QUOTE AND NEWS
TheStreet.com  Dec 15  Comment 
NEW YORK (TheStreet) --Cloud-based sales software startup, InsideSales.com has hired Jim Steele, former chief customer officer of sales automation giant, Salesforce.com   , further cementing the ties between the two companies. Steele joins...
TechCrunch  Dec 15  Comment 
 Microsoft’s got some more support today in its ongoing appeal and wider campaign against the U.S. government over how the latter requests customer data from the cloud, and specifically when the servers where the data is stored are located...
TechCrunch  Dec 13  Comment 
 The Gillmor Gang — John Taschek, Bruce Richardson, Keith Teare, and Steve Gillmor. Recorded live Friday, December 12, 2014 in Menlo Park, California at the Salesforce Analyst Summit 2014. Analysts and Salesforce executives discussed the...
TechCrunch  Dec 11  Comment 
 As companies develop more mobile apps, they need an organized way to distribute them and track usage. Salesforce announced a product today called AppExchange Store Builder that gives companies what they need: their very own AppExchange....
TechCrunch  Dec 10  Comment 
 After several years of relatively stagnant waters, what was a dull CRM landscape dominated by one player is heating up dramatically these past months. Salesforce officially put their $3.5b market acquisitions building blocks together on a...
TechCrunch  Dec 10  Comment 
 Connect, a social address book and friend finder application that launched earlier this year, has raised $10.3 million in new funding as the company prepares to expand into messaging, and also to additional international markets including China,...
Forbes  Dec 6  Comment 
6 in 10 sales people will make quota in 2014, down from 2013 performance numbers. Training and better sales tools are needed. Sales Cloud hasn't kept up with market needs and that has opened the door to new competitors like PipelinerCRM and Get...
Jutia Group  Dec 5  Comment 
[Market Realist] - This 3Q15 earnings review for Salesforce.com (CRM) reveals that the company reported revenues of 1.38 billion and non-GAAP EPS of $0.14. Read more on this. salesforce.com, inc. (CRM), valued at $37.13B, started the session at...
Jutia Group  Dec 3  Comment 
[PR Newswire] - SAN FRANCISCO, Dec. 3, 2014 /PRNewswire/ -- Salesforce (NYSE: CRM), the Customer Success Platform and world's #1 CRM company, today announced that Salesforce executives will participate in the following ... Read more on this. ...
Jutia Group  Dec 2  Comment 
[at Barrons.com] - J.P. Morgan’s Mark Murphy today initiates on 12 software names, assigning Overweight ratings to seven names — Cornerstone onDemand (CSOD), Marketo (MKTO), NetSuite (N), Paycom (PAYC), Salesforce.com (CRM), ... Read more on...




RELATED WIKI ARTICLES
 

Salesforce.com provides enterprise cloud computing applications such as customer and collaboration relationship management (CRM) to businesses of various sizes and industries.[1] By providing subscription-based CRM applications to record, track, manage, and analyze data concerning sales, customer service and support, and marketing operations, Salesforce.com's CRM applications provide customers the ability to build these systems without investing in new software, hardware, and other infrastructure.[2] Salesforce.com's main products and services include CRM applications, the Force.com, AppExchange, and related consulting and maintenance services. Salesforce.com has over 92,000 customers worldwide and derives more than 30% of its revenue from overseas sales. While providing a potential less expensive platform, Salesforce.com faces heavy competition from large business customers who have greater resources and entrenched customer relationships with larger businesses.[3] As these businesses compete for cost conscience customers , profit margins continued to remain depressed.[4]


Business Growth

Through the acquisitions of InStranet in 2008 and Jigsaw in 2010, Salesforce.com has increased its offerings of software-as-a-service, or SaaS, and expanded into adjacent markets.[5] Salesforce.com has developed business applications beyond CRM applications that are designed to attract larger businesses as well.[6]

Trends and Forces

High-degree of competition threatens Salesforce.com's market share and profitability

With greater resources and established relationships with large business customers, large enterprise software companies like SAP and Oracle (ORCL) are a significant threat to Salesforce.com's ability to grow into new markets.[7] In addition, these companies have the ability to develop large research and development facilities, which put pressure on Salesforce.com to develop and market new products and services. In response, Salesforce.com has expanded its product lines through key acquisitions in 2008 and 2010.[8]


Salesforce.com's cloud-based platforms also face competition from cloud-computing rivals like Google (GOOG) and Microsoft (MSFT) as well as from open-source alternatives like SugarCRM.[9] These companies are market similar platforms to those marketed by Salesforce.com that have similar price-advantages that attracted small and medium-sized businesses to Salesforce.com.[10]


Salesforce.com declining 2011 profitability margins partially reflect increased competition in the CRM space as software providers compete for cost-sensitive contracts.[11] In addition, many of Salesforce.com's SaaS competitors have the potential of taking away clients and revenue from the Company.[12]

Salesforce.com needs growth to keep pace with high customer acquisition costs

Salesforce.com's marketing expenses represent almost half of the Company's revenue. While marketing expense represent one type of cost, it illustrates how critical scale is to the Company's profitability.[13] Compared to those of its competitors SAP AG (SAP) and Oracle (ORCL), Salesforce.com operating margins are below industry average.[14] With larger deals, Salesforce.com lowers its customer acquisition costs. In response, Salesforce.com has launched products designed to increase investment in the Company's services. Force.com and Chatter Cloud both represent newly-launched products designed to attract customers to a "suite" of Salesforce.com offerings.[15]

Competition

Within the CRM-space, Salesforce.com's competitors offer open-source, SaaS, and traditional software solutions.[16] Competition is high,which has led to relatively diminished margins for Salesforces.com. Its key competitors include:



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