Salesforce.com's Burning Desire to Win

I suspect each of us attends so many meetings, conferences, trade shows and networking sessions the specifics from any one particular event fade over time.

For instance, I can tell you that John Chambers from Cisco Systems and Scott McNeely of Sun are exceptional speakers each with a dramatically different style. Yet, I haven’t a clue about the messaging they delivered last year at their respective FOSE key notes.

Of course, like certain memories from childhood there are times when a speaker addresses a topic or answers a question that sticks with us.

More than eight years ago I attended a Northern Virginia Technology Council (NVTC) event that featured a presentation on corporate strategy from the CEO Of an online marketplace called Pack Expo. I can’t recall the CEO’s name or what he talked about, other than the fact that the company has just negotiated an exclusive reseller agreement which gave them access to a new market. The CEO was particularly giddy this teaming agreement effectively blocked out their primary competitor.

Hands went up for questions and a woman in back shot up. Didn’t the CEO think it was unfair for PackExpo to negotiate a relationship that derailed the prospects of another company, she asked. Wasn’t there enough business to go around for everyone to work collaboratively?

I remember the CEO responding decisively. I won’t apologize for being in business to win, he said. We provide value to our customers through our products supported by a strategy that delivers a return for our company, its shareholders and its employees.

I suspect Salesforce.com subscribes to this view as well. In a recent InfoWorld column, Bill Snyder recounts the tussle between the software-as-a-service leader and a start-up called Zoho. The story breaks down as follows:

-Salesforce.com gives the green light for Zoho to sell its products on AppExchange, even though one of the applications is a competitive CRM offering. This deal will give Zoho access to thousands of potential new customers, so they invest time and money to integrate their products with AppExchange.

-Salesforce.com CEO approaches Zoho CEO about a potential acquisition of the company. Zoho says “no.”

-Salesforce.com changes its mind and gives Zoho the boot off of AppExchange. Zoho cries foul to the trade press.

While Salesforce.com comes off as untrustworthy, the company is completely within its right to alter the nature of its relationship with Zoho. I suspect the initial agreement was part of Salesforce.com’s approach to acquire Zoho at the most favorable terms possible.

It didn’t work out. So they changed course. As long as Salesforce.com did not violate the terms of a contract or acting unethically, they were merely executing on a business strategy.

Where it breaks down for Salesforce.com is when their CEO Mark Benioff stands in front of a room of customers at its user conference and declares that they, unlike Microsoft, “love everybody.” (Image courtesy of ZDNet.)

It’s simply not true and, as a result, the statement rings hollow. Like the speaker from my NVTC event, Benioff should embrace his desire to win.