Pharmaceutical Industry Showdown: Salesforce Poaches Top Customers from Veeva
The battle for dominance in the pharmaceutical industry’s software market is heating up. Salesforce Inc. has successfully lured over 40 major customers, including a top-three global pharma leader, away from its former partner Veeva Systems Inc. This significant shift in the market comes as Salesforce prepares to launch its life sciences product, a move that could potentially disrupt Veeva’s stronghold on the industry.
Veeva’s Dominance Challenged
Veeva, the well-established incumbent, has long enjoyed an estimated 80% market share in pharmaceutical-focused customer relationship management software. The company’s product was initially built on Salesforce’s platform, and the two companies had a non-aggression treaty in place since 2007. However, Veeva’s decision to end this agreement in late 2022 has sparked a rivalry between the two companies.
Salesforce Seizes the Opportunity
When Veeva opted to go solo, many of its customers approached Salesforce, expressing their desire to stay with the company. This presented an opportunity for Salesforce to develop a competing offering and poach Veeva’s clients. According to Jeff Amann, executive vice president of Salesforce’s industry-specific software lines, the company is now in active discussions with many of the largest pharmaceutical companies to use its new product.
A Rare Growth Opportunity for Salesforce
The life sciences industry represents a rare area where Salesforce’s central product isn’t yet saturated. The company’s new product has already figured in some of the largest deals signed in the most recent quarter. Salesforce is aggressively staffing development teams for the life sciences product, which is set to debut in September.
Veeva Fights to Retain Customers
Veeva, however, remains confident in its ability to retain the majority of its customers. The company has already secured commitments from large clients like GSK Plc and Novo Nordisk A/S. Veeva’s Executive Vice President Paul Shawah believes that Salesforce’s offering will be significantly more expensive and lacks the industry-specific expertise that Veeva has developed over nearly two decades.
The Battle for Pharmaceutical Software Supremacy
As the rivalry between Salesforce and Veeva intensifies, the pharmaceutical industry is poised to benefit from the competition. With Salesforce’s aggressive push into the life sciences market, Veeva will need to work harder to retain its customers and maintain its market share. One thing is certain – the pharmaceutical industry will be watching this battle closely, as the outcome could have significant implications for the future of software development in the sector.
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