German Firms Strive to Optimize Salesforce Licensing

Demand is rising among German enterprises for consulting services that can optimize Salesforce license usage and reduce associated costs, a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, says.

The 2024 ISG Provider Lens™ Salesforce Ecosystem Partners report for Germany finds that licenses for Salesforce have now become a considerable cost factor for many German companies. As a result, many are seeking service providers that can bundle licenses with Salesforce implementation and operations as a combined full-service offering, the ISG report says.

“Leading providers can do more than support enterprises in efficiently designing their Salesforce operations,” said Dr. Matthias Paletta, director, technology modernization, for ISG in Germany. “They can also help them make optimum use of their licenses and keep costs under control.”

The market for Salesforce implementation is undergoing a fundamental transformation, driven by Salesforce’s recent verticalization strategy, which was significantly accelerated by the acquisition of industry-cloud software provider Vlocity, and with Salesforce’s increased emphasis on innovations that leverage the capabilities of GenAI, the ISG report says.

The Salesforce verticalization initiative began several years ago with the launch of industry-specific products such as the Financial Services Cloud and Health Cloud, the ISG report says. With the acquisition of Vlocity in 2020, these capabilities have become the core elements for Salesforce’s development of industry-specific offerings, ISG says. However, according to the ISG report, general acceptance has been low, as adoption brings additional license requirements and associated costs.

Meanwhile, Salesforce proactively embraced GenAI when in mid-2023 it announced the integration of OpenAI’s products into its proprietary offering, Einstein GPT, the ISG report says. Although the company’s growth curve has flattened somewhat, there are high expectations regarding its GenAI innovations, ISG says.

“GenAI will continue to be a key focus for enterprises in the coming years,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “They can turn to leading providers for support in using Salesforce as a platform for continuous innovation.”

The report also examines how Salesforce has become one of the leading providers of cloud-based application systems in the form of software-as-a-service (SaaS).

For more insights into the Salesforce ecosystem challenges facing enterprises in Germany, such as considering industry clouds and optimizing AI use, along with ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Salesforce Ecosystem Partners report for Germany evaluates the capabilities of 42 providers across six quadrants: Multicloud Implementation and Integration Services for Large Enterprises, Implementation Services for Core Clouds — Midmarket, Implementation Services for Marketing Automation, Managed Application Services for Large Enterprises, Managed Application Services for Midmarket, and Implementation Services for Industry Clouds.

The report names Accenture, adesso SE, Capgemini, Cognizant, Deutsche Telekom and Infosys as Leaders in four quadrants each, while Deloitte, DIGITALL, HCLTech, IBM, Salesfive and Wipro are named as Leaders in three quadrants each. Factory42, Persistent Systems and Reply are named as Leaders in two quadrants each, while Cloud Consulting Group, DIA, PwC, TCS and Tech Mahindra are named as Leaders in one quadrant each.

In addition, Cloud Consulting Group, Cloud Monsters, DIA, Factory42, Reply, TCS and Tech Mahindra are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

In the area of customer experience, Hexaware is named the global ISG CX Star Performer for 2024 among Salesforce providers. Hexaware earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

A customized version of the report is available from Cognizant.

The 2024 ISG Provider Lens™ Salesforce Ecosystem Partners report for Germany is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI and automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

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