SalesForce Marketing Cloud recorded organic growth of 21.4%, third quarter of organic deceleration (31.1% in 4Q16, 29.1% in 1Q17. Although management noted this part of the business being resource constrained, we think the result is more a function of
sales people having numerous tools in their sales bags and reaching for the easiest ones, rather than selling something completely new. We think this is most evident in the accelerating pace of growth we?re seeing in the Sales Cloud, where momentum of SteelBrick and SalesforceIQ have ticked up the growth profile to 13.3% YTD vs 9.8% same time last year. We will look for Marketing Cloud growth
momentum to return in FY18, as Demandware drives upsell/cross sell opportunities across the product portfolio.
SalesForce Service Cloud is now at a $2.4B revenue run rate, but YoY growth in Q3 decelerated for the fifth consecutive
quarter to 25.6% (38.1% in 3Q16 and 29.2% in 2Q17). We think Service Cloud is being impacted by a similar dynamic we just discussed.
