After a slightly tumultuous 2022, Salesforce may have established some breathing room by posting better-than-estimated earnings and guidance for its fiscal fourth quarter, ending January 31, 2023. However, despite 14% year-over-year revenue growth, the company might face another unexpected negative — losing valued customers, such as Veeva Systems. As more companies focus on profits above development, Veeva — which built its core software on top of Salesforce’s platform — is poised to go on its own in 2025. How likely is it that other connected companies follow suit?
Veeva’s founder and Chief Executive Officer, Peter Gassner, oversaw the Salesforce platform before launching his life sciences cloud computing venture, adding intrigue to the separation. The two companies have an agreement that requires Veeva to pay for its customers’ use of the Salesforce platform, and in return Salesforce will stay out of Veeva’s niche market. But with the end of the long partnership, there is more opportunity for the startup to grow even further.
Another company entangled with Salesforce is Ncino; in 2021, CEO Pierre Naudé claimed his company was the second-largest company built on Salesforce — behind Veeva. It has a more tenuous relationship with the CRM giant. If it were to exit, it could signal an ill omen for Salesforce and other tech giants of every industry.