Google and Salesforce join forces against Microsoft in SAAS market

In a move that will see two of the most ardent proponents of "Software as a Service" band together, Google and Salesforce have announced that they will collaborate.

The crux of the partnership will be to ease the process through which workers shuttle data between Salesforce.com Customer Management applications and Google own set of online applications, Google Apps.

By the end of the year, Salesforce.com will also become the equivalent of a VAR (Value Added Reseller) for Google by selling and providing technical support for Google products and services.

The integration of the two services marks yet another step that brings Google closer to the corporate entreprise ecosystem; A Salesforce'd Google will compete directly with Microsoft's own CRM package

In a statement to the NYTimes, Marc Benioff, the CEO of Salesforce.com said that “The enemy of my enemy is my friend, so that makes Google my best friend”; in due time, this also opens the way for even tighter collaboration with Google and dare we say, introduces the possibility of an outright acquisition.

Salesforce for Google Apps will be available online to Salesforce Customers at for nought starting from next Monday and Google did not say whether other partners like SAP or Oracle might be next on the list.

Ironically, the news of Salesforce.com collaborating with Google sent the share prices of both company down; the CRM company lost nearly 5 percent since Friday while Google is down by more than 3 percent over the same period.