QUOTE AND NEWS
Forbes  Jun 30  Comment 
Cooladata CEO Dan Schoenbaum shares the vision behind the company, disrupting the data industry and redesigning how companies study human behavior.
Clusterstock  Jun 29  Comment 
In the midst of Salesforce's developer conference TrailheaDX, three start ups battled it out on stage to convince a panel of judges that they were worthy of the $50,000 prize. The prize money from Dreampitch ultimately went to Digital...
Forbes  Jun 29  Comment 
I spoke with Base Founder and CEO Uzi Shmilovici about the vision behind his company, challenging Salesforce, and developing the future of CRM software.
TechCrunch  Jun 28  Comment 
 Salesforce launched three AI tools for developers today at the TrailheaDX developer conference. These algorithms, which fall under the new Einstein Platform Services, enable third-party developers to add Einstein intelligence to applications...
Motley Fool  Jun 28  Comment 
Both IBM and Salesforce have been developing artificial intelligence platforms and are now teaming up, but one of them stands to gain more from the technology.
Benzinga  Jun 27  Comment 
Salesforce.com, inc. (NYSE: CRM) CEO Marc Benioff is considered to be one of the greatest tech CEOs in the business. So, when he talks about technology stocks and valuations, investors listen to what he has to say. Fewer Opportunities For...
Cellular News  Jun 22  Comment 
Gryphon Networks, a leader in phone-based sales activity software and compliance services, announces the latest App for CRM-Salesforce, including full support for their Lightning user interface. The Gryphon App is a Managed...
Cellular News  Jun 21  Comment 
WATERFORD, Wis.andnbsp;Runzheimer, a leading business vehicle technology and solutions provider, announced its award-winning mileage capture app, Equo™, is now available on the Salesforce AppExchange. Equo offers Runzheimer enterprise customers...
Cloud Computing  Jun 12  Comment 
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO...
Benzinga  Jun 12  Comment 
Adobe Systems Incorporated (NASDAQ: ABDE) is up 34 percent this year, outperforming the S&P 500 up 8 percent. It’s also trading 20 percent higher than Pivotal analyst Brian Wieser’s price target, but the analyst downgraded the company from...




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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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