Salesforce to add digital commerce capabilities with US$2.8bn Demandware acquisition

The purchase will allow Salesforce to offer Commerce Cloud and get into e-commerce

Salesforce.com is moving beyond CRM and into e-commerce with the acquisition of cloud service provider Demandware.

It will use the purchase to kick-start a new field of business, the Salesforce Commerce Cloud, it said Wednesday.

The company already has its Sales Cloud, Service Cloud, Marketing Cloud, Analytics Cloud.

By rebranding Demandware Commerce Cloud as its own, Salesforce will be able to combine e-commerce, order management, point-of-sale, store operations and predictive intelligence into its own platform.

Commerce Cloud will allow Salesforce customers to connect with their own clients in new ways, the company said, while Demandware customers will gain access to sales, marketing and analytics functions from Salesforce. Demandware customers include L’Oreal and U.K. retail chain Marks & Spencer.

"There are so many ways it accelerates our mission to transform retail," Demandware CEO Tom Ebling said in a conference call to discuss the deal.

Being part of Salesforce will add to Demandware's credibility when approaching large accounts, he said.

It will also help the company expand to new countries. "We've just got started in places like Japan and Italy but there are many other untapped geographies for us," he said.

A third area where it will benefit is omnichannel marketing, helping retailers engage customers everywhere. "The combination of CRM capabilities, knowledge of the customer, with the commerce engine will be a way to accelerate that capability," he said.

Salesforce's Chief Product Officer Alex Dayon said the deal will increase its customers' insight into their business.

"Our customers' information systems are going to be powered by data. You need a complete view of your customers. Having commerce as part of the CRM platform is important," he said during the same conference call.

He hammered home the need for more data in response to a question about Salesforce's ad targeting capabilities.

"For us it's all about the data, whether you use your own data, your own targeting, or whether you connect to companies like Google or Facebook," he said.

The companies expect to close the deal, worth around US$2.8 billion net of cash acquired, before August, subject to customary closing conditions.

Join the newsletter!

Error: Please check your email address.
Show Comments

Blog Posts

Innovations in retail will bring creative and technology closer than ever

While approaching a customer in a shop and asking what you can help them with is Retail 101, how many of us actually enjoy being approached? Generally, you have to give the forced, fake smile and say, “Just browsing, thanks,” while screaming on the inside, “just leave me alone!” Maybe it’s just me?

Jason Dooris

CEO and founder, Atomic 212

There’s a brand in my digital soup

Not a day passes by in the life of business executives where digital innovation or the prospect of disruption is not front of mind. This in turn, drives an unrelenting flow of questioning, discussion and strategy papers.

Jean-Luc Ambrosi

Author, marketer

Can marketers trust agencies again?

Unless you’ve been marketing under a rock, you’ll probably have questioned whether your media agencies are offering you transparency.

Nic Halley

Founder and managing director, Mindbox

Nice post Brad! very useful information. The retail stores are really mean for every brand I am agree with you. Now Online Service Market...

Srialto

The rise of online retail marketplaces and what they mean for brands

Read more

Minor correct Nadia, just wanted to clarify that the "Marketo consultants" that did this work, were actually Hoosh consultants

Fab Capodicasa

What it's taking for Edible Blooms to grow a stronger personalisation strategy

Read more

Im not surprise though, been in the industry for couple of years and I feel and see it with my tow eyes how eCommerce platforms innovated...

Jason Smith

Australia Post earmarks $20m for Australian ecommerce innovation investment

Read more

For marketers that are "going Agile" I recommend using Ravetree. It's a really powerful suite of tools for Agile project management, reso...

Janice Morgan

7 ways to run your marketing department like a software startup

Read more

Over the years very part of our lives has become technological. That’s why I am not surprised to see that Australian home loans are going...

GreatDayTo

Why Aussie Home Loans is embracing digital transformation

Read more

Latest Podcast

More podcasts

Sign in