Last year, at Dreamforce ‘17, we released our first ever State of AppExchange Partners Report to get an objective look at the Salesforce AppExchange and how its partners are using the platform to drive business forward. This year, we are following up on that report to understand the trends and showcase our data on partner strategies, platform investments, and industry performance.
Here’s an excerpt from our executive summary, adding context and explaining our goals:
AppExchange Network Effects in Full Effect
Our findings from 2018 highlight that network effects of the AppExchange are taking effect, and it can be demonstrably seen from multiple angles including growth, investments, and liquidity events. It is safe to assume that Salesforce’s historic growth is driving one side of the network effects of the AppExchange ecosystem. With over 150,000 customers, 88% of which have installed 1+ AppExchange app, Salesforce is increasing distribution opportunities for ISVs. At the time of writing this report, Salesforce crested 6 million AppExchange installs.
The growth that was reported in 2017 continues and, in some cases, actually shows an acceleration. Investors are increasingly funding the ecosystem. Salesforce Ventures, which launched a $100M fund in 2017, has been rapidly deploying those funds. Even more impressive is that in 2018, the broader investment community is following suit: over $500M in investments have been made in those companies that Salesforce Ventures has invested in.
As we look forward, Salesforce is clear that partners are the center of their strategy to achieve $20B in revenue. This will positively impact distribution for partners and likely attract further partners — only strengthening the moat that is the AppExchange.
Some key findings from our report:
- In the first 8 months of the year, there have already been 6 IPOs and 18 acquisitions
- 82% of respondents are seeing an increase in both top line revenue and revenue growth rate. In fact, 31% of respondents that are growing >50% YoY are also increasing their growth rate > 50%
- Per Crunchbase, over $1.3B has been raised by companies in the ecosystem this year alone
- Of the leads that come from Salesforce, over 61% of the leads come directly from the AppExchange listing
This year’s report unearths insights that showcase the real drivers of revenue in the rapidly exploding Salesforce ecosystem.
We get answers to questions such as:
- Why are more companies choosing to develop for the AppExchange?
- Why do leading executives prioritize the Salesforce ecosystem to fuel growth?
- What are some common challenges AppExchange Partners face today?
- How are companies leveraging the Salesforce channel to drive leads and revenue?
If you are at Dreamforce, join us Thursday at 1:00 PM at the Partner Lodge Theater for the chance to talk with key partners featured in the report from Glance Networks, Fenergo, Korn Ferry, and AHM (an IQVIA company) and get the chance to talk to our CEO, Brian Walsh to answer your questions.
It’s not too late to cross paths with us at Dreamforce! Here’s our master page with information on where we’ll be, with details below on some of our great sessions.
CodeScience Dreamforce ’18 Presence
Thursday, September 27, 1:00 PM – 1:40 PM: How Do You Stack Up? Benchmarks from Leading + Up & Coming AppExchange Partners — Park Central, Partner Lodge Theater
- We commissioned the 2nd annual State of the AppExchange Partner Report to gather feedback from AppExchange (ISV) Partners. Join us for a riveting partner panel unveiling key insights, featuring executives from Glance Networks, Fenergo, Korn Ferry, and AHM (an IQVIA company) that will deliver benchmarks on growth, technology, investments, Salesforce as a channel, and more. Learn how ISV Partners like you are leveraging Salesforce and what to look for in the year ahead.
Thursday, September 27, 1:30 PM – 1:50 PM: Building Apps on Lightning: 3 Super-Powers You’ll Gain by Advancing from Clicks — Moscone West, IT Observatory
- Join us to hear from Mohith Shrivastava, author of Learning Salesforce Lightning Application Development, as he discusses the power of using open source tools for advancing user experience, testing apps and components at scale, and doing continuous integration with Salesforce DX.
