QUOTE AND NEWS
Benzinga  Jan 26  Comment 
Ann Winblad, co-founder of private equity firm Hummer Winblad, was on CNBC to discuss her top three tech picks: LinkedIn Corp (NYSE: LNKD), salesforce.com, inc. (NYSE: CRM) and Google Inc (NASDAQ: GOOGL). LinkedIn “It is not a human...
Motley Fool  Jan 23  Comment 
High prices be darned, Cowen thinks both of these cloud computing rivals are buys. But why?
Jutia Group  Jan 22  Comment 
[at Fortune] - We’re in the early stages of a data-science revolution, says Salesforce.com CEO Marc Benioff. Read more on this. salesforce.com, inc. (CRM), with a current market cap of $36.30B, started trading this morning at $57.91.   A...
Forbes  Jan 22  Comment 
Oracle's ex-CEO, but still number one power broker, Larry Ellison is perhaps the most entertaining figure in technology. Despite actually being rather annoying in a public speaking situation, his barbs are the stuff of legends. Who can forget his...
Jutia Group  Jan 20  Comment 
[at Bloomberg] - Jan. 20 -- SAP SE isn't interested in buying competitors Salesforce.com Inc. and Workday Inc., the company's Chief Executive Officer, Bill McDermott, told Bloomberg. "Most of the big M&A is behind ... Read more on this. ...
Jutia Group  Jan 19  Comment 
[PR Newswire] - SAN FRANCISCO, Jan. 19, 2015 /PRNewswire/ -- Salesforce (NYSE: CRM), the Customer Success Platform and world's #1 CRM company, today announced that Salesforce Chairman and CEO Marc Benioff will participate ... Read more on this. ...
Forbes  Jan 15  Comment 
84% of marketers plan to increase or maintain their spending on marketing and technology in 2015.  Mobile applications, marketing analytics and CRM tools are the three most critical technologies marketers are planning to invest in during 2015.
Benzinga  Jan 14  Comment 
In a report published Wednesday, Pivotal Research analyst Brian Wieser reiterated a Buy rating on Salesforce.com, inc. (NYSE: CRM), and raised the price target from $74.00 to $80.00. In the report, Pivotal Research noted, “Lastly, we are...




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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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