Salesforce announces its first price increase in seven years, with a 9% average raise for select cloud and marketing tools starting in August. The decision comes as the company continues its investments in generative AI and aligns with the evolving landscape of the cloud services industry.
11 July 2023 – Salesforce, a leading provider of customer relationship management software, has revealed plans to raise prices for some of its cloud and marketing tools by an average of 9% starting in August. This marks the company’s first price increase in seven years and comes as it continues to invest in generative artificial intelligence (AI) capabilities to enhance its products and services.
The news of the price hike has had a positive impact on Salesforce’s stock, with shares rising nearly 4% in early trading on Tuesday. Over the past seven years, Salesforce has allocated over $20 billion towards research and development efforts, focusing on introducing new features and incorporating generative AI tools into its software.
This price adjustment also aligns with a broader trend in the cloud services industry. As revenues from cloud services, which experienced significant growth during the pandemic lockdown, begin to stabilize, companies like Salesforce are reassessing their pricing strategies. Major players in the cloud market, including Microsoft, Amazon.com, and Alphabet, have faced increased pressure as enterprise clients aim to optimize their cloud spending amidst rising borrowing costs.
The new prices for Tableau, Sales Cloud, Service Cloud, Marketing Cloud, and Industries will apply to both new and existing customers, as stated by Salesforce. The adjustment reflects the company’s ongoing commitment to delivering innovative solutions while ensuring long-term sustainability. – Reuters