Analyzing Cost of Revenue: Salesforce vs. VMware

In the ever-evolving tech landscape, understanding the cost of revenue is crucial for evaluating a company's financial health. Over the past decade, Salesforce, Inc. and VMware, Inc. have shown distinct trajectories in their cost of revenue. From 2014 to 2023, Salesforce's cost of revenue surged by approximately 764%, reflecting its aggressive growth strategy and expanding market presence. In contrast, VMware's cost of revenue increased by about 240% during the same period, indicating a more stable growth pattern.

Key Insights

• Salesforce's Growth: By 2023, Salesforce's cost of revenue reached over $8.36 billion, a testament to its rapid expansion and increased operational scale.
• VMware's Stability: VMware's cost of revenue, while growing, remained more consistent, peaking at $2.48 billion in 2023.

The data for 2024 shows a continuation of Salesforce's upward trend, while VMware's figures are yet to be reported, leaving room for speculation on its future trajectory.