Microsoft Teams With Adobe and C3.ai to Take on Salesforce on Its Home Turf

Microsoft Corp. is teaming with Adobe Inc. and C3.ai, the company of customer-software pioneer Tom Siebel, in another bid to better compete with Salesforce.com Inc., the market leader for such programs.

C3.ai will release a new customer-relations management software program that blends its artificial intelligence tools with Microsoft’s Dynamics 365 CRM software and Adobe’s marketing and customer-targeting cloud. The offering pulls in an array of data from a client’s internal systems and outside information, such as social media sentiment and regulatory filings, to predict, for example, future revenue, what new products are needed and which customers might be ready to take their business elsewhere.

Microsoft, the world’s largest software maker, has been trying for more than 15 years to catch Salesforce, the top vendor in the $56 billon market for customer-relations management software, according to Gartner Inc. While Salesforce had 20% market share in 2019 compared with Dynamics 2.6%, the most popular choice in Gartner’s data was “other” with 68%. The fragmented market creates an opportunity for Microsoft, C3 and Adobe, according to executives of the companies. The shift to cloud computing and the demand for AI tools means there’s a desire for new products, especially those that can analyze formerly siloed sets of data. Of course Salesforce is trying to do similar things — it has AI tools called Einstein and spent $6.5 billion to buy MuleSoft to offer products that combine a customer’s in-house systems with data and apps on the public internet.

“Salesforce has done a fantastic job, but they have 20% share and therein lies the story — we talk about this as if it’s all over, and the reality is it is a pretty competitive market,” Microsoft Chief Executive Officer Satya Nadella said in an interview. Called C3 AI CRM powered by Microsoft Dynamics 365, the software is available beginning Monday and will be jointly sold by the three companies.

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