Salesforce Agrees to Buy Demandware for $2.8B

The transcript discusses Salesforce's acquisition of Demandware, highlighting its strategic importance in expanding Salesforce's cloud offerings. The acquisition is expected to enhance Salesforce's sales, marketing, and service platforms. Despite some integration risks and high financial multiples, the deal is seen as a strategic fit with no overlapping functionalities. The discussion also touches on market trends, including increased software acquisitions and the impact of a closed IPO window, leading to consolidation in the tech industry.

What is the projected run rate for Demandware after its acquisition by Salesforce?

• 500 million

• 700 million

• 300 million

• 170 million

What is a key risk mentioned in the acquisition of Demandware?

• High employee turnover

• Lack of customer base

• Integration risks

• Overlapping functionality

How does Salesforce plan to leverage Demandware's capabilities?

• By selling it to a third party

• By shutting it down

• By operating it as a standalone entity

• By integrating it with their existing cloud platforms

What trend is observed in the software industry according to the transcript?

• Decrease in mergers and acquisitions

• Decline in software development

• Increase in IPOs

• Consolidation and platform chasing

Why might Salesforce have felt urgency in acquiring Demandware?

• To prevent a competitor from acquiring it

• To enter a new market

• To diversify their product offerings

• To reduce operational costs