Benzinga  Oct 3  Comment 
Analysts at Sterne Agee initiated coverage on Salesforce.com (NYSE: CRM) with a Buy rating. The target price for Hanesbrands is set to $70. Salesforce.com's shares closed at $56.64 yesterday. Imperial Capital initiated coverage on shares of...
Forbes  Oct 3  Comment 
Salesforce.com CEO Marc Benioff is perhaps the best showman in the industry. His annual keynotes at the Salesforce company extravaganza, DreamForce (disclosure – Salesforce traditionally covers my travel and expenses to attend DreamForce and is...
TheStreet.com  Oct 2  Comment 
NEW YORK (TheStreet) --aDA Davidsonainitiated coverage onaSalesforce.coma with a "neutral" rating and a $62 price target. The firm said the company is facing increased competition, which could weigh on valuation. The stock closed at $56.73 on...
Benzinga  Oct 2  Comment 
Analysts at DA Davidson initiated coverage on Salesforce.com Inc (NYSE: CRM) with a neutral rating. The target price for Salesforce.com is set to $62. Salesforce.com's shares have gained 6.74% over the past 52 weeks, while the S&P 500 index...
SeekingAlpha  Oct 1  Comment 
By Diamond Technology Management: Situation: Salesforce.com (NYSE:CRM) is an investment in enterprise cloud solutions usurping existing in house corporate software programs. The company has exhibited extremely strong revenue growth (growing 38% in...
newratings.com  Oct 1  Comment 
AMSTERDAM (dpa-AFX) - Royal Philips (PHGFF.PK, PHG) announced its eCareCoordinator and eCareCompanion telehealth applications have received 510(k) clearance from the U.S. FDA. A part of Philips Hospital to Home's suite of telehealth programs,...
Forbes  Sep 27  Comment 
What do Goldman Sachs CEO Lloyd Blankenfein, Salesforce.com founder and CEO Mark Benioff, Virgin Group founder Richard Branson, LA Clippers interim CEO Dick Parsons and former Oracle CEO Larry Ellison have in common—beyond their success in...
Benzinga  Sep 25  Comment 
In a report published Thursday, Pacific Crest Securities analyst Brendan Barnicle reiterated an Outperform rating and $74.00 price target on salesforce.com, inc. (NYSE: CRM). In the report, Pacific Crest Securities noted, “After attending the...
Benzinga  Sep 24  Comment 
In a report published Wednesday, Morgan Stanley analyst Keith Weiss reiterated an Overweight rating on salesforce.com, inc. (NYSE: CRM), but removed the $79.00 price target. In the report, Morgan Stanley noted, “Solid progress extending the ET...
Forbes  Sep 24  Comment 
While online surveys have been around for a while, it looks like the space is poised for some big changes. And GetFeedback is leading the charge.


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