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Google and Salesforce.com reveal partnership

By Barney Beal, News Director

05 Jun 2007 | SearchCRM.com

Salesforce.com and Google Inc. revealed the details of their much-anticipated partnership today, and it fell far short of many predictions.

When the Wall Street Journal reported two weeks ago that Mountain View-based

Under the partnership, Salesforce.com will act as the official distribution channel for Google AdWords. The two organizations have also jointly developed Salesforce Group Edition for Google AdWords, which replaces Salesforce.com's Team Edition, targeted at small businesses. With the new Salesforce.com application, customers will be able to track their Google advertising spend through to leads and prospects in Salesforce.com's CRM application.

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"I know how the hype can far surpass the realities," said Jeff Kaplan, managing director with Wellesley, Mass.-based THINKstrategies. "I think this is a good extension of their existing relationship. It makes a lot of sense for both parties. Anybody who's disappointed probably had unreal expectations."

By targeting the lower end of the small business market, the partnership brings Google new advertisers and some credibility to expand its applications from consumers into the business market. Salesforce.com, meanwhile, gets additional marketing muscle and a new set of features. Small businesses, particularly the more technology-focused, are beginning to adopt Google applications, like its online word processing, spreadsheet and email applications, but are augmenting their use of Microsoft Office, not replacing it, according to Kaplan.

"We've seen a lot of the suggestions," said Bruce Francis, vice president of corporate strategy with Salesforce.com. "No we're not forming a joint colony on Jupiter. No we're not introducing a new species but I think this is outrageously exciting for on-demand business applications."

The two organizations are a match, thanks to their commitment to delivering their technology model (running their products over the Internet); their business model (pay for what you use); and their philanthropy model, Francis said. Google's philanthropic efforts were modeled closely after Salesforce.com's after its founders heard a speech by Salesforce.com CEO Marc Benioff in 2004, Francis said.

Google had an existing relationship with Salesforce.com which entailed integrating Google Maps with its CRM application to help salespeople map out their accounts, Salesforce.com support for Google OneBox, a tool that allows users to search Salesforce.com information within the firewall and the listing of Google applications on Salesforce.com's AppExchange. In fact, there was already an integrated product, called Salesforce.com for Google AdWords, based on Salesforce.com's

Similarly, VolunteerMatch, a 25-person San Francisco-based non-profit that helps other non-profit organizations find volunteers relies on Google for most of the leads. The organization has about 50 large business partners who use the network to support their volunteering initiatives.

"We couldn't do our business without Salesforce and Google," said Greg Baldwin, president. "This relationship will only further that."

The Salesforce Group Edition featuring Google AdWords is available today for a 30-day promotional price featuring five users and a $50 AdWords credit for $600 per year. The list price is $1,200 per year.