Salesforce has confirmed that it has acquired Salesforce.org, Salesforce software reseller, in a deal costing $300 million.
The company stated that it plans to extend its current business model by continuing to provide free and highly discounted software to non-profits and educational institutions around the world, which offers greater access to Salesforce products.
Rob Acker, CEO of Salesforce.org, will continue to run the unit as an industry vertical focused on non-profits and education, akin to Salesforce’s marketing cloud vertical and sales cloud vertical.
Also Read: Three Strategies for Greater Training Opportunities to Retain IT Talent
By appending Salesforce.org into Salesforce, the company acquires non-profit customers as part of the new vertical, and over time, expand their margins.
The step helps Salesforce to create the efficiencies in their business needs, such as increasing revenue margins, which in turn could increase costs for non-profits. Non-profit organizations consider the implications of price increases and prepare their teams for the potential challenges to come.
The new business will also create a new vertical-focused cloud application for non-profits, education and philanthropy organizations. “Combining Salesforce and Salesforce.org into a new non-profit and education vertical reinforces the strength of Salesforce’s philanthropic model,” the company said in a press release.
Check Out The New Enterprisetalk Podcast. For more such updates follow us on Google News Enterprisetalk News.
Suprotik Sinha is the Global News Correspondent with OnDot Media. He writes about technologies and trending news in the global enterprise space. An animal lover, Suprotik, is a postgraduate from Symbiosis Institute of Mass Communication (SIMC) Pune. He carries two years of experience in mainstream broadcast media where he worked as a reporter with Ibn7 and Zee Media in Mumbai.
