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Salesforce, ServiceNow Suffer as Customers Delay Software Deals

  • Chatter of slowing sales hits five-year high on earnings calls
  • Workday, Zoom, Splunk also warn of more cautious clients
The Salesforce West office building in San Francisco.

The Salesforce West office building in San Francisco.

Photographer: David Paul Morris/Bloomberg

US companies aren’t sure if we’re in a recession, but they’re pulling back spending just in case. First it was travel and hiring -- now they’re even getting nervous about buying the software considered essential for their businesses. 

Enterprise technology giants are finding that customers aren’t as eager to sign software subscription deals as they were a few months ago. Companies are still buying programs to help with data storage, customer relations and human resources, but they’re delaying those purchases a bit -- and the chief financial officer probably needs to take a peek at the contract and sign off first.