Salesforce and ServiceNow Invest $1.5B in AI Cloud Company Genesys : Lauren Metcalf
by: Lauren Metcalf
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**Summary:** Salesforce and ServiceNow have jointly invested $1.5 billion in Genesys, a company specializing in agentic AI cloud software. This funding will help Genesys enhance its Contact Center as a Service (CCaaS) and Customer Relationship Management (CRM) offerings, which were developed in collaboration with both tech giants over the past 18 months. Part of the investment will also be used to buy back shares from current equity holders, while Hellman & Friedman and Permira will remain the majority owners. Tony Bates, CEO of Genesys, emphasized that the company aims to provide long-term value through improved customer experience management. Salesforce's David Schmaier noted that this investment strengthens their partnership to deliver AI-driven customer experiences across various channels. Salesforce has been actively acquiring companies to enhance its AI capabilities, including recent acquisitions like Convergence.ai and Informatica. The competition between Salesforce and ServiceNow is intensifying, especially as both companies venture into each other's markets. This rivalry may create opportunities for independent software vendors (ISVs) offering AI solutions. **Key Details:** - **Investment Amount:** $1.5 billion from Salesforce and ServiceNow. - **Company:** Genesys, known for its CCaaS offerings. - **Funding Uses:** Enhancing CCaaS-CRM offerings and share buybacks. - **CEO Quotes:** Focus on customer experience and AI-driven solutions. - **Market Competition:** Salesforce and ServiceNow are competing in overlapping markets. **Additional Context:** The investment in Genesys reflects a broader trend where major tech companies are focusing on AI to improve customer interactions. As both Salesforce and ServiceNow expand their services, the landscape for customer experience technology is rapidly evolving, benefiting companies that can provide innovative AI solutions. **Hashtags for SEO:** #Salesforce #ServiceNow #Genesys #AI #CloudComputing #CustomerExperience #CCaaS #CRM #TechInvestment #DigitalTransformation
Salesforce and ServiceNow have invested $1.5B into agentic AI cloud software company Genesys.
Genesys, which launched the CX Cloud in collaboration with Salesforce and Unified Experience with ServiceNow over the last 18 months, plans to use part of the funding to boost its CCaaS-CRM offerings with the two tech giants, according to CX Today.
What Is the Funding for?
Part of the funding will also go towards repurchasing shares from equity holders, but Hellman & Friedman, along with Permira, will stay the majority owners, reports say.
Chairman and CEO of Genesys, Tony Bates, said: “Genesys is delivering long-term value to enterprises through end-to-end customer experience orchestration that can drive loyalty, grow revenue, and reduce operating costs.
“We’re proud to have the support of industry leaders like Salesforce and ServiceNow, and we believe this reflects growing momentum around agentic AI and the importance of connected, autonomous customer experiences.”
Genesys is known for its Contact Center as a Service (CCaaS) offerings and has been innovative in its approach to bringing about a unified CRM-CCaaS approach with Salesforce and ServiceNow.
David Schmaier, President and Chief Strategy Officer at Salesforce, said: “This investment deepens our partnership with Genesys to deliver AI-assisted and agentic AI-powered customer experiences across every channel, from voice to digital.”
What Does This Mean for Salesforce?
Salesforce has been on something of an acquisition streak lately, with Convergence.ai and Informatica coming into the mothership’s fold earlier this year.
The CRM giant has also recently revealed that it has signed a definitive agreement to acquire AI-prospecting platform Bluebirds for an undisclosed figure – in what appears to be a bid to boost Agentforce’s capabilities.
The theme here has been clear for a while: AI.
In terms of the capabilities of Genesys CX, this includes:
- Contact centre software.
- Digital channels to optimise, connect, and personalise experiences.
- Native, embedded AI that powers personalised experiences and mines customer insights.
- Workforce engagement management tools.
- Customer journey management solutions.
- A single cloud architecture for unifying your contact centre technology stack.
CEO and Principal Analyst at Valoir, Rebecca Wetteman, said that, as competition heats up between Salesforce and ServiceNow, both tech titans have incentives to “optimize the Genesys relationship, and cash is one way to do that”.
Final Thoughts
We seem to be seeing the rivalry between Salesforce and ServiceNow heating up to the point where both companies are competing for the same spaces, influence over SMBs, and each other’s primary markets.
ServiceNow announced earlier this year that it was entering the CRM space, and Salesforce CEO Marc Benioff said that the cloud giant would be entering the IT Service Management (ITSM) space.
As Wetteman is quoted as saying in the previous section, cash is one way to optimize a relationship. Bearing this in mind, the cold war between ServiceNow and Salesforce may come to benefit ISVs that offer AI solutions – who can now use the competition for influence (and the potential for acquisitions) between the two titans.
The post Salesforce and ServiceNow Invest $1.5B in AI Cloud Company Genesys appeared first on Salesforce Ben.
August 01, 2025 at 09:52PM
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