HFS Highlight: IBM strengthens its Salesforce services value proposition in hot growth markets with the acquisition of Waeg

In May 2021, IBM announced its acquisition of Salesforce Platinum partner, Waeg.  Based in EMEA, Waeg has specific expertise in Salesforce Commerce Cloud for the B2B market. It will continue to operate as a separate unit, aligned to the IBM global Salesforce practice, led by Al Jenkins. Waeg adds approximately 500 Salesforce certifications among an HFS estimated 100+ team of experts.  This deal comes hot on the heels of IBM’s purchase of 7Summits in January 2021. Both acquisitions support IBM’s strategic intent to deliver a comprehensive set of Salesforce services offerings, across geographies and industry sectors.

Waeg adds capabilities and innovation to the IBM portfolio

Waeg’s differentiators lie in five areas that include capabilities and approach.

1. Salesforce Commerce B2B experience: Waeg has expertise in delivering Salesforce Commerce Cloud to B2B clients. This solution was a high-growth area before the COVID-19 pandemic, and demand has since sky-rocketed. Digital presence has moved from being “nice to have” to necessary for business survival. As many Salesforce service partners are challenged to attract and train consultants in the commerce space, the Waeg acquisition gives IBM a significant advantage.
2. Strategy services focus: Waeg positions as a strategic partner, assisting clients to “surf the wave of digital transformation” (the word “waeg” being Old English for “wave”). Beyond technical implementations, Waeg assists clients to consider the wider business context to achieve business outcomes. It helps clients to navigate their changing business models and handle tricky areas such as change management. This complements IBM’s approach to be position as a strategic partner.
3. Healthcare and life sciences, and manufacturing expertise: Waeg has project experience, service offerings, and proprietary assets to support customers in these industries. This aligns with IBM’s keen focus on building relevant offerings for industry sectors.
4. EMEA-wide presence and delivery capability: Waeg has experience in 11 countries across EMEA, with offices in 8 locations in this region. Its local language and business culture knowledge are rare and important to operate in EMEA. This strengthens IBM’s presence and skills across EMEA, which is a growth region for the Salesforce services market.
5. One Waeg delivery model: It is not just what Waeg offers that makes this acquisition attractive. It is also how it delivers and engages with clients. While the managing partner is based in Brussels, Belgium, the company views EMEA as one market rather than a group of siloed, individual country markets. Its One Waeg delivery model combines local presence with a Center of Excellence approach across EMEA to support clients as one global team.

The Bottom Line: IBM ramps up on one of the fastest-growing Salesforce solutions coupled with important EMEA coverage

Salesforce is emerging as an important platform for clients wanting to align with the OneOffice concept. In the HFS Salesforce Top 10 report in 2020, service providers identified Salesforce Commerce Cloud as a top 3 fastest growing Salesforce solution and a priority for certification investment in the next year. Moreover, 70% of their business was in North America, highlighting that EMEA and APAC are growth areas in the next few years. This acquisition provides IBM a significant boost in the solution and geography that helps it to stay abreast of the leaders in this market.