QUOTE AND NEWS
Benzinga  Jul 13  Comment 
In a report published Monday, FBR Capital Markets analyst Samad Samana maintained an Outperform rating on salesforce.com, inc. (NYSE: CRM), with a price target of $82, after recent checks showed strong momentum in Europe. Salesforce's business...
Benzinga  Jul 13  Comment 
In a report published Monday, Piper Jaffray analyst Matt O Brien initiated coverage of INVUITY INC (NASDAQ: IVTY) with an Overweight rating and a price target of $18. Invuity's growth is expected to be driven by the acceptance of the Intelligent...
The Economic Times  Jul 11  Comment 
Power BI is forward-looking, with an eye towards supporting modern data types from mobile apps and wearable devices.
The Economic Times  Jul 11  Comment 
Salesforce is expected to surpass $6 billion in revenue this year, making it the fastest enterprise software company to ever do so. Now it's worth over $45 bn
Clusterstock  Jul 9  Comment 
Imagine finalizing a business deal, complete with on-the-spot pitch, while standing in your underwear. And the person you are pitching to is also wearing underwear. Sounds like something out of an anxiety dream, or one of those Freudian...
Jutia Group  Jul 8  Comment 
[at Investopedia] - Pick any recent Salesforce.com (NYSE: CRM) earnings call, and chances are you will hear CEO and co-founder Marc Benioff lampooning SAP (NYSE: SAP). Take this nugget from the first quarter fiscal 2016 conference, ... Read more...
Forbes  Jul 8  Comment 
I recently met up with David Schmaier, who is the CEO of Vlocity (here’s my write up on the company). He mentioned that his firm has been using a new system called Wave, a technology from Salesforce.com that allows for data analytics.
Jutia Group  Jul 7  Comment 
[at Barrons.com] - Shares of Salesforce.com (CRM) are down 54 cents, or 0.8%, at $68.62, despite a bullish piece this morning from Brean Capital’s Sarah Hindlian, who raised her rating on the shares from Hold to Buy, with an $85 price target,...




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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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