of about 10%, or approximately 8,000 positions. According to Benioff, the company hired too aggressively during the COVID-19 pandemic and the increase in working from home led to the layoff. The company also reduced office space as part of the restructuring plan.43 The same month brought an announcement from activist investor Elliott Management that it would acquire a "big stake" in the company.44

In January 2024, Salesforce announced it was laying off 700 employees (about 1%) of its global staff.45

Services

Salesforce offers several customer relationship management (CRM) services, including: Sales Cloud,46 Service Cloud,47 Marketing Cloud,48 and Commerce Cloud and Platform.49 Additional technologies include Slack.

Other services include app creation, data integration and visualization, and training.50

Salesforce launched a suite of features called Salesforce Foundations in September 2024, bundling connected functionality across department-specific Sales Cloud and Service Cloud products.51

Artificial intelligence

Launched at Dreamforce in 2016, Salesforce Einstein was the company’s first artificial intelligence product, developed from a set of technologies underlying the Salesforce platform.52

In March 2023, Salesforce announced ChatGPT integration in Slack was available to any organization, and the launch of Einstein GPT, a generative AI service.53

In March 2024, Salesforce launched Einstein Copilot: Health Actions, a conversation assistant based on its earlier artificial intelligence platform Einstein. It helps with making appointments, referrals, and gathering patient information.54In July, Salesforce released an AI agent, the Einstein Service Agent, with the ability to perform customer service actions, like enabling product returns or refunds.55

In September, the company deployed Agentforce (succeeding Salesforce Einstein), an agentic AI platform where users can create autonomous agents for customer service assistance, developing marketing campaigns, and coaching salespersons.565758

Salesforce Platform

Salesforce Platform (formerly known as Force.com) is a platform as a service (PaaS) that allows developers to add applications to the main Salesforce.com application.59 These applications are hosted on Salesforce.com infrastructure.60

Force.com applications are built using Apex, a proprietary Java-like programming language61 to generate HTML originally via the "Visualforce" framework. Beginning in 201562 the "Lightning Components" framework has been supported. The Apex compiler was designed by James Spagnola.63

As of 2014, the Force.com platform had 1.5 million registered developers according to Salesforce.64

AppExchange

Launched in 2005, the Salesforce AppExchange is an online app store that allows users to sell third-party applications and consulting services.6566

As of 2021, the exchange has over 5,000 apps listed.6768

Trailhead

Launched in 2014, Trailhead is a free online learning platform with courses focused on Salesforce technologies.697071

Discontinued

Desk.com was a SaaS help desk and customer support product acquired by Salesforce for $50 million in 2011,7273and consolidated with other services into Service Cloud Essentials in March 2018.74

Do.com was a cloud-based task management system for small groups and businesses, introduced in 2011, and discontinued in 2014.757677

Operations

Salesforce is headquartered in San Francisco in the Salesforce Tower.78 Salesforce has 110 offices, including ones in Hong Kong, Israel, London, Paris, Sydney and Tokyo.7980

Standard & Poor's added Salesforce to the S&P 500 Index in September 2008.81 In August 2020, S&P Dow Jones Indices announced that Salesforce would replace ExxonMobil in the Dow Jones Industrial Average.82

Culture

According to Marc Benioff, Salesforce corporate culture is based on the concept of Ohana.83

In 2021, Cynthia Perry, a design research senior manager, resigned, alleging discrimination in the workplace and posting her resignation letter on LinkedIn.84

On September 10, 2021, Benioff tweeted that the company is prepared to help any employee who wishes to move out of the state of Texas, following abortion legislation in Texas, announced on September 1, 2021.85

Finances

For the fiscal year 2022, Salesforce reported revenue of US$26.49 billion, an increase of 25% year-over-year and 24% in constant currency.86 Salesforce ranked 126 on the 2022 Fortune 500 list of the largest United States companies by revenue.87

Year88RevenueUS$millionsNet incomeUS$millionsTotal AssetsUS$millionsPrice per ShareUS$Employees
200517672805.19767
2006310284358.621,304
2007497066511.692,070
2008749181,09013.432,606
20091,077431,48011.373,566
20101,306812,46024.213,969
20111,657643,09132.935,306
20122,267−124,16435.737,785
20133,050−2705,52945.949,800
20144,071−2329,15357.2613,300
20155,374−26310,66570.6616,000
20166,667−4712,76374.5519,000
20178,39218017,58590.2625,000
201810,48012721,010132.2129,000
201913,2821,11030,737155.1035,000
202017,09812655,126222.4049,000
202121,2524,07266,301255.3356,606
202226,4921,44495,209132.5973,541
202331,35220898,84979,390
202434,8574,13699,82372,682
202537,8956,197102,92876,453

IT infrastructure

In 2008, Salesforce migrated from Sun Fire E25K servers with SPARC processors running Solaris, to Dell servers with AMD processors, running Linux.89

In 2012, Salesforce announced plans to build a data center in the UK to handle European citizens' personal data.90 The center opened in 2014.91

In 2013, Salesforce and Oracle announced a nine-year partnership focusing on applications, platforms, and infrastructure.92

In 2016, Salesforce announced that it will use Amazon Web Services hosting for countries with restrictive data residency requirements and where no Salesforce data centers are operating.93

Acquisitions

2006–2015

In 2006, Salesforce acquired Sendia, a mobile web service firm, for $15 million94 and Kieden, an online advertising company.95 In 2007, Koral, a content management service, was acquired.96 In 2008, Salesforce acquired Instranet for $31.5 million.97 In 2010, Salesforce acquired multiple companies, including Jigsaw, a cloud-based data service provider, for $142 million,98 Heroku, a Ruby application platform-as-a-service, for $212 million,99 and Activa Live Chat, a live chat software provider.100 In 2011, Salesforce acquired Dimdim, a web conferencing platform, for $31 million,101 Radian6, a social media tracking company, for $340 million,102 and Rypple, a performance management software company.103 Rypple became known as Work.com in 2012.104 In 2012, Salesforce acquired Buddy Media, a social media marketer, for $689 million,105 and GoInstant, a browser collaboration startup, for $70 million.106

In 2013, Salesforce acquired ExactTarget, an email marketer, for $2.5 billion.107 In 2014, Salesforce acquired RelateIQ, a data company, for $390 million.108 In 2015, Salesforce acquired multiple companies for undisclosed sums, including Toopher, a mobile authentication company,109 Tempo, an AI calendar app,110 and MinHash, an AI platform.111 The company also acquired SteelBrick, a software company, for $360 million.112

2016–present

In 2016, Salesforce acquired Demandware, a cloud-based provider of e-commerce services, for $2.8 billion113114 and Quip, a word processing app, for $750 million.115 In 2017, the company acquired Sequence, a user experience design agency.116 In 2018, Salesforce acquired several companies, including MuleSoft, a cloud service company, for $6.5 billion,117118 as well as Rebel, an email services provider,119 and Datorama, an AI marketing platform, for undisclosed amounts.120

In 2019, Salesforce completed its acquisition of analytics software company Tableau for $15.7 billion121 in 2019, and Slack Technologies for $27.7 billion in 2021.122 Salesforce also made smaller acquisitions throughout 2019, 2020, and 2021, which included ClickSoftware for $1.35 billion,123 consulting firm Acumen Solutions for $570 million,124 CRM firm Vlocity for $1.33 billion,125 privacy compliance startup Phennecs for $16.5 million,126 and robotic process automation firm Servicetrace for an undisclosed amount.127

Salesforce's most recent acquisition was Slack-bot maker Troops.ai, announced in May 2022, and expected to close in 2023.128

In September 2023, Salesforce acquired Airkit.ai, a creator of AI-powered customer service applications and experiences.129 In December 2023, Salesforce announced it would acquire Spiff, an automated commission management platform for an undisclosed amount.130

In April 2024, the Wall Street Journal reported that Salesforce was in advanced talks to acquire Informatica at a price below its $11 billion market capitalization at the time.131 The deal was later reported to have been abandoned.132

In September 2024, Salesforce acquired data management firm Own for $1.9 billion, giving Own's about 1000 employees the deadline of January 31, 2025 in those positions.133 Salesforce has also acquired PredictSpring and Tenyx in 2024.134

Controversies

Phishing attack

In November 2007, a phishing attack compromised contact information on a number of Salesforce customers. Some customers then received phishing emails that appeared to be invoices from Salesforce.135136 Salesforce stated that "a phisher tricked someone into disclosing a password, but this intrusion did not stem from a security flaw in [the salesforce.com] application or database."137

‘Meatpistol’ presenters fired at Def Con

In 2017, at DEF CON, two security engineers were fired after giving a presentation on an internal project called MEATPISTOL.138 The presenters were sent a message 30 minutes prior to the presentation telling them not to go on stage, but the message wasn't seen until after they finished.139140 The MEATPISTOL tool was anticipated to be released as open-source at the time of the presentation, but Salesforce did not release the code to developers or the public during the conference.141 The terminated employees called on the company to open-source the software after being dismissed.142

RAICES donation refusal

The not-for-profit organization Refugee and Immigrant Center for Education and Legal Services (RAICES) rejected a US$250,000 donation from Salesforce because the company has contracts with U.S. Customs and Border Protection.143

2018 taxes

In December 2019, the Institute on Taxation and Economic Policy found that Salesforce was one of 91 companies who "paid an effective federal tax rate of 0% or less" in 2018, as a result of the Tax Cuts and Jobs Act of 2017. Their findings were published in a report based on the 379 Fortune 500 companies that declared a profit in 2018.144

Sex-trafficking lawsuit

In March 2019, Salesforce faced a lawsuit by 50 anonymous women claiming to be victims and survivors of sex trafficking, abuse, and rape, alleging the company profited from and helped build technology that facilitated sex trafficking on the now-defunct Backpage.com.145 In March 2021, a judge granted partial dismissal of the case, dismissing charges of negligence and conspiracy, but allowed the case to proceed regarding charges of sex trafficking.146 In March 2024, the case was dismissed without prejudice.147 In September 2024, the US Court of Appeals for the Ninth Circuit denied a request to reverse the dismissal.148

Disability discrimination lawsuit in Japan

In July 2021, Salesforce Japan faced a discrimination lawsuit from a former employee, according to Japanese legal media.149 The firm declined to comment on the suit to the media. The ex-employee, who has Autism Spectrum Disorder and ADHD, claimed she was discriminated against because of her disability and terminated in the firm's Japan web marketing team. The suit alleged that the anonymous woman, as an employee at Salesforce Japan from 2018 to 2020, faced hate speech, microaggressions and rejection of reasonable accommodation from the manager. She alleged that her attempts to resolve the problem were met with pressure from HR and job coach. The lawsuit is still continuing in Tokyo district court.150151

In Japan, the legal disability quota for private companies is 2.3%. But Salesforce Japan has not met the quota and pay levy from 2009 to 2021 except 2017. In 2020 the firm did not report the number of disabled employees to Japanese labor official. Depending on the result of lawsuit, it is undeniable that the firm may face a risk of negative impact to disability hiring such as performance improvement plan on the disability employment act or disclosure as social punishment from the labor official.152

Employee layoffs/Matthew McConaughey's salary

In January 2023, Salesforce reported that 8,000 employees had been laid off as a result of over-hiring during the Covid lockdown and a global economic downturn. In March 2023, the Wall Street Journal reported that actor Matthew McConaughey was paid 10 million dollars yearly for his role as a "creative advisor and TV pitchman". American musician will.i.am was also cited to be on the company's payroll due to his "strong understanding of technology".153154

Wrongful Termination Lawsuit

In September 2024, former Salesforce Senior Director Dina Zelikson filed a lawsuit against the company in San Francisco Superior Court, alleging wrongful termination, discrimination, and retaliation during a medical leave.155

Salesforce Ventures

In 2009, Salesforce began investing in startups.156 These investments became Salesforce Ventures, headed by John Somorjai157158 In September 2014, SFV set up Salesforce1 Fund, aimed at start-ups creating applications primarily for mobile phones.159 In December 2018, Salesforce Ventures announced the launch of the Japan Trailblazer Fund, focused on Japanese startups.160

In August 2018, Salesforce Ventures reported investments totaling over $1 billion in 275 companies, including CloudCraze (e-commerce),161 Figure Eight (artificial intelligence),162 Forter (online fraud prevention),163 and FinancialForce (automation software).164 In 2019, SFV's five largest investments—Domo (data-visualization software), SurveyMonkey (online survey software), Twilio (cloud-communication), Dropbox (cloud storage), and DocuSign (secure e-signature company)—accounted for nearly half of its portfolio.165 In 2021, Salesforce announced that its investments had resulted in $2.17 Billion annual gain.166 In June 2023 Salesforce increased the size of its Generative AI Fund for startups from $250 million to $500 million,167 and in September 2024 to $1 billion.168

Office locations

Notes

Wikimedia Commons has media related to Salesforce.

References

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