Well, how about them apples?
In a Reuters article out today, Microsoft said it wasn’t really pursuing Salesforce at this time citing the high cost—about $50 billion for the market cap and what must be calculated for a premium likely to be extracted from any would-be suitor.
As I have been saying, the time when Salesforce would have been a smart acquisition has long passed. When conditions were right for a purchase, the very shrewd people running software companies poo-pooed the whole idea of cloud computing and were not interested. Now, despite some credible efforts at building cloud infrastructures, these same companies have been disrupted.
The same Reuters article quotes Chief Executive Bill McDermott of SAP declining interest too, saying, “We have never bought something that was impaired and in decline.” Clearly implying that Salesforce’s cloud computing software was becoming commoditized—as if legacy on-premise software is still in its hay day.
What cheek. McDermott can only wish his company was as impaired and declining as rapidly as Salesforce. What exactly does impaired mean anyhow? Is it a new GAAP standard?