Salesforce wild growth: "Companies can hardly cope alone"

Large international companies in particular are currently in the process of consolidating their Salesforce applications. This emerges from a study by the Information Services Group (ISG). Many companies ran numerous, isolated Salesforce installations, the analysts confirm. Specialist departments have built up their own instances over the years and have continuously expanded them – usually without involving their own IT department.

Those responsible in the companies now want to counter shadow IT in the Salesforce environment in order not to make the complexity of the IT infrastructures even greater. The architecture of the Salesforce cloud also explains why this could happen. The cloud specialist, which started in 1999 as a provider of customer relationship management solutions (CRM), has expanded its range over the years and is now a platform provider.

For example, Salesforce has been offering a marketplace in its cloud with AppExchange since 2005, in which the provider itself, but also partners and customers, can offer additional solutions. These are functional additions, for example for ERP, HR issues or logistics, integration modules in other business applications or industry solutions. In the meantime, users can find well over 5000 apps in the Salesforce marketplace. In addition, Salesforce offers its own development environment with Users can use it to develop cloud-based apps and add-ons for the Salesforce platform and publish them in the marketplace.

“With the stormy growth of Salesforce applications for years and the variety of today’s offerings, companies can hardly cope on their own today,” says Heiko Henkes, Director & Principal Analyst at ISG. That is why a thriving service market is currently developing around the Salesforce universe. According to the “ISG Provider Lens Salesforce Ecosystem Partners Report Germany 2020”, the German service market for Salesforce is primarily divided into two categories of providers: large system houses and smaller service providers, so-called boutiques, that are completely specialized in Salesforce.

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According to analysts, the market is developing rapidly and is constantly changing. In the past few years, large system integrators had taken over many niche and special providers, thus expanding their portfolio to meet the demand for the ever more diverse Salesforce services. “The large, internationally active companies in particular are turning to Salesforce partners who are also present worldwide,” says ISG analyst Henkes. However, many vendors specialized in Salesforce maintained their market position.