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Thursday, May 26, 2016

Salesforce signs $400 million deal with Amazon cloud service

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SAN FRANCISCO – Amazon’s AWS cloud division has scored another win with an announcement thatSalesforce will use it to expand services internationally.
Wednesday’s announcement signals that Salesforce is further strengthening its ties with Amazon.
"We are excited to expand our strategic relationship with Amazon as our preferred public cloud infrastructure provider," Marc Benioff, chairman and CEO, Salesforce, said in a statement.
The four-year deal appears to be valued at $400 million, based on a Salesforce filings with the SEC about a deal with an unnamed infrastructure services company.
Salesforce (CRM) has generally run on its own data centers but has been branching out, especially with its app development platform Heroku and some of its Internet of Things services.
Cloud computing allows businesses to rent space and computing power on other company's systems, saving infrastructure and upkeep costs. Amazon (AMZN) is by far the leader in the growing field.
Amazon's AWS (Amazon Web Services) division had 31% of the cloud market in 2015, compared with 9% for Microsoft, 7% for IBM, 4% for Google and 4% for Salesforce, according to Synergy Research Group.
This will be the first time Salesforce will use AWS for its core services such as Sales Cloud, Service Cloud, App Cloud, Community Cloud, Analytics Cloud as part of the company's planned international infrastructure expansion, Salesforce said.
"Leading enterprises and ISVs around the world are migrating their business-critical applications to the AWS Cloud to be more agile and efficient," said Andy Jassy, CEO of AWS.

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