Yesterday (Jun 5th, 2007), Google announced global strategic alliance with Salesforce.com, the current market leader providing software in an on-demand model. Salesforce.com’s online CRM package was enriched by the integration of Google Adwords, which will now enable the CRM users to create ads and manage them from one place.

Partnership seems to make a lot of sense for a few reasons. One, it will strengthen Google’s #1 position in the SAAS area while their Microsoft is striving to rollout more live.com services. Two, it will open up new distribution channels for their partners’ core services. Finally, it may eventually lead to integration of their platforms and deployment of a common environment, allowing third-party developers to get their piece of the action in the SAAS world.