Salesforce (CRM) has dismissed rumors of a big cloud deal with tech titans like Microsoft (MSFT), Alphabet’s (GOOGL) Google, and Oracle (ORCL), calling them unfounded. The company clarified its stance after reports claimed Salesforce was working on a cloud deal worth over $1 billion. Meanwhile, the company stated that instead of expanding to a new provider, it has chosen to strengthen its partnership with Google. CRM stock is down nearly 5% year-to-date, largely impacted by the COO’s departure earlier this month.
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Salesforce Stays Committed to Google
Salesforce’s CEO, Marc Benioff, stated that the company is strengthening its partnership with Google rather than adding a fourth cloud provider. Currently, Salesforce uses Amazon (AMZN), Alibaba (BABA), and its in-house data centers for its computing services.
As a result, Salesforce will continue building its future offerings like Customer 360, Hyperforce, Agentforce, and Data Cloud on the Google platform.
Additionally, this decision shows its dedication to working closely with trusted allies in a highly competitive tech industry. This also implies that Salesforce is taking a clear strategic approach as AI competition intensifies among tech giants. Benioff’s statement isn’t just about dismissing rumors—it underscores the company’s commitment to strengthening ties with trusted partners. In an industry full of speculation, Salesforce shows that smart partnerships win over hype.
While the partnership with Google provides key benefits such as enhanced security and seamless integration with its ecosystem, it also carries the risk of over-reliance on Google and potentially higher costs than some competitors.
Is Salesforce a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CRM stock based on 32 Buys, seven Holds, and two Sells assigned in the past three months. The average CRM price target of $396.22 per share implies a 24.43% upside potential.