Smash Notes

Back to Inside Salesforce’s $100 Billion M&A Playbook | John Somorjai, with John Somorjai & Alex Immerman.

How Do Acquisitions Put a Startup in Front of Salesforce's Sales Force?

Alex Immerman says an acquisition can put a startup in front of Salesforce's 15,000 sales reps, and that in the case of Listen Labs a handful of those reps can open the product to the whole sales team. John Somorjai says building that channel alone takes a very long time. A company has to hire the reps, ramp them, enable them, and get them productive, across small business, medium-sized business, and enterprises, and it has to do that globally. He calls that a heavy task.

Salesforce also keeps a partner path. Somorjai says the company works with probably more than 8,000 ISV partners, and Salesforce Ventures sometimes invests in those partners, so a customer can buy a partner product or a Salesforce product. A founder then decides whether this is the right time to sell and plug the technology into a company that already has the channel, or to keep going alone, keep raising, and dilute further. He sets many years of that work against getting the technology into customers' hands as widely and as quickly as possible.

Transcript

Inside Salesforce’s $100 Billion M&A Playbook | John Somorjai ·

a16z

More from this episode

  1. How Does Salesforce Decide Which Companies to Buy?John Somorjai says Salesforce follows an internal framework and stays pretty disciplined about following it. The framework looks at three elements.
  2. Why Is Salesforce Moving From Seats to Outcome-based Pricing?John Somorjai says the technology industry is moving toward outcome-based pricing, where a customer pays for resolutions instead of paying for a seat.
  3. What Makes a Startup Worth Acquiring at Salesforce?John Somorjai says a startup is worth acquiring when Salesforce's product teams cannot build the next three years of the roadmap with the people they have…
  4. Why Is Salesforce Ventures Investing in Robotics?John Somorjai says Salesforce Ventures is investing in robotics because dexterity and mobility are improving, and he expects a huge future for that industry.
  5. Why Does John Somorjai Say Many Venture Valuations Will Not Last?John Somorjai says many venture valuations will not last because they are way too high, the set of buyers is small, and the companies will not be able to grow…
  6. What Can Kill a Salesforce Deal?John Somorjai says security is the one function that can hold up the red flag and kill a deal.
  7. What Happened When a Salesforce Security Test Reached the CEO's Laptop?John Somorjai says one Salesforce penetration test reached all of a company's source code, got into the CEO's laptop, and pulled information about employees…

People

More answers like this

Related episodes

Plays from this note through the rest of the episode.

Weekly highlights

One letter a week.

The notes worth hearing, with the minute they were said.