Salesforce, once a dominant force in the software-as-a-service sector, has seen its influence waver amid rapid advancements in artificial intelligence (AI). While it helped pioneer modern customer relationship management tools, the company’s difficulty in fully embracing AI integration has left it trailing behind competitors. Over the past two quarters, Salesforce’s stock has dropped over 16%, despite reporting strong first-quarter earnings and offering an optimistic forecast that failed to reverse its downward trend.
Investors and analysts have attributed the lag to high expectations and unfortunate timing, particularly concerning the Salesforce AI strategy. The broader application software sector, which includes Salesforce, has been slow to realize AI’s full potential, especially in the emerging field of agentic AI technology that enables systems to perform tasks with minimal human input.
Informatica Acquisition Signals Bold Move into Agentic AI
In a strategic effort to reestablish its dominance and tap into the booming AI sector, Salesforce has entered into a tentative $8 billion all-cash agreement to acquire Informatica, a leader in enterprise cloud data management. Though not a household name, Informatica is renowned for its integrated data solutions, earning praise from analysts who describe the company as a “gold mine of data.”
Marc Benioff, CEO of Salesforce, believes the acquisition could reshape the competitive landscape. He stated that the deal would help create “the most complete, agent-ready data platform in the industry,” reinforcing Salesforce AI strategy ambition to become a major player in the agentic AI space. Analysts like Ted Mortonson from Baird suggest that Salesforce lacked the data infrastructure necessary to realize this AI vision something Informatica’s assets could now provide.
Daniel Ives of Wedbush Securities also highlighted the strategic value of the acquisition, noting how Informatica’s deep data resources complement Salesforce’s platforms. As rivals like Microsoft, Meta, OpenAI, and Google DeepMind continue to invest heavily in AI, Salesforce AI strategy move is seen as essential to maintaining relevance in an increasingly competitive market.
Analysts See Long-Term Potential Despite Near-Term Pressures
While the short-term outlook for Salesforce AI strategy stock remains uncertain, many analysts view the Informatica acquisition as a promising long-term investment. CFRA Research’s Angelo Zino emphasized that success in AI doesn’t rely solely on data volume; companies must also translate that data into actionable insights for customers. He believes the combination of Salesforce’s platforms and Informatica’s robust data tools could eventually deliver exactly that.
Salesforce’s aggressive acquisition strategy having acquired 70 companies since 2006 has often drawn criticism. Yet this latest move may demonstrate how such an approach can pay off when aligned with evolving technological trends. As the agentic AI race heats up, Salesforce AI strategy is positioning itself to catch up and potentially leap ahead.
Though it may take time for investors to see immediate returns, industry experts remain confident that this bold acquisition could mark a turning point for Salesforce, helping it reclaim its leadership status in a rapidly transforming digital landscape.
