Salesforce is losing the former CEO of MuleSoft, almost 2 years after he sold his company to the cloud giant for $6.5 billion
Salesforce Executive VP and former MuleSoft CEO Greg Schott is leaving the company, Business Insider has learned. Schott came to Salesforce in March 2018 after the cloud software giant bought MuleSoft and was then prompted to executive VP of emerging API initiatives at Salesforce in May. MuleSoft makes tools that helps bring data from one piece of software into another, whether or not they have an official integration, making it a key piece of Salesforce's overall strategy. The news comes not long after the departure of co-CEO Keith Block. Click here for more BI Prime stories.
Salesforce Executive VP Greg Schott is leaving the company, Business Insider has learned. An update to Schott's LinkedIn profile shows his employment at Salesforce ending this month. Schott came to Salesforce in March 2018 after the cloud software giant bought MuleSoft, where he had been chairman and CEO since 2009, for $6.5 billion. He was promoted to executive VP of emerging API initiatives at Salesforce in May. News of his departure comes shortly after former Salesforce co-CEO Keith Block made the surprise announcement that he would be stepping down from the role, remaining only as an advisor to CEO Marc Benioff. MuleSoft, for its part, has gone on to become a key part of the company. MuleSoft makes tools that helps bring data from one piece of software into another, whether or not they have an official integration. That's important for Salesforce, which has been working towards a goal of helping its customers get a "360-degree view" of all of the data in their company, across all of their various software systems in the sales, service, and marketing departments. MuleSoft is Salesforce's second biggest acquisition, with its more recent $15.7 billion acquisition of Tableau being the biggest. Schott joined MuleSoft as its CEO and chairman in 2009 and led the company to its IPO in 2017, before it was acquired by Salesforce in 2018. Prior to that he held roles at other software companies. Schott's exit is not unusual for a CEO whose company has been acquired. Ross Mason, MuleSoft's founder, left the company to join the SignalFire venture fund after the acquisition. Scott McCorkle, the former president of ExactTarget, which Salesforce bought for $2.5 billion in 2013, became the head of Salesforce Marketing Cloud. He then left the company in 2016 and later founded a startup called MetaCX. However, Schott's departure is notable for coming so soon after Block announced his own exit, raising the question of whether other execs will follow. Got a tip? Contact this reporter via email at firstname.lastname@example.org or Signal at 925-364-4258. (PR pitches by email only, please.) You can also contact Business Insider securely via SecureDrop.Join the conversation about this story » NOW WATCH: 62 new emoji and emoji variations were just finalized, including a bubble tea emoji and a transgender flag. Here's how everyday people submit their own emoji.
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Industry insiders think $927 million Domo is the next big cloud acquisition – but sources say CEO Josh James has rebuffed encouragement to sell and wants to prove he's 'not just a founder, but a CEO'
Data analysis software company Domo has faced challenges during the pandemic, but its stock closed up...Data analysis software company Domo has faced challenges during the pandemic, but its stock closed up more than 10% after the company reported better-than-expected first-quarter earnings despite the coronavirus crisis. Domo is expected by many analysts to be the next big cloud acquisition target. As one analyst recently told Business Insider, Domo is "one of those companies that it's kind of surprising that it hasn't been acquired yet." But banking and tech industry sources told CEO Josh James, who has majority voting power, has been reluctant to sell despite encouragement from bankers. James has always "wanted to prove he's not just a founder, but a CEO," one source said. James said at a Domo conference in March that he doesn't want to sell, but would be open to inbound interest from a would-be acquirer if the deal made sense and it was the right time. Do you have information about Domo or another tech company? Contact this reporter via encrypted messaging app Signal (+1-425-344-8242) or email (email@example.com). Visit Business Insider's homepage for more stories. Domo, a Utah-based data-analytics company currently valued on the public markets at just shy of $1 billion, is expected by many analysts to be the next big cloud acquisition target. But sources tell Business Insider the company's CEO Josh James, who has majority voting power, is reluctant to sell — despite encouragement from bankers. The company faced hurdles early on in the coronavirus crisis, slashing its headcount by a reported 10% as part of a $30 million cost-saving plan, even as Morgan Stanley speculated that the situation might exacerbate some of Domo's pre-existing problems when it came to its closing deals. But Domo seems to have rebounded, with the company reporting better-than-expected first-quarter results on Thursday. Shares closed more than 10% higher on Friday, sending its market cap up to about $925 million — quadruple what it was at its 52-week low. Meanwhile, the company was in the spotlight amid the crisis, with Vice President Mike Pence highlighting the company's work with the Iowa state government to expand access to COVID-19 testing. Regardless of Domo's newly-solid footing, however, it's long been eyed as a potential takeover target. Earlier this year, analysts identified Domo as a likely candidate to be the next big cloud acquisition, especially after Salesforce bought Tableau, a major rival to the company, and Google snatched up the similar Looker. As one analyst recently told Business Insider, Domo is "one of those companies that it's kind of surprising that it hasn't been acquired yet." Industry analyst Ray Wang of Constellation Research identified SAP and Google as potential acquirers, while other names that have come up include Amazon Web Services and Salesforce. Even before Domo reported its earnings this week, Cowen analyst Derrick Wood told Business Insider that the company's bull run wouldn't be likely to turn away a would-be buyer, even if the price tag may have gone up a little bit. Wang recently estimated that Domo could fetch a price tag as high as $1.5 billion in a potential acquisition. But James has been heavily disinclined to sell, two banking sources told Business Insider. He would apparently prefer that Domo builds a tech empire of its very own: He's always "wanted to prove he's not just a founder, but a CEO," said a source who works for a Domo competitor. Domo declined to comment on potential M&A activity. "Josh has said numerous times he would love to be running Domo when he's 70 years old; but he's also said numerous times he will always look at any acquisition offer that comes along as it is the responsibility that he has to shareholders," Domo spokeswoman Julie Kehoe said. "It is a fact that in some cases for some companies it makes sense to join forces with an acquirer." Independent streak Sources tell Business Insider that James sees himself as a big name like Salesforce CEO Marc Benioff in the making, and has always wanted to prove he can be a successful CEO, not just a founder who sells his companies — and Domo's recent rebound helps make the case for staying independent. The two bankers, who have worked with Domo in the past, told Business Insider that James has indicated he wanted Domo to stay independent. James owned nearly all of Domo's voting power at the time of the company's IPO in June 2018. Prior to Domo, James was best known for selling his previous company Omniture to Adobe for $1.8 billion in 2009. He was resistant to making that deal at first: A securities filing from the Omniture acquisition shows James first declined Adobe CEO Shantanu Narayen's advances, saying he preferred to discuss "partnership opportunities." Narayen kept pressing, and two months later, James relented and formal acquisition talks began. James now wishes he kept the company independent, a source close to the company said. Bankers have informally approached James with encouragement to sell Domo, but James has rebuffed the idea, the two banking sources say. Kehoe, the Domo spokeswoman, said "Josh feels great about the acquisition of Omniture to Adobe and how it became a bright shining star and a big chunk of Adobe's overall strategy and business. Josh and his team built it into a mature, meaningful, standalone business after running it for thirteen years and three years as a public company. It was the second biggest SaaS company after Salesforce and was on pace to do a robust $500m in revenue. It was profitable and already kicking off $100m a year in cash flow." James has also shown signs in the last several months of being at least open to discussions about a possible acquisition. Asked during the company's Domopalooza conference in March whether it was time to considering selling the business to a larger vendor like SAP or Oracle or Microsoft, James said: "We always take inbounds when we come. I'm certainly not opposed to selling the company. He added: "Do I want to sell? No, I don't want to sell, but there's the reality of also having to face whatever is taking place with your ability to execute out there in the marketplace." He also said, "I didn't sell Omniture too early. I sold Omniture when we felt like we should have sold Omniture and it was the right time." So who would buy? Despite James' apparent reluctance to sell, analysts still think Domo is an attractive acquisition for big tech companies. The acquisitions of Tableau and Looker prove that data analytics is a hot market, with Domo as one of the last large independent companies. This means that Domo could be a benefit to just about any buyer. SAP seems like a likely suitor. Domo Chief Financial Officer Bruce Felt's previous company SuccessFactors, where he was also CEO, sold to SAP for $3.4 billion back in 2012. Meanwhile, Domo frequently partners with SAP-owned Qualtrics, which is also headquartered in the Provo, Utah area. On the other hand, Constellation analyst Wang thinks that neither Salesforce nor Amazon Web Services may be especially inclined to buy. Salesforce just spent $15.3 billion on Tableau in its biggest deal ever, meaning it might be disinclined to write another large check for a similar company, Wang notes. AWS, meanwhile, rarely makes large acquisitions, preferring instead to build technology in-house as much as possible, Wang said. Got a tip? Contact Ashley Stewart via email at firstname.lastname@example.org, message her on Twitter @ashannstew, or send her a secure message through Signal at 425-344-8242.Join the conversation about this story » NOW WATCH: We tested a machine that brews beer at the push of a button
Departing Salesforce co-CEO Keith Block is known as a 'strong operator' who also made a sudden exit at Oracle
Keith Block, the departing co-CEO of Salesforce, first joined the company in 2013 after a sudden...Keith Block, the departing co-CEO of Salesforce, first joined the company in 2013 after a sudden and unexpected departure from Oracle. Block had been a respected sales executive at Oracle before clashing with the late Mark Hurd, who had been co-president, when Block led the tech giant's North America sales organization. Their feud turned nasty public after Block's text messages denigrating Hurd became public. In one message to a colleague, Block called Hurd "lots of noise, not much results." Block quickly became a star executive at Salesforce where he was named co-CEO in 2018. "Keith Block is a super strong operator" who "presided over tremendous growth at Salesforce and had a big role in shaping what the company is today," IDC President Crawford Del Prete told Business Insider. Click here for more BI Prime stories. Keith Block's surprising exit as Salesforce co-CEO caps what had been an impressive run at the tech powerhouse he helped lead against his former company, Oracle. Salesforce said Tuesday that Block is stepping down as founder Marc Benioff's co-CEO. Block will remain as an adviser to Benioff, who will become sole CEO. Block's unexpected departure at Salesforce marks yet another sudden exit in a distinguished, though sometimes controversial, career in the business software market. Block's Oracle career Block joined Salesforce in 2013 after a distinguished 26-year career at rival Oracle where he played a critical sales role. Block had been head of Oracle's North America sales organization. But Block's Oracle career hit a rough spot after he clashed with the late Mark Hurd, who was then co-president with Safra Catz. The feud turned nasty when Block's text messages denigrating Hurd and the Oracle hardware business were made public during a 2012 court case with Hewlett-Packard. Block complained to another Oracle executive that as Oracle president, Hurd was "lots of noise, not much results," and said Hurd should "be a f------ global president." Block also blasted the decision to buy server giant Sun Microsystems in 2010, saying the business was "dead, dead, dead." Block also said: "We bought a dog...Mark wants us to sell the dog." The messages quickly led to speculation that Block was on the way out which also sent Oracle's stock price to slide at the time. Oracle subsequently confirmed that Block had left the company. A superstar at Salesforce Salesforce quickly moved in to hire Block who is widely respected as an enterprise software sales leader. The hire was widely considered a coup for Salesforce, whose founder Benioff, was also an Oracle alum who was known for public feuds with Oracle founder Larry Ellison. Block's reputation and experience as a respected enterprise sales leader were also seen as giving Salesforce a major edge. Block joined Salesforce as president and chief operating officer. He was named co-CEO in 2018. Salesforce was so impressed with Block's performance the company soon rewarded him with a $211,703 car and an $86,423 watch. IDC President Crawford Del Prete described Block as a super strong operator," who "presided over tremendous growth at Salesforce and had a big role in shaping what the company is today." "At the same time, it's clear that Marc likes doing a lot of things, and one of them is running Salesforce," he told Business Insider. What's next for Block? He speculated that Block will "will take on a role running" another cloud software company. Got a tip about Salesforce or another tech company? Contact this reporter via email at email@example.com, message him on Twitter @benpimentel or send him a secure message through Signal at (510) 731-8429. You can also contact Business Insider securely via SecureDrop.Join the conversation about this story » NOW WATCH: How to find water when you're stuck in the desert
Salesforce touted its acquisition of Tableau in its latest earnings call, but integrating the data-analytics company might be more challenging than expected
Salesforce's third quarter earnings were the company's first since acquiring Tableau earlier this year, but it's...Salesforce's third quarter earnings were the company's first since acquiring Tableau earlier this year, but it's still unclear how exactly Tableau will be integrated and what impact it will have on the company's bottom line. Co-CEO Keith Block said on the earnings call with investors that Salesforce intends to use the same playbook to integrate Tableau as it did with MuleSoft. "We are just beginning this integration process, but we have clear synergies from a distribution, product development and cultural standpoint," Block said. However, that integration might be more challenging than expected, says Daniel Newman, the founding partner and principal analyst at Futurum Research. He highlights Tableau's legacy on premise nature versus Salesforce's cloud first beginnings as a potential hurdle in integrating the two platforms. Newman further highlights that, overall, acquisitions like Tableau will be important to fuel the company's growth going forward if it wants to meet its goal of doubling the company in five years. Click here for more BI Prime stories. Salesforce delivered its first quarterly report card since it closed the biggest acquisition in its history, and questions about Tableau — the analytics firm Salesforce bought for $15.3 billion — were a big focus of Tuesday's earnings conference call. While Saleforce's Q3 results beat on the top and bottom lines, expenses from the acquisition of Tableau weighed slightly on the company's results. More importantly, analysts are still trying to get a sense of how Tableau will fit into the company's product line and help Salesforce achieve ambitious growth targets announced to great fanfare last month. Coming off the heels of its annual Dreamforce conference in San Francisco last month, co-CEO Marc Benioff said on an earnings call with investors that he was surprised at the customer reception to Tableau he saw there. "So many of our customers have Tableau, I could not believe it," Benioff said on the call. "They don't have a direct relationship with Tableau ... the number of chief executive officers and CIOs who will directly came to me and my management team and ask us to go wall-to-wall with Tableau has far exceeded any expectations that we could have had." Salesforce acquired Tableau for $15.3 billion earlier this year — the company's largest acquisition ever, with the goal of adding data analytics and visualization capabilities to its product offerings. This was a year after it acquired MuleSoft for $6.5 billion. On the earnings call, co-CEO Keith Block highlighted the importance of collecting and analyzing data from systems that collect it, and said Tableau will help provide that service to Salesforce customers. Tableau is different than Mulesoft However, that integration might be more challenging than expected, Daniel Newman, the founding partner and principal analyst at Futurum Research, told Business Insider. While Salesforce was created as a cloud company, not requiring a heavy infrastructure lift, Tableau is different, he said. More than two-thirds of Tableau's customers still use an on premise model as opposed to using its service in the cloud, Newman said. Therefore the integration might be harder than expected and require more investment than its acquisition of Mulesoft, which was more of a logical acquisition, he added. Some observers found reassurance in Tableau's performance in the quarter. Rob Oliver, a senior research analyst at Baird Equity Research, told Business Insider that Tableau came in above expectations this quarter, given that the two companies have just started integrating. On Tuesday's earnings call, Block said Salesforce intends to run the same playbook for Tableau as it did with the Mulesoft acquisition. He also highlighted the impact Tableau is having on customers like Nissan, Morgan Stanley and Home Depot and the potential opportunity there. "We are just beginning this integration process, but we have clear synergies from a distribution, product development and cultural standpoint," Block said. Tableau brought an additional $308 million in revenue to Salesforce's subscription and support services for the quarter, which totaled $4.24 billion. Overall, acquisitions like Tableau will be important to fuel the company's growth going forward, Futurum Research's Newman said. During its investor day last month, Salesforce said it intends to double the company's size in five years, forecasting $35 billion in revenue for FY 2024. Although the company is growing and delivering earnings that are consistently slightly beating estimates, that alone is not enough to provide the necessary growth Newman said. "Ambitions to double the company, will be heavily dependent on the company making additional acquisitions," he said. Got a tip? Contact this reporter via email at firstname.lastname@example.org or Signal at 925-364-4258. You can also contact Business Insider securely via SecureDrop.Join the conversation about this story » NOW WATCH: 9 items to avoid buying at Costco