Google and Salesforce.com Sign 5-day Contract to Counter Microsoft

According to the latest reports from foreign media, an insider closely related to European Salesforce.com said on Thursday that Google and Salesforce.com would announce a partnership next Tuesday.

Salesforce.com plans to hold an online press conference at 11:00 am on Tuesday, attended by Lindsey Armstrong, Vice President in charge of operations in Europe, the Middle East, and Africa. He will announce a "strategic statement." This insider stated that it is completely reasonable to speculate that this strategic statement is related to Google.

In the U.S., Salesforce.com has indicated that the company will make a statement announcing cooperation with a "major internet company in the Bay Area." On Thursday, a spokesperson for Salesforce.com in the U.S. did not comment on this internet company.

The Wall Street Journal reported on May 21 that Google and Salesforce.com were holding talks to form an alliance. If successful, the two companies would bundle their respective web-based applications. Both companies refused to comment on this report.

Google and Salesforce.com are both experiencing rapid expansion in their respective network services. Currently, Google has expanded its business from internet search to other online service areas, including desktop application software. Salesforce.com, which has been established for eight years, has firmly taken root in the customer relationship management field, but the company seems to have broader ambitions. They hope to establish a platform through their AppExchange website, which will become an online software market.

Earlier this month, Marc Benioff, CEO of Salesforce.com, told analysts, "Google, Amazon, eBay, and Yahoo have inspired us. We want to replicate their operations in the consumer world." He added that, in his view, Salesforce.com is effectively building an operational system that people need.

Meanwhile, Microsoft, Google's main competitor, is also improving its Windows Live online services, including a hosted version of Dynamics CRM software.

The Wall Street Journal implied that Google and Salesforce.com need to join forces to fight against Microsoft instead of competing with each other. (Allen)