October 4, 2010 / 6:33 PM / in 7 years

UPDATE 1-Salesforce.com to expand Japanese business - Nikkei

Oct 5 (Reuters) - U.S.-based cloud computing firm Salesforce.com (CRM.N) is taking steps to broaden its operations in Japan, the Nikkei business daily reported.

Salesforce.com plans to set up its first Japanese data center and buy more than 5 percent stake in software developer Synergy Marketing Inc 3859.OJ for 100-200 million yen ($1.20-$2.40 million) in order to boost its annual sales to 100 billion yen, the paper said.

The company, which now generates under 10 billion yen a year from its cloud computing services in Japan, has decided to lease one floor of a data center in Tokyo from NTT Communications Corp where it will station several hundred high-performance computers and begin operations in 2011, the daily said.

Salesforce.com has a global customer base of 82,400 companies, including 3,000 Japanese firms, which are serviced from data centers in the U.S. and Singapore, the daily said.

Synergy Marketing will conduct several rounds of third-party share allocations to increase its capital starting October, the business daily said.

    From January, Synergy Marketing will develop and sell new products that integrate the features of the software provided by both the firms, which will enable Salesforce.com to offer cloud-computing services covering everything from customer development to business management, the Nikkei said. (Reporting by Soham Chatterjee in Bangalore; Editing by Vyas Mohan)

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