Observed Signal · Jul 13, 2023 · Pricing Update · Source: CMSWire · Impact: 2/5 · Sentiment: Negative
Salesforce Raises Software Prices for First Time in 7 Years
Salesforce announced its first list price increase in seven years, with an average 9% raise effective August 2023. The increase affects products across Sales Cloud, Service Cloud, Marketing Cloud, Industries, and Tableau, including the world's most-used CRM system. The company emphasized its investments in generative AI and research, having delivered 22 releases and invested over $20 billion in R&D since the last increase. The move comes amid economic pressures and layoffs at Salesforce, as well as activist investor attention. New list prices for Professional, Enterprise, and Unlimited editions rise by $5, $15, and $30 respectively. Similar increases apply to other products. The company frames the price adjustment as necessary to sustain innovation.
Salesforce's first price increase in seven years affects a broad base of marketing and CRM customers, reflecting economic pressures and investments in AI, but it is not a disruptive industry change.
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Key Takeaways & Evidence Grounding
- Salesforce announced an average 9% list price increase across its Sales Cloud, Service Cloud, Marketing Cloud, Industries, and Tableau products, effective August 2023.
- This is the first list price increase from Salesforce in seven years.
- New list prices include Professional Edition at $80 (up $5), Enterprise Edition at $165 (up $15), and Unlimited Edition at $330 (up $30).
- Salesforce highlighted investments of over $20 billion in R&D and 22 releases since the last price increase.
- The price increase applies to new and existing customers purchasing new clouds globally.
Connected Companies & Entities
5 Entities mapped“Salesforce, which produces customer experience and marketing software, has announced its first list price increase in seven years....”
“Benioff, whose company also bought Slack for $27.7 million in 2021, took responsibility for the layoffs....”
“Adobe users lamented over a 33% increase in Adobe Acrobat Pro for 2023, going from $179.88 to $239.88....”
“Oracle saw price changes in its Oracle Java SE subscription....”
“Even smaller, more niche companies like Otter.ai saw price increases within the past year....”
Ontology Mapping & Concepts
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