- Customer impact should be mostly positive. Most Demandware customers sought the product as an alternative to the legacy on-premises based solutions. Demandware uses a revenue sharing pricing model. Based on Constellation's vendor selection and contract negotiations experience, most customers pay anywhere between .5% to 3.5% of monthly sales. Customers can use Demandware to power custom websites or work with Demandware LINK partners to build their sites .
Point of View (POV): The acquisition expands the natural definition of CRM and expands the relevance of Salesforce to its customers. Demandware customers gain an end to end commerce play with Salesforce. Conversely, Demandware provides Salesforce customers with a rich and compelling story to deliver on campaign to commerce. From an impact to the customer perspective, Salesforce has shown a positive track record for customers with mergers and acquisitions. Constellation sees minimal impact to the retention of top talent, additional investment in product road maps and integration, and transition assistance for partners and channels with many of the larger acquisitions.
- Market coverage should increase. Demandware leads the commerce cloud market and brings over 300 brands in their B2C cloud commerce platform. Marquee customers include Adidas, Brooks Brothers, Burton, Callaway, carters's, Columbia, Crabtree & Evelyn, crocs, ecco, Ethan Allen, Fila, Godiva, GoPro, Hurley, kate spade, Lancome, Land's End, M&S, NewBalance, Nine West, Panasonic, Pandora, Quicksilver, Reitmans, Rockport, Roots, S.Oliver Samsonite, Scotch & Soda, Skullcandy, Space.NK, Speedo, Stonewall Kitchen, Tory Burch, Traeger, Trina Turk, True Religion, UGG, Urban Decay, Vibram, Vineyard Vines*.
(POV): Salesforce.com and Demandware have many joint customers. As customers bring their front office transactional systems together, the value will come from the insights in the customer network. Commerce is the outcome of good customer experience. Keep in mind, while there may seem little customer upside in the transaction, commerce will drives the future of long term growth for Salesforce.com and increase over total addressable market (TAM) by as much as 35% because the acquisition adds to the network and platform business. Moreover, salesforce.com global reach should pair up well with Demandware in providing global coverage for customers.