[Science and Technology | Daily Highlights] On August 3, 2022, there was a news in the industry that the global SaaS software giant Salesforce may be shutting down its Chinese business, including Hong Kong. After all, Chinese companies going overseas and foreign companies entering China have brought visible business opportunities to Salesforce. It is worth pondering why it is frequently reported that it has shut down its Chinese business.
In June 2022, foreign media reported that as startups and large technology companies were squeezed by rising interest rates and stock market sell-offs, the rate of layoffs reached the highest in two years. Data show that last month, 66 technology companies around the world issued as many as 16,800 layoff notices, exceeding the total number of layoffs at 52 companies since the first four months of this year, and reaching the highest number of layoffs in a single month since May 2020 once. Large tech companies, including Meta and Twitter, directly suspended hiring in some departments. Tech companies including Microsoft, Snap, Uber, Salesforce and others are also slowing down their hiring.
In August 2022, there was another news that Oracle Corporation began laying off employees in the United States. In addition, Canada, India, and parts of Europe will also lay off workers in the coming weeks or months. In addition, technology companies such as Microsoft, Alphabet, and Apple are all discussing reducing the scale of hiring.
It can be seen that layoffs in the global technology field in 2022 have become a focal topic. On the one hand, Salesforce may close its business in China, which is affected by this situation. On the other hand, it is estimated that it will also be adjusted by Salesforce's global development layout.
We can look at it earlier. In 2021, Tableau, the BI software for visual analysis of Salesforce, will stop all direct business activities in mainland China on November 17, 2021, and will be closed on January 31, 2022. Terminate the existing partnership in mainland China.
This means that Tableau's existing customers in mainland China will continue to be served through the customer solutions team and partners in Singapore. As a subsidiary of Salesforce, Tableau's future market activities in mainland China will be handled by Alibaba, Salesforce's strategic partner in China. In 2019, Salesforce reached a cooperation agreement with Alibaba. Alibaba became the exclusive provider of Salesforce in Mainland China, Hong Kong, Macau and Taiwan.
Tableau was acquired by Salesforce for more than $15.3 billion in 2019, thus quickly entering the data visualization market and directly competing with Microsoft's Power BI. Of course, domestic BI software companies such as Fanruan, SmartBI, and Yonghong have not benefited a lot from Tableau's withdrawal from the Chinese market.
It can be seen that Salesforce's business layout is undergoing new changes. It is worth paying attention to what new adjustments will be made to the segmentation of the Asia-Pacific market. Before that, Salesforce's Shanghai and Beijing offices were mainly responsible for sales and consulting. Salesforce Singapore Asia Pacific Headquarters is mainly involved in sales, marketing, business development, etc. Salesforce China is mainly responsible for the business in mainland China, Hong Kong and Taiwan. At present, the business in mainland China and Hong Kong, China will be provided by Alibaba Cloud. Taiwan, China is included in the Southeast Asia region and managed by the Singapore office.
（by Aming）
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[Science and Technology Explanation] Focus on the analysis of technology companies, speak with data, and show you how to understand technology. This article and the author's reply only represent personal opinions and do not constitute any investment advice.