StashLearn
Get the app
Get the app

Join millions of investors on Stash

Investing, simplified

Start today with as little as $5
Get the app
Money News

Why is the King of the Cloud Buying Time?

September 18, 2018

Tech titans are increasingly snapping up dying magazines.

3 min read

Marc Benioff, the founder of the cloud software services company Salesforce, announced this week he will purchase Time magazine, a struggling icon of the news industry, for $190 million.

He follows the lead of numerous other technology multi-billionaires who have purchased important publications in the last few years, including Jeff Bezos, who bought the Washington Post, and Laurene Powell Jobs, wife of Steve Jobs, who purchased The Atlantic magazine.

Salesforce is one of the most successful technology companies in the U.S., and the largest employer in San Francisco, with annual revenue of $11 billion, and a market cap of $118 billion.

Salesforce successfully commercialized a cloud computing service called Software as a Service, or SaaS, for its primary product offering, which helps businesses manage sales cycles with their customers.

More about Benioff and Salesforce

Benioff, a San Francisco native, reportedly conceived the idea for Salesforce while floating off the Big Island in Hawaii more than 20 years ago. He launched his company from his apartment in 1999.

He was something of a child genius, designing apps from an early age, and launching a programming business as a teenager that earned him $1,500 a month—reportedly enough to pay for his own tuition by the time he went to the University of Southern California. He briefly wrote code for Apple in the 1980s before becoming one of the youngest vice presidents at Oracle, where he focused on sales and strategy.

Salesforce and the cloud

Salesforce was an early pioneer of using SaaS for commercial enterprises. SaaS is one way that consumers and businesses use the cloud, accessing software from distant servers via the Internet.

Want to learn more about the cloud computing industry? Read here.

Salesforce is active in an industry called customer relationship management, or CRM. It’s an industry, largely developed by Salesforce, devoted to using data to manage relationships with current and potential customers.

Rather than sell CDs with the company’s software, or otherwise installing its software on customer networks, Salesforce gives its customers access to Salesforce’s products from the company’s own network, on a subscription basis.

In so doing, Salesforce has lowered the costs of its software product, enabling customers to tap into the most recent version of the software, without having to license the product themselves and monitor for the latest updates.

More about the cloud

The cloud computing industry has three different components. In addition to SaaS, there is Infrastructure as a Service, which allows businesses to host their offerings on servers in the cloud; and Platform as a Service, which enables customers to run multiple software applications from a distant computer network.

Salesforce competes directly with Oracle, SAP, and Microsoft, which have similar CRM products.

Some other large cloud computing companies include:

Amazon and Google provide cloud infrastructure services. That means they host the servers that store information for other companies that use the cloud to deliver services. Salesforce, for example, uses Amazon Web Services for its offering.

Tech titans that own publications

Investing, simplified

Start today with as little as $5

Get the App

By Jeremy Quittner
Jeremy Quittner is the senior writer for Stash.

Next for you
Cloud Computing Runs the World

Investment Profile

Bonds Worldwide

An International Bond ETF on Stash

Learn more
Explore more articlesChoose a topic to learn more about
Careers politics budgeting pop culture Retirement
Disclaimers

This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. Stash assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

Furthermore, the information presented does not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Before investing, please carefully consider your willingness to take on risk and your financial ability to afford investment losses when deciding how much individual security exposure to have in your investment portfolio.

Past performance does not guarantee future results. There is a potential for loss as well as gain in investing. Stash does not represent in any manner that the circumstances described herein will result in any particular outcome. While the data and analysis Stash uses from third party sources is believed to be reliable, Stash does not guarantee the accuracy of such information. Nothing in this article should be considered as a solicitation or offer, or recommendation, to buy or sell any particular security or investment product or to engage in any investment strategy. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Stash does not provide personalized financial planning to investors, such as estate, tax, or retirement planning. Investment advisory services are only provided to investors who become Stash Clients pursuant to a written Advisory Agreement. For more information please visit www.stashinvest.com/disclosures.