Google, Salesforce to buddy up over CRM

Google and Salesforce.com are expected to today launch a combined website that is designed to allow the online customer relationship management software maker to act as a reseller for Google's AdWords.

For Salesforce.com, the alliance expands its efforts to tie its hosted CRM software with Google AdWords, following its acquisition of privately held Kieden last year. Salesforce.com will expand beyond allowing its customers to launch Google AdWords from a Salesforce.com application to one in which it will act as a reseller of the Google AdWords platform.

The two companies jointly developed Salesforce Group Edition featuring Google AdWords and plan to jointly market the offering, said Kendall Collins, senior vice president of marketing for Salesforce.com.

Salesforce Group Edition is designed to allow companies to connect to Google AdWords and have their advertisement displayed on Google.com when related search terms are entered on the site, as well as distribute their ads on Google AdSense.

When potential customers click on the advertisement, they are taken to the company's website. Potential customers are then encouraged to fill out a form that records their name, and this information is transmitted to a company's sales team, as a potential sales lead via Salesforce's technology.

Collins said: "This alliance was a natural fit for us," noting that the two companies are similar in the way they approach delivering services over the internet, such as leveraging open application program interfaces.

The Salesforce Group Edition featuring Google AdWords will target mid-size to small companies and cost $1,200 per year for five users, after the 30-day promotional price of $600 for five users for the first year expires. That promotional price includes a $50 per year Google AdWords credit.

As part of the nonexclusive deal, Salesforce will receive all proceeds from the sale of its Salesforce Group Edition and share a nominal portion of any Google AdWords sales, Collins said. The remainder of the proceeds from Google AdWords will go to Google.

While the joint-development efforts between the companies has produced one product, Sean Whiteley, director of Salesforce's search marketing, said its customers will drive future development plans.

Whiteley said: "We're hoping that as people use these products, it will become evident what we should do next."

Dawn Kawamoto writes for CNET News.com