Salesforce's business model will help it withstand a recession - Business Insider

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Salesforce could see lower demand right now, but its fundamental business model makes it well-equipped to withstand a recession, analysts say

, experts say.

If Salesforce's bookings are slightly up or down between quarters, the company's longer term contracts provide a reliable business that ensures stability.In the short term though, as companies try to cut costs and save money, there will be less demand for Salesforce's products. Projects to So although those large companies won't get rid of the software entirely, they may not expand its usage throughout the company as fast as originally planned. And since Salesforce sells software that's meant to help companies generate more revenue from customers, it could be more at risk from slowing sales than some other software vendors.

Salesforce is helping businesses go through the process of modernizing their IT and software tools, which makes it a critical partnership for many companies, even if those modernization efforts are put on hold for a while. So in general, customers will stick around, even during times of economic uncertainty.

 

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