In December 2022, Veeva Systems announced its decision not to renew its partnership with Salesforce upon its expiration in September 2025. This move signifies a pivotal shift in the life sciences industry’s customer relationship management (CRM) landscape, as Veeva plans to transition its CRM offerings from Salesforce’s platform to its proprietary Veeva Vault platform.
Historical Context
The partnership between Veeva Systems and Salesforce has been a cornerstone in the life sciences industry’s CRM solutions. Established in 2007, Veeva built its CRM solutions on Salesforce’s platform, leveraging Salesforce’s robust infrastructure to cater to the specific needs of the pharmaceutical and life sciences sectors. This collaboration allowed Veeva to offer tailored CRM solutions, combining Salesforce’s technological capabilities with Veeva’s industry expertise.
Over the years, this partnership flourished. In 2010, Salesforce and Veeva announced an expanded alliance to accelerate the delivery of Veeva CRM applications to the global pharmaceutical and biotechnology industry. This expansion solidified Veeva’s position as Salesforce’s premier Independent Software Vendor (ISV) partner for sales force automation in the pharmaceutical and biotechnology segment.
By 2014, the partnership was further extended into 2025, with Veeva continuing as Salesforce’s preferred worldwide partner for the pharmaceutical and biotech industry. This extension underscored the mutual commitment to driving innovation in the life sciences sector.
Reasons Behind the Split
Veeva’s decision to part ways with Salesforce is driven by a strategic vision to have greater control over its product development and to better address the unique requirements of its clients. By migrating to the Veeva Vault platform, the company aims to provide a more integrated and seamless experience across its suite of applications. This move is expected to enhance innovation and responsiveness to industry-specific needs.
Additionally, the transition to its proprietary platform allows Veeva to optimize costs associated with third-party infrastructure. In 2022, the cost of hosting applications on platforms like Salesforce and AWS amounted to 12% of Veeva’s total annual revenue. By moving to Veeva Vault, the company anticipates reducing these expenses, thereby improving its financial efficiency.
Impact on Current Users
For existing users of Veeva’s CRM solutions, this transition necessitates careful planning. Organizations will need to assess the implications of migrating to the Veeva Vault platform, considering factors such as data migration, third-party system integration, user training, and potential disruptions to ongoing operations. It’s crucial for companies to develop comprehensive transition strategies to ensure continuity and minimize risks.
The migration process will involve several key steps:
- Assessment: Evaluating the current CRM setup and identifying areas that will be affected by the transition.
- Planning: Developing a detailed migration plan that outlines timelines, resource allocation, and risk mitigation strategies.
- Execution: Implementing the migration plan, which includes data transfer and verification, system configuration, and integration with existing tools.
- Training: Providing comprehensive training to users to ensure a smooth transition and adoption of the new system.
- Monitoring: Continuously monitoring the new system post-migration to address any issues promptly and ensure optimal performance.
Companies are advised to engage with both Veeva and Salesforce during this period to receive guidance and support throughout the transition process.
Decision Deadlines
The formal separation is set for September 2025, after which Veeva will cease renewing its Salesforce partnership. A five-year wind-down period extends until September 2030, allowing organizations time to complete their migration to the Veeva Vault platform. However, it’s advisable for companies to initiate the transition process well in advance to address any unforeseen challenges.
Early planning is essential to mitigate risks associated with data migration and system integration. Organizations should establish internal task forces or committees dedicated to overseeing the transition, ensuring that all aspects of the migration are meticulously managed.
Industry Significance
This split is significant for the life sciences industry, as it may lead to increased competition and innovation in CRM solutions tailored to the sector. Organizations now have the opportunity to re-evaluate their CRM strategies, potentially exploring alternative solutions that better align with their evolving needs. The move also underscores the importance of flexibility and adaptability in technology partnerships within the industry.
The emergence of new CRM solutions, such as Salesforce’s Life Sciences Cloud, indicates a dynamic shift in the market. These developments encourage organizations to stay abreast of technological advancements and remain open to adopting innovative solutions that can enhance their operations.
Expert Insights
Industry experts emphasize the strategic nature of this transition. As noted by a consultant from Everest Group, “Sometimes this is being seen as just an IT migration — but no, if you’re just migrating, you’re missing the strategic importance of this. A lot of leaders are starting to realize this is a much bigger decision, and they need to think through the choices, the timing and the approach to set up for a very different world.”
This perspective highlights the need for organizations to view the transition not merely as a technical change but as a strategic initiative that can redefine their CRM capabilities and overall business processes.
Conclusion
The Veeva-Salesforce split marks a transformative moment in the life sciences CRM landscape. Organizations must proactively engage in strategic planning to navigate this transition effectively, ensuring that their CRM systems continue to support their operations and sales
For more information:
QPharma Inc. founded in 1994 by an industry veteran, QPharma initially specialized in Computer System Validation consulting within the pharmaceutical sector. Over time, our expertise expanded to cover all areas of validation and regulatory compliance. We built a strong partnership with Veeva, providing Quality Assurance services for their new CRM. Our team was responsible for developing documentation and conducting thorough validation testing before each software release, ensuring high standards were met with every update.
With QPharma’s deep expertise in both compliance and technology, QPharma is uniquely positioned to guide your organization through a seamless transition. Our extensive experience with these systems empowers us to efficiently plan, document, and execute every step of the process. To schedule a meeting with a QPharma subject matter expert, please Contact QPharma or click to visit our Website.
