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Salesforce and Alibaba: A beneficial partnership for all?

On Behalf of | Aug 8, 2019 | Business Formation Planning

The cloud is a new way for individuals to store anything from photos to music or documents. However, it also allows people to use streaming services such as Netflix or communicate with people across the globe through Microsoft OneDrive. It connects the world through the internet like never before.

This is the factor of modern cloud technology that also makes it a fundamental aspect of business nowadays. And companies looking to expand their business to China might benefit from a new partnership between two U.S. and Chinese cloud services. 

Salesforce and Alibaba partnership is monumental

At the end of July, U.S. cloud service Salesforce and Chinese cloud service Alibaba announced their new partnership. This is a significant alliance that, undoubtedly, both companies will benefit from. After all, the partnership will allow Salesforce to expand their business and services to customers throughout China.

Global strategic partnerships like this often require a significant amount of consideration and negotiation. And even then, there are risks involved. However, this particular partnership could also create considerable benefits for other businesses.

How does this partnership benefit businesses?

The South China Morning Post reports that there are several ways U.S. businesses could benefit from this partnership, including:

  • Helping U.S. businesses comply with the Chinese market and legal regulations
  • Facilitating data storage and analysis for merchants or business owners
  • Tracking client communication and client relationships
  • Determining market changes or new sales strategies

Essentially, the partnership between Alibaba and Salesforce could make it easier for many more U.S. businesses to operate in China. 

Tech companies may have the advantage amid current events

This partnership could provide valuable assistance to many companies in many fields. Though we have yet to see the effects of it since it is so new. 

However, with the current trade war between China and the U.S., tech companies might experience the most advantages at first. The trade war is leading many companies with a physical presence in China to remove their manufacturers. However, the partnership of the two cloud companies could allow other tech companies to expand into the Chinese market as well.