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German Firms Strive to Optimize Salesforce Licensing

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The ISG Provider Lens™ report highlights the increasing demand for consulting services to optimize Salesforce license usage in Germany. German enterprises are seeking providers to help reduce costs and efficiently design Salesforce operations. Salesforce's verticalization strategy, industry cloud acquisitions, and focus on GenAI are transforming the market. While there are high expectations for GenAI innovations, adoption challenges remain due to additional license requirements and costs. Leading providers are important in helping enterprises leverage Salesforce for continuous innovation.
Il rapporto ISG Provider Lens™ evidenzia la crescente domanda di servizi di consulenza per ottimizzare l'utilizzo delle licenze Salesforce in Germania. Le imprese tedesche cercano fornitori che aiutino a ridurre i costi e a progettare efficientemente le operazioni Salesforce. La strategia di verticalizzazione di Salesforce, le acquisizioni di cloud industriali e l'attenzione su GenAI stanno trasformando il mercato. Sebbene ci siano grandi aspettative per le innovazioni di GenAI, persistono sfide nell'adozione a causa dei requisiti aggiuntivi di licenza e dei costi. I fornitori leader sono fondamentali per aiutare le imprese a sfruttare Salesforce per un'innovazione continua.
El informe ISG Provider Lens™ resalta la creciente demanda de servicios de consultoría para optimizar el uso de licencias de Salesforce en Alemania. Las empresas alemanas buscan proveedores que ayuden a reducir costos y diseñar operaciones de Salesforce de manera eficiente. La estrategia de verticalización de Salesforce, las adquisiciones de nubes industriales y el enfoque en GenAI están transformando el mercado. Aunque hay grandes expectativas para las innovaciones de GenAI, los desafíos de adopción continúan debido a los requerimientos adicionales de licencia y costos. Los proveedores líderes son cruciales para ayudar a las empresas a aprovechar Salesforce para la innovación continua.
ISG Provider Lens™ 보고서는 독일에서 Salesforce 라이선스 사용 최적화를 위한 컨설팅 서비스에 대한 수요 증가를 강조합니다. 독일 기업들은 비용을 줄이고 Salesforce 운영을 효율적으로 설계할 수 있는 제공업체를 찾고 있습니다. Salesforce의 수직 통합 전략, 산업 클라우드 인수 및 GenAI에 대한 집중은 시장을 변화시키고 있습니다. GenAI 혁신에 대한 기대가 높지만 추가 라이선스 요구 사항과 비용 때문에 채택에 어려움이 있습니다. 선도 제공업체는 기업이 Salesforce를 활용하여 지속적인 혁신을 도모할 수 있도록 중요한 역할을 합니다.
Le rapport ISG Provider Lens™ met en lumière la demande croissante pour des services de conseil afin d'optimiser l'utilisation des licences Salesforce en Allemagne. Les entreprises allemandes recherchent des prestataires pour réduire les coûts et concevoir efficacement les opérations Salesforce. La stratégie de verticalisation de Salesforce, les acquisitions de clouds sectoriels et l'accent mis sur GenAI transforment le marché. Bien qu'il y ait de grandes attentes pour les innovations de GenAI, des défis d'adoption subsistent en raison des exigences supplémentaires en matière de licences et des coûts. Les principaux fournisseurs sont essentiels pour aider les entreprises à tirer parti de Salesforce pour une innovation continue.
Der ISG Provider Lens™ Bericht hebt die wachsende Nachfrage nach Beratungsdiensten zur Optimierung der Nutzung von Salesforce-Lizenzen in Deutschland hervor. Deutsche Unternehmen suchen Anbieter, um Kosten zu senken und Salesforce-Operationen effizient zu gestalten. Salesforce's Strategie der Verticalisierung, die Übernahme von Industrie-Clouds und der Fokus auf GenAI verändern den Markt. Obwohl hohe Erwartungen an GenAI-Innovationen bestehen, bleiben Herausforderungen bei der Adoption aufgrund zusätzlicher Lizenzanforderungen und Kosten bestehen. Führende Anbieter sind wichtig, um Unternehmen zu helfen, Salesforce für kontinuierliche Innovation zu nutzen.
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An increased use of GenAI and a growing emphasis on industry clouds are driving changes in the Salesforce market in Germany, ISG Provider Lens™ report says

FRANKFURT, Germany--(BUSINESS WIRE)-- 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.

Press:

Philipp Jaensch, ISG

+49 151 730 365 76

philipp.jaensch@isg-one.com

Matthias Longo, for ISG

+49 152 341 464 63

matthias@longo-pr.de

Source: Information Services Group, Inc.

FAQ

What does the ISG Provider Lens™ report highlight about the Salesforce market in Germany?

The report points out the rising demand for consulting services to optimize Salesforce license usage and reduce costs among German enterprises.

How is Salesforce's market transformation in Germany described in the ISG report?

Salesforce's market transformation in Germany is driven by its verticalization strategy, industry cloud acquisitions, and focus on GenAI for innovation.

What challenges are enterprises facing in adopting Salesforce according to the ISG report?

Enterprises are facing challenges in adoption due to additional license requirements and associated costs despite high expectations for GenAI innovations.

What role do leading providers play in the Salesforce market transformation as per the ISG report?

Leading providers are essential in helping enterprises efficiently design their Salesforce operations and leverage the platform for continuous innovation.

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isg (information services group) (nasdaq: iii) is a leading global technology research and advisory firm. a trusted business partner to more than 700 clients, including 75 of the top 100 enterprises in the world, 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 automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; technology strategy and operations design; change management; market intelligence and technology research and analysis. founded in 2006, and based in stamford, conn., isg employs more than 1,300 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 compreh