Enterprise

Former Rival Marc Benioff Is Blown Away By The 'New Microsoft'

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Marc Benioff
Salesforce.com CEO Marc Benioff  Business Insider/Julie Bort

Microsoft's new CEO Satya Nadella has made a fan out of one former Microsoft rival: Salesforce.com CEO Marc Benioff.

Microsoft was even the opening act of Salesforce's massive customer conference being held in San Francisco this week.

Benioff interviewed Microsoft's new Windows marketing leader, Tony Prophet, on stage. Prophet was hired away from Hewlett Packard when Nadella took office.

"A year ago at Dreamforce we would not have thought Microsoft would have been here, on stage. It's a shock," he said, to laughter from the crowd. "I'm fascinated that he chose you as the representative of Microsoft."

John Thompson
John Thompson, Microsoft chairman and Virtual Instruments CEO  Microsoft

In May, just a few weeks after Nadella took office, the two companies struck up a partnership, initiated by Microsoft. They are showing off the not-yet-ripe fruits of that young partnership at the conference which includes making Salesforce.com and Microsoft Office apps work together with new Windows and Windows phone apps.

The reason this partnership is so shocking: Salesforce.com and Microsoft have been bitter competitors in Salesforce.com's bread-and-butter market, "customer relationship management" software that helps salespeople track contacts and make sales.

That competition isn't going to end either. In fact, a Salesforce exec recently told new recruits  to view this partnership like means to grab share away from Microsoft.

"We're gonna wrap our arms around Microsoft. We're gonna pretend like we're a boa constrictor. And we're gonna suck the life out of them," a Salesforce.com strategy executive told trainees last month.

That was not a sanctioned opinion by the company, who tells us,"We deeply value our partnership with Microsoft."

Clearly Benioff wanted to prove that how much he values the new partnership with Microsoft, too, with this opening interview.

Microsoft Tony Prophet
Tony Prophet, Microsoft corporate vice president, Windows Marketing  Business Insider/Julie Bort

Prophet and Benioff are friends through their mutual love of philanthropy. Prophet is a supporter of the new Benioff Children's Hospital in San Francisco, and supports AIDs and teen education projects in San Francisco.

The soft-spoken, contemplative Prophet couldn't be more opposite than previous Windows boss Steven Sinofsky, the man who led Windows 7 and Windows 8 and was known as brilliant, but combative and authoritarian.

Benioff says he's floored that one of the first things Nadella did was hire Prophet and reach out to Salesforce.com, though the partnership may have been the brainchild of Microsoft's new chairman, John Thompson.

Thompson became chairman when Nadella was named CEO and Bill Gates stepped down from the chairman role. (Gates didn't leave Microsoft. His new title is "Founder and Technology Advisor" and he's actually more involved now than he was as chairman.)

Thompson is a well-respected leader in the tech industry, first as a high-ranking IBM exec and then as the man who turned security company Symantec into a multi-billion powerhouse. He left Symantec in 2008.

Right after becoming chairman Thompson called Benioff and suggested dinner.

"He's someone I've had a strong friendship with for 25 years in the industry," Benioff said. "Now he's the chairman of Microsoft. When I look at John, when I look Satya, when I look at you, I say, 'Wow, we have three dramatically different leaders than what has been there for decades.' To me that's the No. 1 indication that there is a new Microsoft because the people are new at the top."

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Julie Bort was Business Insider's Editor at Large for the Tech team. She loves investigating stories and shedding light on the tech industry's most amazing people.Here's a small sample of some of Julie's work.Former Pinterest employees describe a traumatic workplace where managers humiliate employees until they cry, Black people feel alienated, and the toxic culture 'eats away at your soul'Sex, tequila, and a tiger: Employees inside Adam Neumann's WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked itInsiders say WeWork's IT is a patchwork of cheap devices and Band-Aid fixes that will take millions to fixWeWork's toxic phone booths were created in-house by its Powered by We business70-hour weeks and 'WTF' emails: 42 employees reveal the frenzy of working at Tesla under the 'cult' of Elon MuskElon Musk works so many hours at Tesla, employees are constantly finding him asleep under tables and desksHow this woman went from a Pizza Hut employee to a founder of a $4 billion startupAn Oracle insider explains how some salespeople gamed the system to sell more cloudTHE TAKEDOWN OF TRAVIS KALANICK: The untold story of Uber's infighting, backstabbing, and multimillion-dollar exit packagesMicrosoft is in talks to buy GitHub, a startup at the center of the software world last valued at $2 billionThe alarming inside story of a failed Google acquisition, and an employee who was hospitalizedInside Facebook's plan to eat another $350 billion IT marketHow a registered sex offender wound up living in an Airbnb hosting unsuspecting guestsA controversial ex-banker is the person who really runs Twitter — and he's gambling the company's future on one risky betSecret passages and skipped meals: Oracle's CEO gave us a rare peek at what it really takes to run a $37 billion companyHP told some employees to choose between becoming contractors with no benefits or being fired without severance'I felt like we were being extorted': Customer says Oracle tried to strong-arm him into a cloud saleHow the queen of Silicon Valley is helping Google go after Amazon's most profitable businessAirbnb host: A guest is squatting in my condo and I can't get him to leaveLIES, BOOZE, AND BILLIONS: How one of the fastest-growing startups in Silicon Valley history raised $580 million then spiraled out of controlGitHub is undergoing a full-blown overhaul as execs and employees depart — and we have the full inside storyWhen she's not writing for Business Insider, Julie can usually be found on the trails, on my mountain bike, or on my skis, if you know where to look.