Cloud Computing: What’s really behind Salesforce acquisition rumors

Grazed from NetworkWorld. Author: Brandon Butler.

Since a report surfaced in Bloomberg more than a week ago, it’s been the talk of the tech market: Will Salesforce.com be bought out? Perhaps a more intriguing question though is: Should Salesforce sell out? A sale of the $46 billion market-cap company would be one of the largest tech acquisitions in history and could dramatically help a potential acquirer gain a significant foothold in the fast-growing SaaS cloud computing market.

As the company has grown, it’s stuck with its message that business should ditch licensed software they run themselves. That’s an unrealistic proposition for most companies though, a new report by technology researchers finds. That fundamental disconnect between Salesforce’s business model and how enterprises are using the company’s products is one of the biggest reasons Salesforce.com may be sold…

“Now that it’s clear most customers will be hybrid, and not purely public, Salesforce becomes more valuable as one choice in a broader toolset than as an independent pure public cloud vendor,” the report by New Hampshire-based Technology Business Research finds…

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