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Salesforce announces AWS as preferred cloud provider

1/06/2016 by Sharon Shahzad


One of the world’s leaders in customer relationship management (CRM) solutions, Salesforce, has revealed that Amazon Web Services (AWS) is to be its preferred provider of public cloud infrastructure. Though already using AWS for a number of its cloud-based operations, Salesforce’s new deal will last for the coming four years and will see the provider responsible for hosting more than ever.

Current estimates value the deal at around $400 million. Salesforce has filed documents with the US Securities and Exchange Commission, and though it only referred to a “third-party provider”, sources near to both the major companies have confirmed the agreement with AWS. Meanwhile, according to two statements issued by both Salesforce and AWS, the deal comes as the CRM provider conducts “planned international infrastructure expansion”, potentially using AWS’s 33 “Availability Zones”, which include Korea, Singapore, Ireland, China, Brazil and Germany.

As part of the new deal, Salesforce will be expanding its use of AWS for the first time. The result will be that some of the company’s core products, including Service Cloud, Sales Cloud and App Cloud, will be hosted on AWS’s infrastructure. Until now, the hosting provider has only been used to operate smaller-scale solutions such as the SalesforceIQ CRM software and app development platform, Heroku. It was also recently announced that Salesforce’s latest service, Salesforce IoT Cloud, will also be hosted by AWS. Meanwhile, Amazon is now using several solutions from Salesforce for its own customer management operations, having signed an agreement during the first three months of the year.

Salesforce Vice Chairman, President and Chief Operations Officer Keith Block said: “This is a huge expansion of our relationship with them and we plan to use more Amazon services in the future.” It was also revealed that though the company still intends on developing its own data centres, services will be brought online quicker by utilising AWS, especially when entering specific international markets.

Salesforce Chairman and Chief Executive Marc Benioff spoke during the company’s earnings call last week about the latest agreement. He said: “[Amazon CEO] Jeff Bezos and I have a great meeting of the minds of the future of the cloud. I think that it’s been a great relationship and partnership for us. We want to continue to grow that and expand that strategically. We are definitely exploring ways that we can use AWS more aggressively with Salesforce.”



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