It’s news that many of us saw coming: Salesforce is in the process of acquiring ClickSoftware Technologies, Inc. in a deal valued at $1.35B in cash and stock. This comes on the heels of Salesforce’s largest acquisition ever, Tableau Software, in a deal valued at roughly $15B.
The combination of Salesforce and ClickSoftware will create a newly combined force of strategic vision and strength in execution–news that is likely putting competitors like Microsoft, SAP, and Oracle on high alert.
Why this acquisition made sense
The reason many of us saw this coming goes back to 2016, when Salesforce first took the leap into the field service market. They didn’t make this jump in a vacuum. Under the hood, Salesforce licensed a large majority of Field Service Lightning functionality built on the Salesforce platform from ClickSoftware in order to get to market faster. This enabled Salesforce to effectively extend their Service Cloud offering into the adjacent process area of Field Service, such as Work Orders, Skills, Scheduling, and Dispatch Console. The strategy proved successful and resulted in a fast uptick of customers signing up for this new functionality over the last few years.
With the success of Salesforce Field Service Lightning, and growing interest in their customer base, the use cases and process areas started to grow in complexity. So, Salesforce was again at a crossroad. Should they: A) build out the additional functionality internally or B) buy it? The decision for Salesforce to acquire ClickSoftware allows them to completely round out the feature/functionality set. Expect to see familiar core functionality from ClickSoftware, such as Demand Forecasting and Contractor Management, as key capabilities move into Field Service Lightning in the near term.
With this acquisition, Salesforce’s Service Cloud product (of which Field Service Lightning is part of) is expected to exceed $1B in revenue. Thanks to record growth, indicators are showing that this could be the year that Service Cloud overtakes Sales Cloud as Salesforce’s largest revenue driver cloud.
What Salesforce’s customers and prospects can expect in the coming months
Attendees of Dreamforce, Salesforce’s annual conference, can expect a big marketing splash. As Salesforce continues to move to an industry vertical focus, expect to see a move for tight alignment and messaging in the manufacturing industry vertical. Field service is a key function in the end-to-end process, especially with the drive for manufacturing organizations to better understand and serve the end customer in the B2B2C marketplace. Lastly, expect to see product announcements around solutions on the Salesforce Platform that tie together IoT with the Salesforce Service and Field Service modules. If you’re interested in learning more about how this acquisition could impact your business, please contact us and learn more about how field service can elevate your customer experience!
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