Salesforce’s Radian6 Taps Twitter To Leverage Its Firehose Of Data

Radian6, the social media monitoring service owned by Salesforce.com (NYSE:CRM) has signed a strategic alliance with Twitter that gives Radian6 customers access to Twitter’s daily public tweets data consisting of more than 400 million tweets per day. Financial terms of the deal were not disclosed by either of the companies. This is a key win for Salesforce.com which is ramping up its social media campaign monitoring and marketing services as it competes to fend off new entrants like Oracle (NASDAQ:ORCL) in the social media marketing space. ^[1]
See our full analysis for Salesforce.com

Advantage Radian6

Twitter’s public tweet data registers more than 400 million tweets a day. Radian6 is a social media monitoring company and would allow its clients to access these tweets to monitor the effectiveness of its social media campaigns. The tweets will most likely be filtered using keywords and Twitter’s hashtag (#). This would greatly improve Radian6’s social listening ability which will directly result in better social media campaign management and measurement for its ~100K clients.

This is a key win for Salesforce in the ongoing Oracle-Salesforce social media market-share free-for-all with Oracle acquiring Vitrue and then Collective Intellect while Salesforce beefed up its social media offering by acquiring Buddy Media. It is unlikely that this will be an exclusive deal as Twitters tweet fire-hose is accessed by other companies such as Google and it may continue to offer its tweet data in further alliances, but is still a key win for Salesforce. Marcel LeBrun, SVP and GM for Salesforce Radian6 had this to say:

“The alliance between Twitter and salesforce.com enables companies to apply the power of social listening and engagement to over 400 million Tweets daily, providing opportunities for social enterprises to engage, solve problems, gain followers and build brand identity”

Social media marketing is a big growth area for Salesforce and if Radian6 coupled with BuddyMedia increases cloud revenue from our projected ~$3 billion to ~$4 billion by the end of our forecast period, we can expect a ~10 percent increase from our current Trefis price estimate.

We currently have a $130 Trefis Price Estimate for Salesforce.com, which is in-line with the current market price.

Understand How a Company’s Products Impact its Stock Price at Trefis

1. Twitter Turns Its Tweet Firehose On For Saleforce’s Radian6 In New Enterprise Deal, www.techcrunch.com, June 14, 2012 [↩]