Menu
Why Salesforce just bought this ex-Facebook CTO’s startup

Why Salesforce just bought this ex-Facebook CTO’s startup

'I am betting they think Word is long in the tooth,' said one analyst

Hard on the heels of its Demandware acquisition in June, Salesforce confirmed on Monday that it's acquiring cloud collaboration software maker Quip.

The purchase price is $582 million, plus the value of Salesforce's previous investments in the company, according to a regulatory filing late last week. According to one estimate, the total value amounts to roughly $750 million.

"We can confirm Salesforce has signed a definitive agreement to acquire Quip," the company said via email, but declined to provide further details.

Founded in 2012, Quip makes cloud-based software designed to make team collaboration easier through capabilities such as chat-enabled documents and spreadsheets.

"As part of Salesforce, we will be able to expand our service more quickly and reach millions of people all over the world," Bret Taylor, Quip's cofounder and CEO, said in a blog post. "And, we’ll be able to extend the Salesforce Customer Success Platform in powerful new ways with our next-generation productivity capabilities. The possibilities of mixing data, content and communication are amazing."

As part of Salesforce, Quip will continue to serve its existing customers, he added.

Taylor was a co-creator of Google Maps and also worked as CTO at Facebook, where he created the "Like" button. Cofounder Kevin Gibbs also hails from Google, where he created Google Suggest. He is now Quip's head of engineering.

The move is "one more indication that Salesforce has 'yuge' plans" for its customer relationship management (CRM) software platform, said Denis Pombriant, managing principal at Beagle Research Group.

"A platform has to be universal and all-encompassing, because its mission is to be a complete one-stop shop for customers," Pombriant said. Competitors Microsoft and Google both have similar products, so Salesforce "had to be able to check off that box."

While Microsoft Word is "fine for shorter documents, it's tough to wrestle with when you want to do more," Pombriant said. "I am betting they think Word is long in the tooth and document creation needs to be reimagined."

Salesforce also went head-to-head with Microsoft recently in bidding wars over LinkedIn. Microsoft ultimately won that contest, but now Salesforce is "dropping solidly into Office territory with a word processor," said Rob Enderle, principal analyst with Enderle Group.

"This would imply a much stronger Office competitor in Salesforce’s future," he said.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Salesforce.com

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments