Marc Benioff tweeted: "Today we are cancelling all programs requiring our customers and employees to travel to Indiana to face discrimination."
Salesforce hasn't said if it's considering moving all of its operations out of the state. Last year, Benioff's company acquired a company based in Indianapolis.
The CEO is also calling on other tech executives and tech industry leaders to take a stand. He said they need to pay attention to the impact of the new law on employees and customers.
Thank you to the @NCAA president! Mark Emmert he says will closely monitor how the new Indiana law affects student-athletes & employees.— Marc Benioff (@Benioff) March 26, 2015
The measure Governor Mike Pence signed on Thursday allows businesses to turn away gay and lesbian customers in the name of religious freedom.
Supporters say the law protects businesses from having to provide services for things they don't support, such as same-sex marriage.
San Francisco Mayor Ed Lee says he's banning official city travel to Indiana.
In a statement he said: "San Francisco taxpayers will not subsidize legally-sanctioned discrimination against lesbian, bisexual, and transgender people by the state of Indiana."