On Monday, Salesforce CRM announced that it would buy Tableau Software Inc. DATA, a big data business analytics software company, for $15.7 billion in stock, fueling a 34% jump in the shares of Tableau. This deal came through just days after Alphabet Inc.’s Google said it would be spending $2.6 billion in cash to buy Looker, a startup business-analytics company.
Tableau uses self-service analytics to help people with any skill level work with data. Among the companies that use Tableau’s services are Charles Schwab, Verizon and Netflix. Once the transaction closes, Tableau will operate independently and stay headquartered in Seattle.
“Joining forces with Salesforce will enhance our ability to help people everywhere see and understand data,” Tableau President and CEO Adam Selipsky said in a prepared statement.
The deals seek to put both Google’s cloud business and Salesforce in better positions with more business-analytics software for their cloud-based customers, where data is the biggest buzzword but where the two companies had not been meeting their potential.
“Both those two things [deals] really reinforce the strategic importance of data,” said Mike Tuchen, CEO of Talend, which helps companies integrate data across the cloud and on site. “Every company is waking up to the power of data to fundamentally transform their business.”
“Salesforce’s incredible success has always been based on anticipating the needs of our customers and providing them the solutions they need to grow their businesses,” said Keith Block, co-CEO, Salesforce. “Data is the foundation of every digital transformation, and the addition of Tableau will accelerate our ability to deliver customer success by enabling a truly unified and powerful view across all of a customer’s data.”