Salesforce.com, inc. (NYSE:CRM) Bags $100 Million HHS Contract

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Salesforce.com, inc. (NYSE:CRM)’s aggressive push into finance and healthcare verticals appears to be paying off faster than anticipated. In the latest development, the company has won a $100 million contract with a U.S. health agency.

The U.S. Department of Health & Human Services (HHS) has awarded Salesforce a large contract under blanket purchase agreement (BPA) for subscription. The deal enables HHS to deploy Salesforce for central purchasing activities across its units.

Prior to signing Salesforce.com, inc. (NYSE:CRM) for the BPA deal valued at $100, HHS didn’t have a unified purchasing agreement. As such, the move is expected to enable the agency to acquire more buying power.

According to Salesforce.com, inc. (NYSE:CRM), the subscription that the agency has purchased will enable it to significantly improve citizen-facing services. Additionally, Salesforce says that the subscription purchase makes it possible for HHS to build and deploy new cloud applications faster and easier.

Bulk deals

The HHS deal not only adds to Salesforce’s bulk subscription wins, but also reveals the company’s growing penetration into government service market. Before signing the BPA with HHS, Salesforce had already won a $503 million BPA with the General Services Administration.

Salesforce.com, inc. (NYSE:CRM) looks forward to benefit from government measures to modernize citizen-facing service delivery. As citizen usage of mobile, cloud and other digital products increases, government agencies are struggling to catch up and technology vendors like Salesforce see a huge business opportunity ahead.

Industry-specific focus

Salesforce is beginning to land large deals just as it targets to be laser-focused on specific industries. In the recent times, Salesforce has tended to rollout industry-specific solutions, especially targeting healthcare and finance services markets. Additionally, the company has also been improving its multi-industry offerings. These strategies are expected to unlock more revenue growth opportunities and allow the company to penetrate industries in which it doesn’t already have a strong foothold.

For the current fiscal year, Salesforce.com, inc. (NYSE:CRM) is targeting revenue of between $8.08 and $8.12 billion.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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