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May 26, 2016

Salesforce splashes $400 million on public cloud deal with AWS

News: AWS is now the preferred cloud provider for Salesforce.

By James Nunns

Salesforce is turning to Amazon Web Services to support its international expansion plans.

The two cloud companies have been building a tighter relationship and now Salesforce will be using AWS to deliver more of its services, highlighting a major shift for Salesforce which has typically run services from its own data centres.

A steady coming together between the two has been seen through connections between Salesforce’s Heroku and SalesforceIQ both using AWS. Recently it was revealed that that the Salesforce IoT Cloud will also use AWS.

Now the customer relationship management (CRM) company is planning to use the AWS cloud for an even wider range of products.

In a blog post, Salesforce revealed that AWS is not its preferred public cloud infrastructure provider so that its core services such as Sales Cloud, Service, Cloud, App Cloud, Community Cloud, Analytics cloud and more will available.

"This will enable us to bring new infrastructure online more quickly and efficiently in select international markets," said Salesforce.

Salesforce disclosed a regulatory filing on Friday revealing that it had signed a four-year deal with an unnamed infrastructure services company worth $400 million. According to sources close to the matter this company is AWS, reports Fortune.

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Although this is a significant deal for both AWS and Salesforce, it does not mean that Salesforce won’t continue to build its own data centres.

Salesforce said: "Salesforce will continue to invest in its own data centers. Salesforce will also utilize AWS in select international markets to help bring new infrastructure online as part of its broader data center strategy."

The company blog was full of praise for its new infrastructure partner, saying that AWS has "sophisticated and robust enterprise capabilities for supporting the needs of Salesforce’s growing global customer base."

Salesforce has long had a dependency on Oracle databases and other software, but the deal with AWS does not necessarily jeopardise this as Oracle’s software can also run on AWS.

The strategic move for Salesforce is expected to provide them more flexibility and global reach as AWS has data centres spread around the world. This may be beneficial for the CRM company as it looks to meet data sovereignty laws in different countries.

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