Salesforce cans European Dreamforce

In a surprise announcement on Salesforce.com, the company has cancelled spring's European Dreamforce conference:

It continues to become clear that the demand for cloud computing is growing faster and spreading wider than we can address with a single event. As a result of your feedback and interest, Salesforce.com will be taking the show on the road with a series of free Cloudforce events across the world. On April 7, 2009, Salesforce.com CEO Marc Benioff will host Cloudforce London at the ExCel Centre. Cloudforce London will feature the best of Dreamforce including an inspirational keynote, educational breakout sessions, and a partner expo showcasing the latest cloud innovations...

With this free one-day event replacing Dreamforce Europe, Cloudforce London is your chance for your whole team to get clarity and concensus on your cloud computing strategy in one big day.

Dreamforce Europe registrants will automatically be refunded their conference fees and registered for this event.

One can only assume that in the current economic climate, Salesforce is finding it hard to sell a full conference plan to partners and attendees such that it can break even on the event, let alone make money.

That surprises me because sources inside the company say it is hiring aggressively and several potential hires have been talking to me about the possibility of joining. This is in sharp contrast to what Brian Sommer is reporting in other parts of the enterprise market. If there were significant problems, then I would have expected a pre-announcement. That has not happened.