Benzinga  Jun 19  Comment 
In a report issued Thursday, analysts at Pacific Crest including Rob Owens, Brendan Barnicle, Brent Bracelin and their respective teams looked into the software industry and trends among developers. According to the note, “the days of broad,...
Forbes  Jun 18  Comment 
While not getting much fanfare, Veeva Systems (VEEV) has been one of the top cloud operators during the past few years (the company is actually profitable!) Then again, the firm has the benefit of a focus on the healthcare industry, providing...
Jutia Group  Jun 18  Comment 
[Benzinga] - In a report published Thursday, Brean Capital analyst Sarah Hindlian maintained a Hold rating on salesforce.com, inc. (NYSE: CRM ). "Salesforce.com appears to be making a push with its multichannel ... Read more on this. ...
Benzinga  Jun 18  Comment 
In a report published Thursday, Brean Capital analyst Sarah Hindlian maintained a Hold rating on salesforce.com, inc. (NYSE: CRM). "Salesforce.com appears to be making a push with its multichannel integrated marketing platform to enable enhanced...
TechCrunch  Jun 18  Comment 
 Salesforce announced a new Wave analytics app today called Sales Wave Analytics, the first in a line of what the company is calling ‘role-based’ packaged apps for the Wave platform. First, some context because all of this Wave talk can get...
Benzinga  Jun 18  Comment 
Pete Najarian said on CNBC's Fast Money that he noticed bullish options activity in Reynolds American, Inc. (NYSE: RAI). Traders were buying the July 75 calls and he decided to follow the trade. Dan Nathan will take a closer look at FedEx...
Forbes  Jun 17  Comment 
Salespeople are Salesforce.com's core constituency, from its name to the customer base who've helped Marc Benioff's shop forecast more than $6 billion in revenue for the year.
Benzinga  Jun 17  Comment 
This piece was originally posted on April 30th, 2015 and is being republished below. Amid the speculation of a merger between Oracle Corporation (NYSE: ORCL) and salesforce.com, inc. (NYSE: CRM), some analysts were looking at Microsoft...


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]


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:

It's like you're on a misison to save me time and money!

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki