Salesforce.com will Use Amazon Web Services for Expanding its Presence in Canada and Australia
There were some hints that pointed at Salesforce getting cozy with Amazon Web Services when Marc Benioff, the chief executive of Salesforce went all out to praise Amazon's cloud unit during the recent earnings call. The reason is quite clear now. Salesforce.com announced on Wednesday that it will use Amazon Web Services (A.W.S.) to expand its presence in Canada and Australia. The deal is valued at approximately $400 million. In case if the deal leads to success there could be further augmentation to the transaction.
In public statements, both companies said that Amazon Web Services is now officially the "preferred public cloud infrastructure provider" for Salesforce.
Co-founder and chief executive of Salesforce, Marc Benioff said "For sure, we're talking of billions of dollars in services over the next several years."
It is not the first time Salesforce is using the services of A.W.S. The company already uses it for some of its businesses however what makes this one different is that, this while it is the first time when Salesforce's key applications will be on someone else's computers.
According to Mr. Benioff, the company has evaluated same kind of deals with other tech giants Microsoft and Google, which sell cloud-computing to corporations but A.W.S. is offering a better price. He said that Salesforce will again review the contract after a year.