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Gagan Kanwar

Partnerships Exec - x-Salesforce, x-MuleSoft

Gagan Kanwar is a professional dedicated to accelerating partnerships and fostering innovation within companies focused on making a meaningful business and social impact. He is known for his expertise in building collaborative relationships and driving forward-thinking initiatives.

Gagan pursued his education by completing an MBA with a focus on Business at the prestigious University of Oxford, reflecting his commitment to continuous learning and development in the field of business and leadership.

Currently, Gagan Kanwar is an esteemed member at Partnership Leaders, a role that showcases his involvement in networking with key industry players and contributing to the advancement of partnership strategies.

Highlights

Apr 19 · linkedin

As a former MuleSoft biz dev guy, I'm baffled by Salesforce's supposed bid to buy Informatica for $11 Billion. It's not the price that concerns me (valuation's a different department) but that Salesforce is missing out on some important structural risks on the value realization side. Here are my top three:

  • Product Overlap: MuleSoft & Informatica are largely in direct competition. They're going after the same TAM, the same customers and the same budgets. Having two competitive products in the bag inevitably leads to customer and message confusion, resource misuse and organizational misalignment (V2MOM --> V2BOMB). It also makes sales & marketing's job ten times harder.

  • Regrettable Attrition: If an acquisition goes through, there will be an immediate drop in employee morale at MuleSoft, leading to significantly higher rate of regrettable departures. That's a problem because when good people leave, the "left behinders" aren't generally the ones you want running the ship. My guess is that talented Informatica employees will have similar feelings and start looking for jobs (once they cash out) to avoid the inevitable rationalization.

-Build, buy or partner: The word on the street is that Salesforce may be buying Informatica because it helps with the data & AI (Einstein) story. I get that and yes Informatica has a few things that MuleSoft might lack - like data catalogs or data integration tools or other stuff. But if Salesforce really wants that tech, they don't need to BUY Informatica. They could PARTNER with Alation, Confluent or even Informatica (and many other great companies). Those paths would cost <10 Million to get an at-scale solution to market, with low technical risk & decent gross margins. And zero internal friction or customer confusion.

Why buy something for $11 Billion when you can get there for < $11 Million with a few partnership (especially in a high interest rate environment)? Unless you want cashflows so bad that you're willing to overlook multiple systemic deal risks. Or you've got a terminal case of the Principal Agent problem. Or Putin has something on you? (okay, that last one was a joke!)

As I said earlier, I'm baffled by this. If any of you has a theory (serious, entertaining or otherwise) about the goings-on at 415 Mission, please do share it with the rest of us.

Gagan Kanwar
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Location

San Francisco, California, United States