The recent issue of "The Economist" raises an interesting point. Currently, front-end vendors (such as Salesforce) and back-end vendors (i.e. SAP) don't really compete. Many large corporations use Salesforce for CRM and SAP's ERM for the back-end (finance / supply chain).
However, both companies are pursuing an AI layer—specifically AI agents who can autonomously perform tasks. This layer would integrate both front- and back-end applications, and promote efficiency at the client while building a "moat" for the vendor who wins the business.
This will put Salesforce and SAP into competition with each other.
They are already starting to acquire platforms that let them encroach on each other.
© 2025 Praveen Puri
